A historic shift in US-Iran relations. Both sides formally signed a 14-point Memorandum of Understanding (MOU), launching a 60-day ceasefire and nuclear negotiation window. According to the full text obtained by Time magazine, the agreement covers military ceasefire, Strait of Hormuz passage, nuclear enrichment processing, sanctions relief, and a reconstruction fund.
Points 1-3: Ceasefire and Negotiation Framework
The first article declares an "immediate and permanent cessation of all military operations on all fronts, including Lebanon." Both sides commit to refraining from war or military action, ensuring Lebanon's territorial integrity and sovereignty. Article 2 requires mutual respect for sovereignty and territorial integrity. Article 3 sets a 60-day negotiation period, extendable by mutual consent.
Points 4-5: Hormuz Strait Unblocking and Passage Management
The US pledges to begin lifting the naval blockade immediately after signing the MOU and fully end it within 30 days. Iran must use best efforts within 60 days to ensure free passage for commercial vessels from the Persian Gulf to the Gulf of Oman. After the 60-day transition, Iran will negotiate with Oman on future strait management and maritime service fees, inviting Gulf states to participate — echoing Iran's vice president's statement that "Iran will retain control of the Strait of Hormuz."
Points 6-7: $300 Billion Reconstruction Fund and Full Sanctions Removal
The US commits to working with regional partners on an at least $300 billion Iranian reconstruction and economic development plan, with mechanisms finalized within 60 days. The US Treasury will issue all necessary licenses, exemptions, and authorizations. On sanctions, the US agrees to terminate all sanctions against Iran — including UN Security Council resolutions, IAEA Board of Governors resolutions, and all US unilateral primary and secondary sanctions — per a timeline in the final agreement.
Points 8-9: Nuclear Enrichment — On-Site Dilution Instead of Handover
Iran reiterates it will not acquire or develop nuclear weapons. Both sides agree that Iran's existing enriched uranium stockpile will undergo "down blending on site" under IAEA supervision — meaning Iran does not hand over enriched uranium to the US but reduces its purity on site. They also agree to discuss Iran's enrichment needs in the final agreement. During negotiations, both sides maintain the status quo: Iran does not advance its nuclear program, and the US imposes no new sanctions nor regional troop buildup.
Points 10-11: Oil Export Unfreezing and Asset Release
The US promises to issue waivers immediately after the MOU is signed, allowing Iran to export crude oil, petroleum products, and derivatives, as well as all related services including banking, insurance, and shipping. Simultaneously, the US will make Iran's frozen or restricted funds and assets fully available, with Iran's central bank able to designate ultimate beneficiaries.
Points 12-14: Implementation Oversight and Final Agreement
Both sides agree to establish an implementation mechanism to monitor MOU compliance and the final agreement. The last two articles cover entry into force and final agreement confirmation procedures. A senior US official stated: "If Iran truly fulfills all its commitments... this would be a home run deal, but the MOU could be the final version... until a truly binding comprehensive agreement is reached, either side can walk away at any time."
Trump's warning: If Iran violates the agreement, the US will "blow them to smithereens," displaying a tough stance alongside the multilateral framework. This aligns with US officials' remarks — they are aware of Iran's track record of compliance and are prepared to resume military action if necessary.