US and Iran Sign Agreement: Ceasefire and Reopening of Strait of Hormuz
US President Donald Trump and Iranian President Masoud Pezeshkian have signed a 14-point Memorandum of Understanding that includes a ceasefire, reopening of the Strait of Hormuz, and a $300 billion reconstruction fund for Iran, though the US is not obligated to contribute.
A White House official confirmed to the BBC that a US-Iran agreement extending the ceasefire between the two countries has been signed and is now in effect. The document, known as a Memorandum of Understanding (MoU), was signed at the G7 summit in Evian-les-Bains, France. It states that Iran will never possess a nuclear weapon and commits a $300 billion fund for the country's reconstruction and economic development, but the US is not required to contribute.
The agreement is described as "performance-based," meaning Iran benefits only if it complies with its commitments. Here are the key points:
Point 1: An immediate and permanent end to military operations on all fronts, including Lebanon. Iran warned that continued Israeli operations in Lebanon would violate the understanding.
Point 2: Respect for each other's sovereignty, territorial integrity, and non-interference in internal affairs.
Point 3: A 60-day timeline to negotiate a final deal, extendable by mutual consent. The countdown began after the signing.
Point 4: The US will remove its naval blockade and impediments at Iranian ports within 30 days. In a final deal, US forces will withdraw from the proximity of Iran.
Point 5: Iran will use its best efforts to ensure safe passage of commercial vessels through the Strait of Hormuz without charge. Traffic will resume immediately, subject to demining and removal of obstacles.
Point 6: A definitive plan worth at least $300 billion for Iran's reconstruction, developed by regional partners with US blessing. The US will not pay directly.
Point 7: The US will terminate all economic sanctions against Iran, including UN Security Council resolutions and unilateral US measures. The timeline is to be agreed in the final deal.
Point 8: Iran agrees not to acquire nuclear weapons. The two sides will handle existing enriched uranium, with a minimum standard of downblending under IAEA supervision.
Points 9 & 10: A status quo on Iran's nuclear program pending the final deal; the US will not impose new sanctions and will issue waivers for oil exports and related services.
Point 11: The US will release frozen Iranian funds after the MoU is signed, with some assets released gradually as Iran complies with aspects of the agreement.
Points 12-14: Establishment of a monitoring mechanism, commencement of negotiations for a final deal, and endorsement of the final deal by a binding UN Security Council resolution.
