A Trump administration official read portions of the proposed U.S.-Iran memorandum of understanding to reporters, detailing provisions on the war, Lebanon, oil exports, sanctions relief, frozen assets, the Strait of Hormuz and future nuclear negotiations.
By yourNEWS Media Newsroom
The Trump administration publicly outlined major provisions of its proposed memorandum of understanding with Iran, revealing a framework that would immediately halt military operations, restore Iranian oil exports, begin lifting restrictions on frozen funds and open a 60-day negotiating period for a final nuclear agreement.
A Trump administration official read the terms of the agreement to reporters Wednesday, according to a transcript published by ABC News.
The document, titled the “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran,” addresses the current war, fighting in Lebanon, sanctions relief, the Strait of Hormuz, Iranian oil exports, frozen assets and Tehran’s nuclear program.
The agreement begins by declaring an “immediate and permanent termination of military operations on all fronts, including in Lebanon.” It says the United States, Iran and their allies in the current war would undertake not to initiate war or military operations against each other and would refrain from threats or the use of force.
The first paragraph also includes language on “ensuring the territorial integrity and sovereignty of Lebanon,” while stating that a final deal would confirm the permanent end of the war “on all fronts, including in Lebanon.”
The memorandum also requires the United States and Iran to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.
The two sides would commit to negotiating a final agreement within 60 days. That timeline could be extended by mutual consent.
Under the proposal, the United States would begin removing its naval blockade and “any disturbances or impediments” against Iran immediately after the memorandum is signed. The agreement says Washington would fully end the naval blockade within 30 days.
During that period, commercial vessel traffic would be restored by Iran in proportion to pre-war levels. The agreement also states that the United States would remove its forces from the proximity of Iran within 30 days after a final deal.
The Strait of Hormuz provisions call for Iran to use its “best efforts” to ensure safe passage of commercial vessels without charge for 60 days only. Commercial vessel traffic would start immediately, while technical and military obstacles, including mines, would be removed within 30 days.
The memorandum says Iran will hold talks with Oman to define the future administration and maritime services in the Strait of Hormuz, in consultation with other Persian Gulf oil states, consistent with international law and the sovereign rights of coastal states.
One of the most scrutinized provisions concerns reconstruction and economic development. The memorandum says the United States, working with regional partners, will develop a “definitive, mutually agreed plan” worth at least $300 billion for Iran’s reconstruction and economic development.
The mechanism for that plan would be finalized as part of the final agreement within 60 days. The memorandum says all licenses, waivers and permissions needed for related financial transactions would be granted by the United States.
The sanctions section says the United States would terminate “all types of sanctions” against Iran, including United Nations Security Council resolutions, International Atomic Energy Agency Board of Governors resolutions and all unilateral U.S. sanctions, both primary and secondary. The timing would be determined through an agreed schedule in the final deal.
The nuclear section states that Iran reaffirms it will not procure or develop nuclear weapons. The two sides would resolve the disposition of Iran’s enriched uranium stockpile through a mutually agreed mechanism, with the minimum methodology being on-site down-blending under IAEA supervision.
The agreement also says the United States and Iran will discuss enrichment and other matters tied to Iran’s nuclear needs as part of a satisfactory framework in the final deal.
Until a final agreement is reached, both sides would maintain the status quo. Iran would maintain the current status of its nuclear program, while the United States would not impose new sanctions or deploy additional forces in the region.
The memorandum also commits the U.S. Treasury Department to immediately issue waivers for the export of Iranian crude oil, petroleum products and derivatives after the agreement is signed. Those waivers would also cover associated services, including banking transactions, insurance and transportation.
U.S. officials defended that provision during a call with reporters, saying the oil waivers are the only major benefit Iran would receive before a final agreement. Officials argued the waivers would increase transparency into Iranian oil sales while helping reduce global energy prices.
The agreement also calls for frozen or restricted Iranian funds and assets to be made fully available for use after implementation of the memorandum. The two sides would negotiate procedures for releasing the funds, which could be used for payments to any ultimate beneficiary designated by Iran’s central bank. The United States would issue the necessary licenses and authorizations.
The memorandum further calls for an executive mechanism to monitor implementation of the agreement and future compliance with a final deal.
After the memorandum is signed, and after implementation begins on the provisions involving termination of military operations, the naval blockade, vessel passage, oil export waivers and frozen assets, the United States and Iran would begin negotiations on the remaining issues.
The final agreement would be endorsed by a binding United Nations Security Council resolution.
Senior U.S. officials said the memorandum does not resolve the central nuclear dispute immediately. Instead, it creates a 60-day negotiating window to settle questions involving Iran’s enriched uranium stockpile, enrichment activities and future nuclear restrictions.
Officials said the minimum outcome would involve down-blending enriched material under IAEA supervision, but they acknowledged that key details remain unresolved.
The administration also stressed that broader sanctions relief would depend on Iranian compliance with future nuclear commitments.
The framework has already drawn debate because it allows Iranian oil exports to resume immediately while broader nuclear negotiations continue. Critics argue that Tehran would receive major economic benefits before making significant concessions. Administration officials counter that larger sanctions relief, reconstruction funding and long-term normalization would require a final deal and Iranian compliance.