After days of speculation, confusion and criticism over the lack of transparency surrounding the US-Iran peace agreement, Washington and Tehran have finally released the full text of their accord. The 14-point "Islamabad Memorandum of Understanding" reveals a far more ambitious framework than many analysts expected, combining a permanent ceasefire, reopening of the Strait of Hormuz, sanctions relief, nuclear restrictions and a massive economic reconstruction package for Iran.
The document ends the most dangerous conflict in West Asia in decades, but many of its provisions remain conditional on a final agreement to be negotiated within 60 days. While financial markets welcomed the reopening of Hormuz and the prospect of lower oil prices, questions remain about implementation, enforcement and whether both sides can overcome decades of mistrust.
The memorandum serves as a temporary framework ahead of a comprehensive peace settlement. The final agreement is expected within 60 days, although both countries may extend the deadline by mutual consent.
The deal focuses on:
Ending military hostilities
Reopening the Strait of Hormuz
Removing sanctions on Iran
Addressing Iran's nuclear programme
Releasing frozen Iranian assets
Launching a major reconstruction programme
The first provision establishes an immediate and permanent halt to military operations between the US, Iran and their allies.
Key commitments include:
Permanent cessation of military action on all fronts
No future attacks or use of force by either side
Respect for territorial integrity and sovereignty
Extension of ceasefire commitments to conflict zones including Lebanon
The agreement also commits both countries to refrain from interfering in each other's internal affairs.
One of the most closely watched sections concerns the Strait of Hormuz, through which a large share of global oil exports passes.
Washington has agreed to:
Begin lifting its naval blockade immediately
Remove all maritime restrictions within 30 days
Withdraw military forces from Iran's vicinity after a final agreement is signed
Tehran has agreed to:
Facilitate safe passage for commercial vessels
Waive transit-related charges for 60 days
Restore normal shipping traffic levels
Undertake demining and removal of military obstacles
Iran will also begin discussions with Oman and other Gulf states on the future administration and maritime services of the strategic waterway.
Perhaps the most surprising element of the agreement is the economic component.
The US has pledged, along with regional partners, to develop a reconstruction and economic development programme worth at least $300 billion for Iran.
The funding mechanism and implementation framework will be finalised during negotiations for the final agreement.
The memorandum commits Washington to a phased removal of sanctions against Iran.
The proposal includes:
Lifting US primary and secondary sanctions
Ending restrictions linked to UN Security Council measures
Removing sanctions connected to international nuclear oversight bodies
Providing licences and waivers required for financial transactions
The issue is expected to be one of the most complex aspects of the final negotiations.
The agreement requires Iran to reaffirm that it will not develop or acquire nuclear weapons.
Both sides have agreed to negotiate:
The future of Iran's stockpile of enriched nuclear material
International monitoring mechanisms
Potential limits on enrichment activities
A framework to meet Iran's civilian nuclear requirements
The International Atomic Energy Agency (IAEA) will play a supervisory role in managing enriched material.
The US Treasury will immediately issue waivers permitting:
Exports of Iranian crude oil
Sales of petroleum products and derivatives
Associated banking, insurance and shipping services
Washington has also agreed to release frozen or restricted Iranian assets, with procedures to be finalised during subsequent negotiations.
Until a comprehensive agreement is reached:
Iran will maintain its current nuclear programme without expansion
The US will refrain from imposing new sanctions
No additional American military deployments will take place in the region
To ensure compliance, the agreement establishes a joint monitoring mechanism.
The final settlement will also be backed by a binding United Nations Security Council resolution, giving the deal international legal standing.
