US-Iran MoU Details Emerge: $300bn Reconstruction Aid, Sanctions Relief in 14-Point Deal

The United States and Iran have signed a landmark 14-point memorandum of understanding that outlines a path to ending hostilities, lifting economic sanctions, and launching a $300 billion reconstruction plan for Iran. The agreement, dubbed the “Islamabad MoU,” was read out by a senior US official to journalists on Wednesday and sets the stage for a comprehensive final deal within 60 days. The digital signing has already taken place between President Donald Trump and Iranian parliamentary speaker Mohammad Bagher Ghalibaf, with a formal in-person ceremony scheduled for Friday in Switzerland. The Iranian government has released its own version of the text, which largely mirrors the US readout, though with slightly different emphases on certain provisions such as the centrality of Lebanon’s sovereignty and the operational mechanics of sanctions relief.

The Full 14-Point US-Iran Memorandum of Understanding Text

Below is the complete text of the memorandum as read by the senior US official, beginning with the preamble stating that “The United States of America and Islamic Republic of Iran have jointly agreed in good faith on [a date yet to be determined], on the following:”

Paragraph 1 – Permanent Cessation of Hostilities

The first paragraph declares an immediate and permanent termination of military operations on all fronts, including in Lebanon. The United States and Iran, along with their respective allies in the current war, undertake from now on not to initiate any war or any military operation against each other and to refrain from the threat or use of force against one another, while also ensuring the territorial integrity and sovereignty of Lebanon. The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph. A senior US official emphasized that Iran bears responsibility for restraining Hezbollah, stating that “they have to get a collar on their dog in Hezbollah; they’ve got to hold them back,” making clear that Washington views this as a critical test of Tehran’s good faith.

Paragraph 2 – Mutual Sovereignty

The second paragraph commits both parties to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs. This provision is designed to establish a baseline of mutual non-aggression that extends beyond the immediate military cessation, addressing long-standing Iranian grievances about US support for regime change and American concerns about Iranian influence across the Middle East.

Paragraph 3 – 60-Day Negotiation Window

The third paragraph establishes a maximum 60-day timeline for negotiating and achieving the final deal, a period that can be extended with mutual consent. This tight deadline reflects the urgency both sides feel to capitalize on the current diplomatic momentum while also creating a sense of pressure that could force difficult compromises during the negotiations. The clock is now ticking on this critical window, with the formal signing in Switzerland set to trigger the countdown.

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Paragraph 4 – US Naval Blockade Removal

The fourth paragraph requires the United States to begin removing its naval blockade and any disturbances or impediments against Iran immediately upon signing, with full removal within 30 days. During this period, the traffic of vessels will be in proportion to the numbers of pre-war traffic being restored by Iran. The United States further undertakes to remove its forces from the proximity of Iran within 30 days after the final deal. This represents a significant military de-escalation, as the US naval presence in the Persian Gulf and the Strait of Hormuz has been a major point of tension and a primary tool of economic pressure against Iranian oil exports.

Paragraph 5 – Strait of Hormuz Passage

The fifth paragraph places obligations on Iran to make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only, from the Persian Gulf to the Sea of Oman, and vice versa. The traffic of commercial vessels will immediately start, and considering the need for removing technical and military obstacles and de-mining by Iran, will be instated within 30 days. Iran will also conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states, in line with applicable international law and the sovereign rights of coastal states of the Strait. This provision is crucial for global energy markets, as the Strait of Hormuz is a vital chokepoint through which roughly 20% of the world’s oil passes.

Paragraph 6 – $300 Billion Reconstruction Fund

The sixth paragraph commits the United States to work with regional partners to develop a definitive mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of Iran. The mechanism for implementation will be finalized as part of a final deal within 60 days, and all required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States. A critical detail is that the US will not directly contribute to this fund. Instead, it serves as a framework for regional partners—particularly Gulf states—to invest in Iran’s reconstruction with US approval and sanctions waivers, representing a significant geopolitical shift that could reshape the Middle East’s economic landscape.

Paragraph 7 – Comprehensive Sanctions Termination

The seventh paragraph is perhaps the most consequential for Iran’s economy, as the United States undertakes to terminate all types of sanctions against Iran, including United Nations Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral US sanctions, both primary and secondary, on an agreed-upon schedule as part of the final deal. Both parties acknowledge the critical importance of the sanctions termination issue and express their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them. The Iranian version of the text reportedly places stronger emphasis on this provision as a fundamental pillar of the agreement, reflecting Tehran’s view that sanctions relief is the primary benefit it seeks from the deal.

Paragraph 8 – Nuclear Commitments

The eighth paragraph addresses the most sensitive aspect of the negotiations: Iran’s nuclear program. Iran reaffirms that it shall not procure or develop nuclear weapons, and both parties agree to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in Paragraph 7, with the minimum methodology to be down-blending on site under the supervision of the IAEA. The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal. The final deal will confirm the provisions of this paragraph, and both parties acknowledge the critical importance of the nuclear issues and express their intention to immediately address them in the negotiation. A US official described this provision as a “major, major win” for the United States, as it commits Iran to verifiable steps that roll back its nuclear program.

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Paragraph 9 – Status Quo Maintenance

The ninth paragraph establishes a freeze on the current situation pending the final deal. Iran will maintain the current status quo of its nuclear program, and the United States will not impose any new sanctions and will not deploy additional forces in the region. This “standstill” provision is designed to prevent either side from taking actions that could undermine the negotiations or escalate tensions during the 60-day window, creating a stable environment for the difficult talks ahead.

Paragraph 10 – Immediate Oil Export Waivers

The tenth paragraph provides for immediate economic relief, as the United States undertakes that immediately upon signing the MOU, and until the termination of sanctions, the US Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances, and transportation. This provision allows Iran to begin ramping up its oil exports immediately, providing a tangible economic benefit that can be presented to the Iranian public as a concrete achievement of the diplomatic process.

Paragraph 11 – Release of Frozen Assets

The eleventh paragraph addresses the billions of dollars in Iranian assets that have been frozen or restricted in various jurisdictions around the world. The United States undertakes to make these funds fully available for use upon implementation of the MOU, with the procedures related to the release to be mutually agreed upon during the negotiations. Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of Iran, and the United States undertakes to issue all necessary licenses and authorizations accordingly. This represents a significant financial windfall for Iran, though the exact amount and the timeline for access remain to be determined in the negotiations.

Paragraph 12 – Monitoring Mechanism

The twelfth paragraph establishes that an executive mechanism will be created to monitor the successful implementation of the MOU and the future compliance with the final deal. This monitoring body will be critical for building trust between the two sides and providing verification that each party is meeting its commitments, particularly on the nuclear front and on sanctions relief.

Paragraph 13 – Performance-Based Sequencing

The thirteenth paragraph contains the operational logic of the entire agreement, establishing that after signing the MOU and subject to the beginning of the implementation of Paragraphs 1, 4, 5, 10 and 11, and the continuing implementation of these measures, the United States and Iran will start negotiations regarding the final deal exclusively on the other paragraphs. This is the “performance-based” core of the agreement. Negotiations on the comprehensive final deal only commence after Iran begins implementing its commitments on the ceasefire, maritime security, and the US begins delivering economic relief. A senior US official described the logic: “If the Iranians dial up their good behavior, we respond by dialing up the kind of economic and sanctions relief that can make them a more prosperous country.”

Paragraph 14 – UN Security Council Endorsement

The fourteenth and final paragraph provides for international legitimacy, as the final deal will be endorsed by a binding UN Security Council resolution. This would give the agreement the force of international law and make it more difficult for future US administrations to unilaterally withdraw from the deal, addressing a key Iranian concern following the US withdrawal from the 2015 JCPOA under the first Trump administration.

Analysis: What This Means for US-Iran Relations

The Islamabad MoU represents the most significant diplomatic breakthrough between Washington and Tehran in decades, and several key themes emerge from a close reading of the document. The agreement is structured as a “performance-based” roadmap where Iran’s compliance unlocks specific US actions, creating a dynamic where both sides have ongoing incentives to fulfill their commitments. The $300 billion reconstruction framework, while not a direct US financial commitment, signals a broader realignment in the Middle East where Gulf states may be willing to invest heavily in Iran’s economy as part of a regional stabilization effort. On the nuclear front, Iran has agreed to on-site down-blending of enriched uranium under IAEA supervision, a provision US officials have hailed as a major victory, though the final deal will still need to resolve the broader question of Iran’s enrichment program and the extent to which it will be allowed to continue. The MoU provides for immediate oil export waivers and a phased removal of the naval blockade, but the comprehensive termination of all US sanctions will only come as part of the final deal within 60 days, creating a clear sequence of benefits tied to continued compliance. With provisions addressing Lebanon’s sovereignty, the Strait of Hormuz, and dialogue with Gulf states, the MoU signals a broader effort to stabilize the entire region beyond just the bilateral US-Iran relationship.

What Happens Next?

The 60-day clock is now ticking. Implementation of the initial provisions—ceasefire, naval de-escalation, maritime passage, oil waivers, and access to frozen assets—must begin before negotiations on the final deal can formally start. The final agreement, if reached, will be enshrined in a binding UN Security Council resolution, giving it international legal weight and making it more durable against future political changes in either country. All eyes are now on Friday’s formal signing ceremony in Switzerland and the subsequent negotiations that will determine whether this diplomatic breakthrough leads to a lasting transformation of US-Iran relations or proves to be another temporary pause in a long history of hostility. The coming weeks will test whether both sides can translate the framework of the MOU into a comprehensive agreement that addresses the full range of issues dividing them, from nuclear enrichment to regional influence to economic integration.

US-Iran MoU Details Emerge: $300bn Reconstruction Aid, Sanctions Relief in 14-Point Deal