U.S. and Iran Near Agreement Through Memorandum of Understanding

Senior U.S. officials shared a draft memorandum of understanding (MOU) with Iran on Wednesday. The exchange occurred after several days of secrecy. They requested anonymity, as Iran had yet to release the document before a formal signing scheduled for Friday.

The officials described the draft’s content. It sets a new ‘minimum’ standard for reducing highly enriched Iranian uranium. It also ensures Lebanon’s ‘territorial integrity’ following Israeli strikes against Hezbollah targets. In exchange, the U.S. will waive some sanctions against Iran once the deal is complete.

The draft allows toll-free passage through the Strait of Hormuz for 60 days. Fees might be imposed afterward, as noted by the officials.

Iran’s Foreign Ministry announced that Presidents Donald Trump and Masoud Pezeshkian could sign the deal. This would mark a milestone for the two nations, which cut ties in 1980 after the U.S. Embassy hostage situation in Tehran.

Prior reports suggested Vice President JD Vance might attend the signing. However, at the G7 Summit conclusion in Paris, President Trump stated he ‘might’ attend. He remarked, “I might. But this is a memorandum of understanding. It might not be the kind of document I should be signing. If it doesn’t work out, I’m blaming JD.”

The 14-Point Draft Agreement

The Islamabad Memorandum of Understanding outlines several commitments between the U.S. and Iran. Both countries agreed on these points:

• They declared the immediate, permanent end of military operations on all fronts, including Lebanon.
• Each nation agreed to respect the other’s sovereignty and non-interference in internal affairs.
• A final deal must be negotiated within 60 days, extendable with mutual consent.
• The U.S. will end its naval blockade within 30 days post-signing.
• Iran will allow toll-free passage for commercial vessels for 60 days starting from the signing.
• A plan involving at least USD 300 billion for Iran’s reconstruction and economic development will be developed.
• The U.S. will terminate all types of sanctions, coordinated with the final deal’s schedule.
• Iran reaffirms not procuring nuclear weapons, and will resolve enriched material disposition with IAEA oversight.
• Both countries will maintain their current nuclear program and sanction status quo pending the final deal.
• The U.S. will issue waivers for Iranian oil exports and related services upon signing the MOU.
• Frozen Iranian funds will be made fully usable for designated payments post-implementation.
• An executive mechanism for MOU monitoring will be established.

Finally, negotiations on the remaining paragraphs will start after the MOU signing, with a binding UNSC resolution to endorse the final deal.

This article is part of breaking news coverage. Further updates are forthcoming.

Additional reporting by the Associated Press contributed to this story.