Senior US officials have revealed the contents of a preliminary memorandum of understanding (MOU) between Washington and Tehran to end the 110-day conflict which has cost thousands of lives and devastated the world economy.
The officials dictated the MOU to journalists on Wednesday, ahead of formal signing ceremony expected to take place in the coming days. Both sides have 60 days to negotiate the terms before a final agreement.
This is what the deal includes:
To start, 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.
Senior officials on the call read out the line:
“The United States of America and the Islamic Republic of Iran and their allies in the current war by signing this MOU declare the immediate and permanent termination of military operations on all fronts, including in Lebanon.”
The inclusion of Lebanon is significant, and it effectively requires Iran to rein in Hezbollah. Israel retains the right to strike back if Hezbollah attacks regardless, officials added.
2. Iran concedes its enriched stockpile must be destroyed
At minimum, Iran conceded that its enriched uranium stockpile “will be destroyed” through “downblending” (or diluting the uranium) on Iranian soil, under the supervision of the UN’s International Atomic Energy Agency (IAEA).
“The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal.”
3. Sanctions relief and nuclear action are linked
Much of the coverage of the deal has treated sanctions relief and the nuclear question as separate tracks. Officials on the call said the two paragraphs use identical language and are deliberately intertwined.
“The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran … in an agreed upon schedule as part of the final deal.”
“The sanctions relief in seven is tied to the nuclear settlement in eight,” a senior official said, referring to the paragraph numbers in the agreement. “To the extent that you perform on the nuclear questions, you will get the sanctions relief.”
So: Iran will not receive broad sanctions removal simply by signing the agreement.
4. An oil sanctions waiver
Iran receives almost nothing upfront, with one exception. The US treasury will issue waivers for Iranian crude oil exports, petroleum products and associated banking services the moment the document is signed.
“Immediately upon the signing of the MOU … US Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions and services, transportations, etc.”
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.
Relieving the waiver, they said, removes that subsidy and gives the US better visibility into where Iranian oil is going.
5. Iran must restore strait of Hormuz traffic within 30 days
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 officials said the Gulf states would never agree to any longer-term arrangement that charges for access.
Senior officials said for the first time in the 100 days of war, Iran fired on no vessels in the strait of Hormuz the day before the call.
6. Iran’s frozen assets will only be released after they implement the terms of the agreement
According to the officials on the call, the text makes clear that 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 the Islamic Republic of Iran … upon the implementation of the MOU.”
7. Both sides have 60 days to negotiate
The agreement gives both sides 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.
“The United States of America and the Islamic Republic of Iran commit to negotiating and achieving the final deal in maximum 60 days extendable with mutual consent.”
But the fragility shouldn’t be understated – one senior US official explained: “Either side can walk away at any time.” If talks collapse, they indicated the US was prepared to tighten the economic pressure significantly.
