US releases text of Iran ceasefire deal: Strait to open, $300bn fund, but nuclear issues and Israel deferred

What the document says

The memorandum of understanding, reached three days ago, was read aloud by a senior US official at the G7 summit in Evian-les-Bains on Wednesday. The text describes an “immediate and permanent end to the war on all fronts, including Lebanon,” and orders the US to lift its naval blockade within 30 days. Iran, for its part, will “immediately take steps” to reopen the Strait of Hormuz so that commercial traffic can return to pre-war volumes within 30 days.

The agreement is not a final peace treaty. President Trump himself underlined that point at the summit.

It's a memorandum of understanding. And if I don't like it, we'll go back to shooting at them, dropping bombs on their head.

Money and sanctions

Washington has committed to work with regional partners on a “comprehensive plan” for the economic rehabilitation of Iran, backed by at least $300 billion. The Trump administration also promised to waive sanctions on Iranian crude oil, petrochemicals and related services, including banking and insurance, even before a final deal is reached. Once a final accord is signed, the US says all unilateral sanctions, both primary and secondary, will be lifted on a schedule to be negotiated.

Iran also reaffirmed its long-standing statement that it will “never produce nuclear weapons” and agreed to dispose of or dilute stockpiled enriched uranium. The details of how this will happen are left to the 60-day negotiation period.

What is missing

The document does not settle the two most sensitive items. First, it says nothing about which party will control the Strait of Hormuz, even though Iran’s blocking of the waterway caused the biggest disruption to energy supplies in modern history. Second, Israel’s military operations in Lebanon, and its occupation of more than a fifth of Lebanese territory, are not addressed, because neither Lebanon nor Hezbollah is a signatory.

Trump repeatedly voiced frustration with Prime Minister Benjamin Netanyahu over Israel’s continuing attacks, but the draft has no mechanism to enforce a halt on that front.

Next steps

The memorandum is expected to be formally signed in Switzerland on Friday, an event that will start a 60-day clock for the two sides to conclude a final agreement. The hardest talks, on the future of Iran’s nuclear programme and the final status of sanctions, have been put off until that window. Some US officials are sceptical that a deal can be reached so quickly, given the months of failed negotiations before and during the war.

The Trump administration describes the framework as “performance-based”: Iran will only receive the economic benefits if it complies with its commitments. But critics, including commentators in the American and British press, call the text a list of capitulations that gives Tehran oil revenues and sanctions relief while postponing every difficult choice.