What's in the US-Iran agreement? Key terms of the 14-point memorandum

Hind Al Soulia - Riyadh - WASHINGTON — US officials have unveiled the full text of a 14-point memorandum of understanding with Iran designed to extend the ceasefire, reopen the Strait of Hormuz and create a framework for ending the conflict between the two countries.

The Trump administration has described the agreement as “performance-based,” with benefits for Iran tied to compliance with its commitments.

President Donald Trump said at the G7 summit in France that the agreement could be formally signed as early as Thursday.

The memorandum begins with an immediate and permanent cessation of military operations by all parties, including in Lebanon. It states that neither side will initiate military action or threats against the other and commits both countries to respecting Lebanon's sovereignty and territorial integrity.

The agreement also includes mutual commitments by Washington and Tehran to respect each other's sovereignty and refrain from interfering in internal affairs.

Under the framework, the two sides aim to reach a final agreement within 60 days, although the timeline can be extended by mutual consent. Negotiations are expected to begin after a signing ceremony planned in Geneva.

Once the memorandum is signed, the United States will begin removing its naval blockade and restrictions affecting Iranian ports. The agreement states that the blockade will be fully lifted within 30 days.

The United States has also committed to returning its military posture around Iran to prewar levels within 30 days after a final agreement is concluded.

Iran, for its part, has agreed to facilitate the immediate resumption of commercial shipping through the Strait of Hormuz without charging transit fees. The agreement acknowledges that technical work, including demining operations, may be required before normal traffic levels are restored.

The memorandum also calls for Iran to work with Oman and other Gulf states on a broader framework governing the management of the strategic waterway.

A central economic component of the agreement is a proposed reconstruction and development package worth at least $300 billion. The funding mechanism is expected to be finalized within 60 days of a comprehensive agreement.

US officials have stressed that Washington will not directly contribute funds but will facilitate investment and grant necessary licenses and waivers.

The memorandum also sets out a path toward ending US and United Nations sanctions on Iran. The timeline for sanctions relief will be negotiated as part of a final agreement, although both sides have pledged to address the issue immediately during upcoming talks.

On the nuclear issue, Iran has reaffirmed that it will not seek to acquire nuclear weapons. The agreement also commits both sides to developing a mechanism for handling Iran's stockpile of enriched uranium under the supervision of the International Atomic Energy Agency.

Until a final arrangement is reached, the memorandum establishes a temporary status quo for Iran's nuclear program. During this period, the United States will refrain from imposing new sanctions and will issue waivers allowing Iranian oil exports and related financial transactions.

The agreement also provides for the gradual release of frozen Iranian assets, with access linked to compliance with various provisions of the memorandum.

The final sections establish a monitoring mechanism to oversee implementation of both the memorandum and any future agreement. They also commit both sides to begin negotiations on a comprehensive settlement immediately after the memorandum enters into force.

Any final agreement would ultimately be endorsed through a binding United Nations Security Council resolution.