The U.S. and Iran have signed a 14-point memorandum of understanding (MoU), marking the first formal agreement between the two countries since the conflict began.
The MoU includes plans to reopen the Strait of Hormuz and begins a 60-day negotiation process on issues including sanctions and Iran's nuclear program.
The agreement was signed ahead of implementation talks scheduled to take place in Switzerland on Friday between U.S, Iranian and regional representatives.
So, what’s in the deal?
Background
The U.S. and Israel launched joint strikes on Iran on 28 February, killing Iranian Supreme Leader Ali Khamenei.
Iran responded with retaliatory strikes on U.S-linked defence sitesand by closing the Strait of Hormuz, a key shipping passage. As a result, oil prices almost doubled from February to April, driving global fuel costs.
In April, the U.S. and Iran agreed to a ceasefire. However, within weeks both countries accused the other of breaching the agreement by exchanging strikes and blockading the Strait.
Peace deal
On Sunday (U.S. time), Donald Trump announced the deal was “now complete”.
Leaders from the U.S, Iran and several mediating countries are still expected to meet in Switzerland on Friday to discuss how the agreement will be implemented.
The formal signing took place earlier than expected. On Wednesday (local time), Trump and Iranian President Masoud Pezeshkian signed the 14-point MoU remotely.
Trump signed a copy at the Palace of Versailles during the G7 summit before it was sent to Iran for Pezeshkian's signature.
Key parts of the agreement include:
- Immediate and permanent end to the war, including in Lebanon.
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- The full reopening of the Strait of Hormuz within 30 days.
- U.S. to lift sanctions on Iran.
- Iranian commitment to never produce nuclear weapons.
“We reached an agreement with Iran that achieves everything we set out to accomplish, everything, and much more... If we didn't do this deal, we could have dropped more bombs” – U.S. President Donald Trump.
Iranian Foreign Affairs Ministry Spokesperson Esmaeil Baghaei said: “The fact that we have signed an agreement to end the war at this stage does not mean we have forgotten the past or abandoned the costly lessons we have learned.”
Israel
On Monday (Israel time), Prime Minister Benjamin Netanyahu said: “We have fended off an immediate threat of annihilation.”
Wednesday’s MoU commits Iran, the U.S. and their allies to ending hostilities across the region, including in Lebanon.
Israel has not publicly endorsed the agreement. Reuters reported that senior Israeli officials have privately criticised the deal, with one describing it as “terrible for Israel”.
What’s next?
The MoU applies for the next 60 days, during which the U.S. and Iranhave committed to negotiating a final agreement.
The 60-day window can be extended if both sides agree.
Representatives from the U.S., Iran and mediators including Pakistanand Qatar are expected to meet in Switzerland on Friday to discuss howthe agreement will be implemented.
Swiss authorities have imposed a temporary no-fly zone over the meeting site amid tight security.
