The United States on June 18 released the full text of a Memorandum of Understanding (MOU) jointly agreed with the Islamic Republic of Iran, declaring an immediate and permanent halt to military operations on all fronts, including in Lebanon. The 14-paragraph document, dated but with the day left unspecified, commits both sides to respect each other’s sovereignty and territorial integrity, and to refrain from the threat or use of force.

Under the MOU, Washington will begin withdrawing its naval blockade within 30 days and will remove forces from areas near Iran once a final deal is sealed. In parallel, Tehran will use its best efforts to ensure safe, toll-free passage for commercial vessels through the Strait of Hormuz, and will clear mines and other military obstacles to restore traffic within a month. Iran will also launch a dialogue with Oman and other Persian Gulf littoral states to define future maritime administration, consistent with international law.

The agreement pledges a reconstruction and economic development plan for Iran worth at least $300 billion, with details to be finalized during 60-day negotiations. The US undertakes to terminate all sanctions—UN Security Council resolutions, IAEA board measures and unilateral American penalties—on a schedule to be set in the final deal. Immediate steps include US Treasury waivers for Iranian crude exports and associated financial services, and the full release of frozen Iranian assets for use by the Central Bank. Iran, for its part, reaffirms it will not acquire or develop nuclear weapons and agrees to down-blend its stockpiled enriched material under IAEA supervision.

Pending the final agreement, a status quo will hold: Iran keeps its nuclear programme unchanged while the US imposes no new sanctions and sends no additional forces to the region. The negotiations, which can be extended by mutual consent, will tackle outstanding paragraphs, and the final deal will be endorsed by a binding UN Security Council resolution. For the Global South, the pact could stabilize energy transit, lower regional conflict risks and unlock significant economic opportunities, though implementation hinges on the complex talks ahead.