WASHINGTON – A memorandum of understanding between the United States and Iran, the text of which was released by the U.S. and published by The Hindu on 18 June 2026, maps out an immediate and permanent cessation of hostilities across all fronts, including Lebanon, and sets a 60-day window to negotiate a comprehensive final deal. The two sides pledge to respect each other’s sovereignty, refrain from threats or use of force, and safeguard Lebanon’s territorial integrity.

Washington commits to lifting its naval blockade against Iran within 30 days, gradually restoring pre-war commercial traffic volumes. It will also withdraw its forces from Iran’s vicinity within 30 days after the final accord is sealed. In a parallel step, the US will terminate all unilateral and United Nations Security Council sanctions, as well as IAEA Board of Governors resolutions, according to an agreed schedule in the final deal. A reconstruction and economic development plan worth at least 300 billion dollars will be developed with regional partners, with all necessary financial waivers and licences guaranteed by the US Treasury.

Tehran, for its part, agrees to facilitate the safe, charge-free passage of commercial vessels through the Strait of Hormuz for an initial 60 days, with full restoration of traffic within 30 days after demining and removal of obstacles. Iran will engage Oman and other Gulf littoral states to define future maritime administration of the strait in accordance with international law. On the nuclear file, Iran reaffirms it will not seek or develop nuclear weapons and will resolve the disposition of stockpiled enriched material through on-site down-blending under IAEA supervision, pending a mutually agreed framework for its enrichment needs.

The US will immediately issue waivers for Iranian crude oil exports and associated banking, insurance and transport services, and release frozen Iranian funds for use by Tehran’s central bank. Both sides agree to maintain the status quo—Iran preserves its current nuclear posture while the US refrains from new sanctions or additional troop deployments—pending the final deal. The final deal will subsequently be endorsed by a binding UNSC resolution.

For the Global South, the accord offers a potential stabiliser for energy markets unsettled by months of military confrontation. The removal of sanctions and unblocking of Hormuz traffic could ease crude supply fears and cool price volatility, benefiting oil-importing developing nations. Equally significant, the framework demonstrates that direct de-escalation between major powers is possible through phased, verifiable commitments, providing a template for conflict resolution in other volatile theatres.