Vice President JD Vance confirmed both sides had already “signed the deal digitally” on June 15, ahead of the formal ceremony. On Iran’s side, Parliament Speaker Mohammad Bagher Ghalibaf signed the document.
The MoU, a 14-point draft obtained by Bloomberg News, does not end the conflict by itself. It sets up 60 days of negotiations for a final agreement. Here is what each provision says.
1. War Ends on Signing
The MoU declares an immediate and permanent end to the war on all fronts, including Lebanon, effective from the moment of signing. Both countries, along with their wartime allies, commit to no hostile actions against each other and to refraining from the threat or use of force.
Operation Epic Fury, the US code name for its joint military operations with Israel, began on February 28, 2026, with nearly 900 strikes in the first 12 hours, targeting Iranian missiles, air defences, military infrastructure, and leadership. Khamenei was killed in the first wave of strikes.
A strike on the Shajareh Tayyebeh girls’ elementary school in Minab, Hormozgan province, on the same day killed 165 people, most of them girls aged between 7 and 12, with at least 95 others wounded. Both the US and Israel denied deliberately targeting the school.
2. No Interference Clause
Both sides commit to respecting each other’s sovereignty and territorial integrity and to not interfering in each other’s internal affairs. This is a standard diplomatic clause but carries weight given the scale of US and Israeli military action inside Iran since February 28, 2026.
3. 60 Days to Deal
The two countries must negotiate and sign a final agreement within 60 days of the MoU. The deadline can be extended by mutual consent. All remaining provisions of the MoU are to be confirmed in that final agreement.
4. US Lifts Naval Blockade
The US imposed a naval blockade on Iran on April 13, 2026, following the failure of the Islamabad Talks. By April 22, Trump claimed the blockade was costing Iran $500 million daily, while the Pentagon estimated Iran had lost $4.8 billion in oil revenue by May 1.
Under the MoU, the US must lift that blockade immediately upon signing and restore shipping traffic to pre-war volumes within 30 days. It must also withdraw its forces from surrounding areas within 30 days of the final agreement being signed.
Trump pre-empted the formal ceremony by declaring on social media: “Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
5. Iran Clears Its Mines
Iran’s Revolutionary Guard Corps laid sea mines in the Strait of Hormuz, boarded and attacked merchant ships, creating what The Guardian described as a “dual blockade.” Until the US-Israeli war against Iran, the Strait of Hormuz carried about 25% of the world’s seaborne oil trade and 20% of global liquefied natural gas.
Under the MoU, Iran must resume merchant shipping between the Persian Gulf and the Sea of Oman within 30 days of signing, including neutralising its own mines and removing technical obstacles, to restore pre-war traffic volumes.
6. $300 Billion Reconstruction Fund
The US and its regional partners must jointly create a rehabilitation and economic development plan for Iran with financing of at least $300 billion. The implementation mechanism is to be formalised within 60 days as part of the final agreement.
7. All Sanctions to Go
The US commits to ending all sanctions against Iran on a schedule agreed upon in the final agreement. This covers UN Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral US sanctions — both primary and secondary.
8. Iran Renounces Nuclear Weapons
Iran reiterates in the MoU that it “will never produce nuclear weapons.” The final agreement will address what happens to Iran’s existing enriched material and all other mutually agreed nuclear-related issues, including Iran’s stated civilian nuclear needs.
9. Status Quo Until Then
Pending the final agreement, both sides agree to maintain the current state of affairs. Iran will not advance its nuclear programme beyond its present status, and the US will not impose new sanctions or increase its military presence in the region.
10. Immediate Oil Waivers
From the moment the MoU is signed, the US Treasury Department will issue waivers covering Iranian crude oil exports, petrochemical products and their derivatives, and all related services — including banking, insurance, and transportation — until sanctions are formally lifted.
11. Iran’s Frozen Assets Released
The US will release frozen or restricted Iranian funds and assets in step with progress toward a final agreement. Iran’s Central Bank will determine how those funds are used. The US will issue all necessary permits and licenses to facilitate this.
12. Joint Oversight Mechanism
Both countries agree to establish an implementation mechanism to oversee compliance with the final agreement once signed.
13. Iran’s Pre-Conditions
Iran will not enter negotiations on the remaining articles of the MoU until it receives confirmed assurances that four specific provisions have begun to be implemented: lifting of the naval blockade (Article 4), resumption of Persian Gulf shipping (Article 5), oil export waivers (Article 10), and release of frozen assets (Article 11). This sequencing clause gives Iran a structured guarantee before it commits to further talks.
14. UN Ratifies Final Deal
The final agreement, once negotiated, will be approved through a binding UN Security Council resolution — giving it the force of international law and making it harder for either side to walk away without consequences.
Iranian Deputy Foreign Minister Kazem Gharibabadi said the agreement “does not signify trust in the enemy and was drafted in an atmosphere of continued distrust,” signalling that the road to a final deal within 60 days remains uncertain even as both sides prepare to sign.
(With input from agencies)
