Point by Point: The 14 Key Provisions of the Memorandum of Understanding Between the United States and Iran

The Trump administration reached an initial agreement with Iran to sign a 60-day ceasefire next Friday. Among other things, the roadmap includes the gradual reopening of the Strait of Hormuz, the dismantling of Iran’s nuclear program, the lifting of sanctions, and a $300,000 million reconstruction fund for the Iranian regime.

After the terms of a purported agreement were initially leaked, a White House official read the 14-point memorandum of understanding, which would lead to the aforementioned 60-day ceasefire. During that period, both sides will seek to negotiate a final agreement to end the conflict that began on February 28.

In general terms, the agreement aims to ensure that Iran does not develop nuclear weapons and to guarantee free navigation through the Strait of Hormuz. In exchange, Tehran would receive economic relief through the gradual lifting of sanctions, the release of frozen assets, and the opportunity to resume its oil exports.

The 14 points of the initial agreement between the United States and Iran

According to the senior U.S. official, the conflict could resume if any of the points of the understanding are violated: “If Iran actually does all the things that they're telling you…that would be a home run deal. You could say that the MOU is final…but either side can walk away at any time until you really have a fulsome binding deal.”

1- Immediate cessation of hostilities

The United States, Iran, and their respective allies will immediately cease all military operations related to the conflict. In addition, both parties will commit to not initiating new armed actions or threatening the use of force while negotiations are ongoing.

The agreement will also extend the ceasefire to other theaters of the war, including Lebanon.

2- Commitment to Respect the Sovereignty of Both Countries

The United States and Iran commit to respecting each other’s sovereignty and territorial integrity, as well as refraining from intervening in internal affairs that could affect the political stability of each country.

3- 60-Day Negotiation Period

The memorandum establishes a 60-day period for Washington and Tehran to negotiate a final agreement. During that time, both parties will seek to resolve outstanding differences regarding security, sanctions, and Iran’s nuclear program, although the deadline may be extended if there is consensus among the negotiators.

4- Gradual End to the U.S. Naval Blockade

The United States will begin to immediately lift the naval blockade imposed on Iran and must completely eliminate it within 30 days. In exchange, the Iranian regime will gradually restore maritime and commercial transit affected by the conflict.

The memorandum also provides for Washington to withdraw its military forces from the vicinity of Iran once both parties reach a permanent agreement.

5- Iran will reopen the Strait of Hormuz to international trade

In one of the agreement’s central provisions, the Iranian regime will guarantee the safe passage of commercial vessels through the Strait of Hormuz during the 60-day truce and will not charge fees for its use. In addition, it will begin removing mines and other obstacles installed during the conflict to restore normal navigation.

The memorandum calls for commercial transit to recover gradually and return to full operation within 30 days. The agreement also provides for talks between Iran, Oman, and other Gulf countries to define the future operation and administration of this strategic maritime route.

6- A $300,000 million plan to rebuild the Iranian economy

The memorandum provides for the creation of a reconstruction and economic development program for Iran worth at least 300,000 million dollars, financed with support from the United States and other regional partners. Over the next 60 days, the parties must determine how the mechanism responsible for managing and overseeing these funds will operate.

In addition, the Trump administration will commit to granting the necessary licenses and waivers to facilitate financial transactions associated with the project.

7- The United States will negotiate the lifting of sanctions against Iran

Washington commits to negotiating the gradual elimination of sanctions imposed on Iran, including U.S. economic restrictions and other international measures linked to Iran’s nuclear program. The timeline and conditions for their implementation must be defined as part of the final agreement.

Both the United States and Iran recognize that the future of the sanctions will be one of the central issues in the negotiations to be held over the next 60 days.

8- Iran Renounces the Development of Nuclear Weapons

The memorandum also stipulates that Iran must commit to neither developing nor acquiring nuclear weapons, one of Washington’s main objectives during the negotiations.

The document provides that Iran’s stockpiles of enriched uranium will undergo a neutralization process under international supervision, although the details will need to be worked out in the final agreement. The material will be monitored by the International Atomic Energy Agency (IAEA), currently headed by Argentine Rafael Grossi.

9- Neither party may escalate the conflict during the negotiations

Until a final agreement is reached, Iran will maintain its nuclear program unchanged, and the United States will not impose new sanctions or deploy additional forces in the Middle East. The goal is to prevent an escalation while negotiations continue.

10- Washington will ease restrictions on Iranian oil

The Trump Administration will allow Iran to resume its oil exports by issuing special waivers. The measure will also facilitate financial transactions, insurance, and transportation services related to Iran’s energy trade, even before a permanent agreement is reached.

11- The United States will unfreeze Iranian assets held abroad

The Trump administration will commit to allowing Iran to regain access to funds and assets that remain frozen or subject to financial restrictions . During the negotiations, both parties will define the mechanism for releasing those resources and making them available again to Iranian authorities.

12- A body will oversee both parties’ compliance with the agreement

The memorandum provides for the creation of a monitoring mechanism designed to verify that both Washington and Tehran honor the commitments made during the truce. The same body would also be tasked with overseeing compliance with a future permanent agreement.

13- Negotiations will move forward as commitments are fulfilled

Washington, D.C., and Tehran will only address the outstanding issues of the final agreement after some of the most important measures agreed upon in this first phase take effect. The goal is to build trust between both parties through concrete actions before finalizing the most sensitive aspects of the negotiations.

14- The final agreement will be backed by the United Nations

The United States and Iran will seek to have the final agreement approved through a binding resolution of the United Nations (UN) Security Council. In this way, the commitments made by both parties would have international backing and would be incorporated into the UN’s legal framework.