The United States and Iran have signed a memorandum of understanding to end the war, with the agreement taking effect immediately as both sides move into a 60-day process to negotiate a final settlement. Iran’s foreign ministry spokesman said the text of the MoU had been officially signed, while reporting citing U.S. officials said President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf signed the pact.
The signing follows days of public debate after the US-Iran MoU full text was read out by a senior U.S. official, revealing a 14-point framework covering the end of hostilities, the Strait of Hormuz, sanctions, nuclear limits and reconstruction financing.
US-Iran Memorandum Takes Effect Immediately
The memorandum declares the immediate and permanent termination of military operations on all fronts, including Lebanon, and commits both governments to refrain from hostile action or threats of force against each other. The 14-point text also commits both sides to respect sovereignty and territorial integrity while negotiations continue.
The framework gives Washington and Tehran up to 60 days, extendable by mutual consent, to reach a final agreement. That final deal would address nuclear issues, sanctions relief, implementation sequencing and long-term regional security arrangements.
Trump warned Wednesday that the memorandum was not the final agreement and said the United States could resume bombing if Iran did not comply. He described the arrangement as conditional, saying Iran must follow through on its obligations.
Strait of Hormuz Reopening Begins
The signed memorandum begins the process of reopening the Strait of Hormuz, one of the world’s most important energy shipping routes. Iran’s official news agency reported that the agreement ends fighting and maritime blockades in the Gulf area, including steps tied to reopening commercial passage.
The memorandum says the United States will lift its naval blockade and remove impediments affecting Iranian ships and ports, while Iran is expected to help restore marine traffic in the Persian Gulf and Gulf of Oman. The agreement also calls for technical and military obstacles, including de-mining, to be addressed during the implementation period.
The Hormuz provisions are a central reason markets responded quickly to the deal. The shipping lane had become a major pressure point during the conflict, affecting energy markets, insurance costs and commercial transport across the Gulf.
Oil Sales and Sanctions Waivers
The memorandum allows Iran to begin selling oil and fuel under U.S. Treasury waivers once the agreement is signed. A senior U.S. official said the waivers cover Iranian crude oil and fuel sales, along with related banking, insurance, transportation and other services.
The sanctions provisions remain conditional and are expected to be negotiated further during the 60-day period. The broader framework also points to the $300 billion Iran reconstruction plan, which U.S. officials have described as tied to Iran’s performance rather than a direct American payment.
Vice President JD Vance has pushed back on claims that the United States agreed to an unconditional payout or immediate release of all frozen funds. Public statements from administration officials have emphasized that benefits under the memorandum depend on Iran complying with nuclear, maritime and security obligations.
Nuclear Terms Still Need Final Agreement
Iran reaffirmed in the memorandum that it will not produce or acquire nuclear weapons. The text also says the sides will resolve the status of Iran’s enriched material through a mutually agreed mechanism, with downblending under International Atomic Energy Agency supervision listed as a minimum method.
The signed memorandum does not complete a full nuclear settlement. A senior U.S. official said sequencing will be central to the next phase, because each side wants assurances before carrying out the most politically sensitive steps.
That means the agreement stops the fighting immediately but leaves major technical questions for talks in Switzerland. Those talks are expected to cover enriched uranium, inspections, sanctions timing, frozen assets and enforcement.
Formal Talks Move to Switzerland
A formal in-person meeting remains expected in Switzerland, where U.S. and Iranian delegations are set to begin the next phase of negotiations. The memorandum gives both sides a diplomatic framework, but not a finished peace treaty.
The signing is still a major shift after months of war, maritime disruption and regional escalation. It ends active hostilities for now, starts the reopening of Gulf shipping, and sets a short deadline for a final deal that must still resolve the most difficult nuclear and sanctions issues.
For Washington, the agreement now moves from announcement to enforcement. For Tehran, access to oil sales, funds and reconstruction financing depends on compliance. For markets and U.S. allies, the immediate test is whether the ceasefire and Hormuz reopening hold long enough for negotiators to produce a final agreement.
