US and Iran set to sign memorandum ending war, removing blockade and pledging $300bn reconstruction fund
Washington released the full text of a 14-point memorandum with Tehran ahead of an expected signing on Friday in Lucerne, committing to an immediate and permanent ceasefire on all fronts, the lifting of the naval blockade and a fund of at least $300 billion for Iran's reconstruction.
What the memorandum contains
The memorandum of understanding, whose English version was released by US officials on 17 June, declares an immediate and permanent end to military operations on all fronts, including Lebanon. The two sides pledge not to threaten or use force against each other, to respect sovereignty and territorial integrity, and to refrain from interference in internal affairs. A final agreement is to be negotiated within 60 days, with the possibility of extension by mutual consent.
- Iranian supertankers cross the US naval blockade for the first time in two months, carrying 4.8 million barrels of crude.
- Expected signing of the memorandum of understanding in Lucerne, Switzerland.
- Ceasefire takes effect; US begins lifting the naval blockade.
- Deadline for complete end of the US naval blockade and restoration of full maritime traffic.
- Deadline for reaching the final agreement (60 days from signing).
- US forces to withdraw from areas near Iran (30 days after the final accord).
Naval blockade and Strait of Hormuz
Upon signing, the United States will begin lifting its naval blockade, which has been in place for about two months, and remove all impediments to Iranian shipping within 30 days. Ship traffic is to return to pre-war volumes. In parallel, Iran will take immediate steps to restore merchant traffic between the Persian Gulf and the Gulf of Oman, including mine clearance. The Strait of Hormuz is to remain toll‑free for 60 days, after which Iran will work with Oman and Gulf states on a long‑term arrangement.
Economic and sanctions relief
The US, together with regional partners, commits to a comprehensive plan for the rehabilitation and economic development of Iran, backed by at least $300 billion in financing. The implementation mechanism is to be defined within 60 days as part of the final deal. Washington also pledges to end all sanctions against Iran on a calendar to be agreed in the final agreement. The text adds that the US will make frozen Iranian funds fully available after implementation of the memorandum.
Nuclear commitments
Under the memorandum, Iran will never have nuclear weapons. The two countries agree to cooperate on removing enriched nuclear material through on‑site melting under IAEA supervision, according to excerpts reported by the BBC.
The run‑up to signing
President Donald Trump told a press conference at the G7 summit in Evian, France, that the signing could happen "perhaps tomorrow or Friday." The Swiss government had earlier announced that an in‑person signing would take place on Friday in Lucerne. Axios reported that mediators are considering a remote electronic signature as early as 17 June, which would bring the Strait of Hormuz provisions into force sooner. Meanwhile, TankerTrackers reported that at least two Iranian supertankers, Diona and Hero2, together carrying 3.8 million barrels of crude, as well as a third vessel with 1 million barrels, crossed the US blockade perimeter, marking Iran's first crude exports in two months.
It is not a final text, it is a protocol of agreement, and if I don't like it, if they don't behave well, we will start dropping bombs again right on their heads.
International reaction
The G7 leaders, in a statement, welcomed the agreement reached under Trump's leadership with the support of mediating countries, and said they stand ready to contribute to its implementation. They noted that a multinational defence initiative led by France and the United Kingdom can facilitate the resumption of maritime traffic in the Strait of Hormuz, protect merchant vessels and support verification of mine removal.
