The framework agreement follows months of hostilities that began after US-Israeli strikes on Iran in February, a conflict that destabilised the region and sent shockwaves through the global economy.
Under the memorandum, the United States and its regional partners will develop a package worth “at least” $300 billion to support Iran’s reconstruction and long-term economic development.
On the nuclear issue, Iran reaffirmed that “it shall not procure or develop nuclear weapons”.
The agreement states that the fate of Tehran’s enriched uranium stockpile will be determined through “a mechanism that will be mutually agreed upon… with the minimum methodology to be down-blending on site under the supervision of the IAEA”.
While negotiations continue, Iran has agreed to “maintain the current status quo of its nuclear program”, while the United States pledged that it “will not impose any new sanctions, and will not deploy additional forces in the region”.
A key provision of the memorandum is the immediate cessation of hostilities. The United States, Iran and their allies agreed to “declare an immediate and permanent termination of military operations on all fronts, including in Lebanon”.
The parties further committed “not to initiate any war or any military operation against each other and to refrain from the threat or use of force against each other, and to ensure the territorial integrity and sovereignty of Lebanon”.
Both countries also agreed to pursue and conclude a permanent settlement within a fixed timeframe. According to the memorandum, Iran and the United States are committed to “negotiating and achieving the final deal in a maximum of 60 days, extendable with mutual consent”.
As part of confidence-building measures, Washington will “immediately” begin lifting the blockade imposed on Iranian ports on April 13 and is expected to fully remove it within 30 days.
The United States also pledged to “remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal”.
The agreement further addresses maritime trade routes, with Iran committing to ensure the “safe passage of commercial vessels with no charge, for 60 days only, from the Persian Gulf to the Sea of Oman, and vice versa. The traffic of commercial vessels will immediately start” and be fully restored within 30 days after mines are cleared from the Strait of Hormuz.
On sanctions relief, the United States undertook to “terminate all types of sanctions against” Iran and to “make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon the implementation of this MOU”.
In addition, the US Treasury will “issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances, (and) transportation” with immediate effect pending the complete removal of sanctions.
Pakistan’s Prime Minister, Shehbaz Sharif, who helped mediate the negotiations, disclosed that the memorandum was electronically signed on Thursday by US President Donald Trump and Iranian President Masoud Pezeshkian.
According to Sharif, a ceremony will be held in Switzerland on Friday to “commemorate this landmark event and commence with the technical level talks”.
The memorandum also provides that the eventual peace accord will be endorsed through a binding resolution of the United Nations Security Council.