US‑Iran Cease‑Fire MoU: What the 14‑Point Agreement Means

Thu Jun 18 2026 04:56:41 GMT+0000 (Coordinated Universal Time)

A new Memorandum of Understanding between the US and Iran outlines 14 points aimed at ending hostilities, lifting sanctions, and reopening the Strait of Hormuz.

The US and Iran have signed a 14‑point Memorandum of Understanding that sets out a comprehensive framework for ending the conflict that erupted in February. Key provisions include an immediate and permanent cease‑fire on all fronts, a 60‑day timeline for a final deal, the lifting of US sanctions and the removal of the naval blockade, and the reopening of the Strait of Hormuz without tariffs. The agreement also mandates that Iran will not pursue nuclear weapons, establishes a $300 billion reconstruction fund—though the US is not obliged to contribute—and allows for the release of frozen funds in stages. While many details remain to be negotiated, the memorandum marks a dramatic shift in US‑Iran relations and could reshape regional security.

US‑Iran Cease‑Fire MoU: What the 14‑Point Agreement Means

A Memorandum of Understanding (MoU) between President Trump and Iranian President Masoud Pezeshkian marks a turning point in a conflict that began on 28 February. Signed at the Palace of Versailles and announced by the White House, the document contains 14 points that outline the roadmap for a comprehensive peace and economic liaison.

1. Immediate Cease‑Fire on All Fronts

The MoU declares a permanent cessation of military operations on every front, including the Lebanese territory of Hezbollah. Both parties agree to refrain from initiating attacks or threats, thereby preserving Lebanon’s territorial integrity.

2. Respect for Internal Affairs

The U.S. and Iran commit to respecting each other’s sovereignty and not meddling in internal affairs, a move that may be welcomed by Iranian dissidents and a warning to foreign interference.

3. 60‑Day Implementation Deadline

Within 60 days of signing, the parties must negotiate a final, binding deal. The countdown has already started, with an eye toward a rapid conclusion.

4. Removal of US Naval Blockade

The U.S. will lift its blockade of Iranian ports and allow vessels to transit the Strait of Hormuz free of charge. Full removal is scheduled within 30 days, contingent on restored traffic flow.

5. Reopening of the Strait of Hormuz

Iran pledges to facilitate safe, fee‑free passage of commercial traffic through the Strait. De‑mining operations and removal of technical obstacles will support immediate resumption of flow.

6. Reconstruction Fund of $300 Billion

The U.S. and partners agree on a broad plan for a minimum $300 billion reconstruction fund to revive Iran’s economy. The U.S. is not required to contribute but will grant all necessary licences and permissions.

7. Comprehensive Sanctions Relief

All U.S. and UN sanctions on Iran, including oil‑related restrictions, will be lifted—subject to the final deal. Timing will be finalized during post‑MoU negotiations.

8. No Nuclear Weapon Clause

Iran agrees to never pursue or buy a nuclear weapon. The enriched uranium Iran already possesses will be down‑blended under IAEA oversight.

9. Status‑Quo on Nuclear Programme

Until a final agreement is reached, the U.S. will continue to issue waivers for oil exports, transport, and banking while refraining from new sanctions.

10. Frozen Funds Release

The U.S. promises to make all frozen or restricted Iranian funds available once the MoU is signed, with procedures agreed during ongoing talks.

11–14. Monitoring, Final Negotiation & UN Resolution

A monitoring mechanism will be established to oversee compliance, followed by a comprehensive final deal. The agreement is to be ratified by a binding UN Security Council resolution.

While many details—particularly around sanctions timing, nuclear safeguards, and the exact composition of the reconstruction fund—remain to be worked out, the MoU signals a decisive and unprecedented effort to deescalate tensions in the Persian Gulf and provide a framework for long‑term stability.