The U.S.-Iran memorandum of understanding (MOU) that President Trump has indicated will be signed includes provisions for the immediate reopening of the Strait of Hormuz without tolls and sanctions relief for Iran contingent on compliance, according to a diplomat from a mediating country and a U.S. official. The MOU aims to extend a ceasefire for 60 days, during which nuclear negotiations will take place. It outlines a framework for addressing Iran's enriched uranium stockpile, although actions regarding Iran's nuclear program will depend on a subsequent, more detailed agreement.
As of Thursday evening, the deal had received high-level approval from Iranian officials, though it had not yet been signed off by Supreme Leader Mojtaba Khamenei. Trump has indicated that a signing ceremony may occur over the weekend, while a spokesperson for Iran's foreign ministry stated that Tehran had not yet made a final decision. The White House has previously believed that a deal was imminent, but negotiations have stalled multiple times.
On Thursday, four U.S. Air Force C-17 planes departed for Europe, transporting equipment for a potential signing ceremony in Geneva. The tentative agreement was reportedly reached after extensive negotiations between Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi. During these discussions, Al-Thawadi communicated with Trump's envoys, Steve Witkoff and Jared Kushner.
The MOU requires Iran to commit to never acquiring a nuclear weapon and to address issues surrounding its enriched uranium. One U.S. official mentioned that one option could involve down-blending Iran's highly enriched uranium under the supervision of UN inspectors. However, any actions regarding Iran's nuclear program are contingent on a second agreement being reached.
The MOU stipulates that the Strait of Hormuz will reopen immediately without tolls, with a return to pre-war shipping volumes expected within 30 days. In exchange, the U.S. blockade would be lifted, and Iran would receive temporary sanctions waivers to sell oil for 60 days, generating revenue for the country. The extent of sanctions relief will depend on Iran's compliance with the initial agreement.
It remains unclear whether the MOU addresses the fate of billions of Iranian dollars that are currently frozen overseas. Iran has insisted on receiving some funds immediately upon signing, while the U.S. has stated that these would be released in phases based on compliance. Recent discussions have also included a mechanism for Iran to access some of its frozen funds in Qatar for humanitarian purchases.
If both parties agree to sign, the deal, mediated by Qatar and Pakistan, will be referred to as the Islamabad agreement.