Senior US officials have revealed the contents of a preliminary memorandum of understanding (MOU) between Washington and Tehran to end the 110-day conflict that has cost thousands of lives and devastated the world economy. The officials dictated the MOU to journalists on Wednesday, before it was signed by Donald Trump and Iranian counterpart Masoud Pezeshkian. Both sides have 60 days to negotiate the terms before a final agreement.
Key Points of the Deal
The MOU includes several critical components aimed at de-escalating the conflict and addressing longstanding issues.
1. Immediate and Permanent Ceasefire
Both the US and Iran, along with their allies, agree to declare an end to military operations on all fronts the moment the document is signed. The inclusion of Lebanon is significant, as it effectively requires Iran to rein in Hezbollah. Israel retains the right to strike back if Hezbollah attacks regardless, officials added. Israel was not a party to the negotiations or the MOU and may not feel bound by the agreement.
2. Iran Agrees to Down-Blend Enriched Uranium
US officials claimed that Iran conceded that its enriched uranium stockpile would at “minimum” be down-blended (or diluted) on Iranian soil, under the supervision of the UN’s International Atomic Energy Agency (IAEA). However, this appears to be a compromise from the US, as Iranian negotiators offered to down-blend their 440kg stockpile of highly enriched uranium under IAEA supervision inside Iran in February, two days before the US and Israel launched their war. A large number of issues related to the nuclear program remain unanswered, with much to be negotiated over the next 60 days.
3. Sanctions Relief Tied to Nuclear Agreement
Much of the coverage of the deal has treated sanctions relief and the nuclear question as separate tracks, but officials said the two paragraphs use identical language and are deliberately intertwined. The US undertakes to terminate all types of sanctions against Iran in an agreed-upon schedule as part of the final deal. The sanctions relief in paragraph seven is tied to the nuclear settlement in paragraph eight, meaning Iran will not receive broad sanctions removal simply by signing the agreement.
4. Oil Sanctions Waiver
Iran will receive waivers for crude oil exports, petroleum products, and associated banking services the moment the document is signed. Officials defended the move, arguing that Iranian oil was already flowing to China regardless and that existing sanctions were simply giving Beijing a steep discount. Critics argue that this allows Iran to immediately refill its coffers before nuclear negotiations even begin, surrendering a key tool of economic leverage.
5. Restoration of Strait of Hormuz Traffic
Iran is required to ensure toll-free passage for commercial vessels for at least 60 days, with full restoration of traffic within 30 days. Senior US officials said Gulf states would never agree to any longer-term arrangement that charges for access. However, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, later said Tehran would charge ships using the strait after the 60-day fee-free period, stating that “Iran has the right to sovereignty over the Strait of Hormuz and of course we will receive a fee for services.” Senior officials noted that for the first time in 100 days of war, Iran fired on no vessels in the strait the day before the call.
6. Release of Frozen Assets Contingent on Implementation
Access to Iran’s frozen funds is contingent on the regime actually implementing the agreement’s terms, not at signing as Iranian officials had hoped. Such funds shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of Iran upon implementation of the MOU.
7. 60-Day Negotiation Period
Both sides have 60 days to negotiate a comprehensive final agreement, extendable by mutual consent. A binding UN Security Council resolution would be required to endorse any final deal. However, one senior US official explained that either side can walk away at any time. If talks collapse, the US is prepared to tighten economic pressure significantly.
