The United States and Iran on Monday signed a memorandum of understanding (MoU) aimed at ending a nearly four-month war that disrupted global energy supplies, pushed oil prices higher and raised fears of a wider conflict across the Middle East, reported Reuters quoting senior US officials.

The news agency reported that the agreement had already been digitally signed by the President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf, who is leading Tehran’s negotiating team. A formal signing ceremony is scheduled to take place in Geneva, Switzerland, on Friday.

Meanwhile, Iran’s Foreign Ministry spokesman Esmail Baghaei, in a press conference with an Iranian media outlet, suggested that Iran had received commitments from the United States that it would eventually access frozen assets and secure the lifting of sanctions, but that the timeline was not clear. “Alongside nuclear-related matters, these are subjects that will be discussed immediately after the signing of the memorandum,” he said, according to state media.

The breakthrough came after over two months of negotiations. Both sides described the agreement as a framework for peace, although several major issues remain unresolved and will require further talks.

Key points of US-Iran memorandum of understanding (MoU) agreed so far

  • The United States and Iran have agreed to a framework aimed at ending the nearly four-month conflict.
  • A formal signing ceremony is expected to take place in Geneva, Switzerland, on Friday.
  • The Strait of Hormuz will gradually reopen, with shipping traffic expected to increase in phases.
  • The agreement provides for a 60-day negotiation period under a ceasefire framework.
  • Future negotiations will focus on Iran’s nuclear program and related security concerns.
  • Talks will address the future of Iran’s highly enriched uranium stockpiles.
  • Iran’s ballistic missile program will be part of follow-up negotiations.
  • Discussions on frozen Iranian assets have been postponed to a later stage.
  • The United States has indicated that sanctions relief could be granted if Iran complies with the terms of the agreement.
  • Iran could gain access to a reconstruction fund worth up to $300 billion, financed by Gulf Arab states, if it meets its commitments.
  • Tehran has said the agreement must include an end to hostilities on all fronts, including in Lebanon.
  • US officials expect commercial shipping through the Strait of Hormuz to begin increasing immediately.
  • The full text of the agreement is expected to be released after the formal signing ceremony.
  • Additional details on implementation, verification measures and compliance mechanisms are expected to emerge during the negotiation period.

What US said about the agreement

A senior US official told Reuters that shipping activity through the Strait of Hormuz would begin increasing immediately. “You will see a significant increase in traffic in the Strait of Hormuz, actually starting already, and that will ramp up slowly over time,” the official said.

The official added, “We probably won’t return to normal in two weeks, but we will see a significant increase in Strait traffic.” The official also said the detailed terms of the agreement could become public within the next 24 to 48 hours.

What did Trump say after the deal?

Trump said that an agreement with Iran has already been signed and that the text of the deal will be released after a formal signing ceremony scheduled for Friday. He also said the Strait of Hormuz, one of the world’s most important oil shipping routes, will be fully reopened by the end of the week.

Trump made the remarks in France while appearing alongside French President Emmanuel Macron ahead of the Group of Seven (G7) summit in Evian.

ALSO READ

The announcement marked another major step toward ending the conflict between the United States and Iran, a war that has disrupted global energy markets and raised fears of a wider regional crisis.

“The deal’s all signed. And the strait is already partially opened, as you know,” Trump told reporters shortly after arriving in France.

“On Friday, it’ll be completely open,” he added. Although a formal signing ceremony is expected to take place in Geneva on Friday, Trump said the agreement itself has already been completed.

His comments came after Vice President JD Vance said earlier on Monday that the agreement was signed digitally on Sunday.

Vance also said no money had been released to Iran as part of the arrangement.

The exact contents of the memorandum of understanding have not yet been made public. However, officials from both countries have indicated that the framework is designed to end hostilities and reopen the Strait of Hormuz.

Trump said that the text of the agreement would become public soon. He said the document would likely be released shortly after the formal signing ceremony. “Probably pretty soon. I would say sometime after Friday,” Trump said. “I think sometime in the very near future,” he added. 

The release of the document is expected to provide details on the commitments made by both sides and the timeline for implementing the agreement.

ALSO READ

According to Trump, shipping activity at Strait of Hormuz has already started to return. He said the route is partially open and will be completely accessible by Friday.

A full reopening of the strait would ease pressure on global energy markets and help restore normal shipping operations.

Trump said that any sanctions relief for Iran would depend on Tehran’s actions after the agreement takes effect. He made clear that the process would be based on Iranian compliance with the terms of the deal.

“It’s really a behavioral thing. If they do what they’re supposed to do, that starts taking effect,” Trump said.

What details of the Iran deal remain unclear?

Although both sides announced the agreement, many key issues remain unresolved. The leaders have not publicly detailed how Iran’s highly enriched uranium will be handled. Questions also remain over Tehran’s ballistic missile program and frozen Iranian assets.

These subjects are expected to become part of complex negotiations during a 60-day period outlined in the framework. The agreement therefore marks the start of a diplomatic process rather than a final settlement.

Vice President JD Vance earlier suggested that Iran could receive major economic assistance if it fulfills its commitments. Speaking to CBS News, Vance said the process could eventually provide Iran access to a reconstruction fund worth up to $300 billion.

The money would come from Gulf Arab countries and would depend on Iran giving up nuclear material and meeting other obligations.

Why could Lebanon become a major obstacle?

One of the biggest challenges facing the agreement lies in Lebanon. Iran has insisted that the framework requires an end to hostilities across all fronts, including Lebanon, where Israel has been fighting Hezbollah, reported Reuters.

Israel was not involved in the negotiations that produced the agreement and has signaled that it may continue military operations against Hezbollah. 

Shortly after the agreement was announced, an Israeli drone struck a vehicle in the southern Lebanese town of Kfar Tebnit, killing the driver, according to Lebanese state media. 

What Iran said about Lebanon

Iranian Foreign Minister Abbas Araqchi said a complete halt to Israeli attacks in Lebanon is necessary. He wrote on Telegram that the United States bears responsibility for implementing the framework agreement.

Hezbollah welcomed the deal and said the inclusion of Lebanon showed Iran’s commitment to ending the conflict and protecting Lebanon’s interests.

Israeli Prime Minister Benjamin Netanyahu has not yet commented publicly on the agreement. However, Israeli Defence Minister Israel Katz said Israel would remain “indefinitely” in areas of southern Lebanon under its control to eliminate what it considers security threats.

Privately, Israeli officials voiced strong opposition to the agreement. One senior Israeli official told Reuters, “terrible for Israel.” The official said that assessment was widely shared within the Israeli government.

The formal signing ceremony is expected in Geneva on Friday. If the agreement survives the coming days, the Strait of Hormuz could reopen fully and negotiations would begin on more difficult issues such as Iran’s nuclear program, sanctions relief, reconstruction funding and regional security arrangements.