
4 min readUpdated: Jun 18, 2026 09:00 AM IST
US President Donald Trump formally signed an agreement with his Iranian counterpart Masoud Pezeshkian to end the war in Gulf on Wednesday.
Both sides confirmed that the deal is in effect, ending the hostilities on all fronts and reopening the Strait of Hormuz.
A senior US official read out the 14-point agreement, termed as a Memorandum of Understanding, that calls for Iran to dilute its stock of enriched uranium and waives US sanctions on the country.
Here’s what the Memorandum of Understanding says
# An end to conflict ‘on all fronts’
The US and Iran, along with their allies, declared an “immediate and permanent” termination of military operations on “all fronts” – including Lebanon. They also agreed not to start any war against each other, and abstain from threatening or using any kind of force on each other, making sure that the “territorial integrity and sovereignty of Lebanon” is maintained. :Final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph,” the text of the deal said.
# Respect for ‘internal affairs’
The United States of America and the Islamic Republic of Iran, out of respect for each other’s sovereignty and territorial integrity, would refrain from interfering in the internal affairs of one another.
# 60-day deadline for final deal
Both countries committed to striking the final deal within a 60-day deadline, which might be extended only with mutual consent.
# US blockade to end
The US would start removing its naval blockade and any hindrances imposed on Iranian ports. The naval blockade will fully end within 30 days. The traffic on the Gulf waters, during this period, will be in proportion to the number of pre-war traffic being restored by Iran. The US would also remove its forces close to the Islamic Republic of Iran within 30 days.
# Strait of Hormuz
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Iran will “make arrangements using its best efforts” to allow safe movement of commercial vessels through the Strait of Hormuz, with zero charge.
# US $300 billion rebuild promise
The US, along with the regional partners, agreed to a plan for the “reconstruction and economic development” of Iran with a fund of at least $300 billion. The framework of its implementation will be finalised in the next 60 days. “All required licenses, waivers and permissions needed for the relevant financial transactions will be granted by the United States of America,” the text of the deal states.
# Lifting of sanctions on Iran
The US promised to lift all kinds of sanctions imposed on Iran, “including United Nations Security Council resolutions, i.e. IAEA [International Atomic Energy Agency] Board of Governors resolutions and all unilateral U.S. sanctions” in a schedule to be agreed upon as part of the final deal.
# Iran’s ‘no nuclear weapons’ promise
The Islamic Republic of Iran promised to not “procure or develop” nuclear weapons. The US and Iran agreed to resolve “the disposition of stockpiled enriched material, pursuant to a mechanism that will be mutually agreed upon” under the supervision of the IAEA. The two nations will also discuss the issue of enrichment and other matters related to Iran’s nuclear needs in the final deal. The final agreement will confirm the provisions of this point.
# Both countries to maintain status quo
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Acknowledging the importance of the above two points, the US and Iran will maintain the status quo, pending the final deal. Iran will maintain the current status quo in the nuclear programme agreement, while the US will refrain from imposing new sanctions and will not deploy additional forces in the proximity of Iran.
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