Amid mixed reactions ranging from acclaim and anger to incredulity over the agreement signed between the US and Iran to end the war, US President Donald Trump defended the MoU, which gives greater weight to Iran's demands, and said that “there is nothing as smart as the market – and the market loves it”, arguing that it would rescue the world from slipping into depression.
Though the 14-point agreement contains many provisions favourable to Iran, including the lifting of sanctions, the end of the economic blockade and the release of frozen assets, Trump claimed victory and, in an attenuated tone, made remarks suggesting support for Iran's uranium enrichment for civilian use and its ballistic missile programme.
The 14-point Memorandum of Understanding, signed by Trump and Iranian President Masoud Pezeshkian, brought an immediate halt to hostilities and paved the way for the reopening of the Strait of Hormuz, the strategic waterway through which a substantial portion of the world’s energy supplies pass. The agreement also sets in motion negotiations for a final settlement to be concluded within 60 days.
While the US portrayed the accord as a major diplomatic achievement, critics in the US, Israel and among Republican hardliners viewed it as a remarkable retreat from the US’s long-held positions on Iran.
The document includes provisions for the gradual lifting of sanctions, the removal of restrictions on Iranian exports, the release of frozen Iranian assets and a US-backed reconstruction framework reportedly worth at least $300 billion.
The agreement, formally titled the Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran, contains the following 14 provisions:
• Permanent cessation of hostilities: The US, Iran and their respective allies agreed to an immediate and permanent end to military operations on all fronts, including Lebanon, and pledged not to threaten or use force against one another.
• Respect for sovereignty: Both countries committed themselves to respecting each other's sovereignty, territorial integrity and political independence, while refraining from interference in internal affairs.
• Sixty-day roadmap: The US and Iran agreed to conclude a comprehensive final agreement within 60 days, with any extension requiring mutual consent.
• End of the US naval blockade: The US agreed to remove its naval blockade and other restrictions affecting Iranian ports, while withdrawing forces positioned near Iran within 30 days.
• Reopening of the Strait of Hormuz: Iran undertook to ensure the safe passage of commercial shipping through the strategic waterway without imposing any charges.
• $300 billion reconstruction framework: The US and regional partners committed themselves to establishing a reconstruction and economic development programme for Iran worth at least $300 billion, with implementation details to be finalised during subsequent negotiations.
• Lifting of sanctions: The US agreed in principle to remove sanctions imposed on Iran, including measures linked to the United Nations Security Council, International Atomic Energy Agency resolutions and unilateral US sanctions.
• Iran's nuclear commitment: Tehran pledged not to develop or acquire nuclear weapons. Both countries agreed to discuss the future of Iran's stockpile of enriched uranium under International Atomic Energy Agency supervision and negotiate arrangements concerning civilian nuclear activities.
• Maintenance of the status quo during negotiations: Iran will maintain the current status of its nuclear programme while negotiations continue, and the US will refrain from imposing new sanctions or deploying additional military forces near Iranian territory.
• Waivers for Iranian oil exports: Until sanctions are fully lifted, the US Treasury Department will issue waivers enabling Iranian crude oil, petroleum products and associated services, including transportation, insurance and banking transactions, to continue.
• Release of frozen Iranian assets: The US agreed to make Iranian frozen and restricted funds available and to provide the licences and authorisations required for their release under a mutually agreed mechanism.
• Implementation mechanism: Both sides agreed to establish an executive mechanism to monitor the implementation of the memorandum and ensure compliance with any final agreement.
• Commencement of final negotiations: Formal negotiations on a permanent settlement will begin once implementation starts on key provisions relating to the ceasefire, withdrawal measures, Hormuz reopening, export waivers and asset releases.
• UN Security Council endorsement: The final agreement will be submitted for endorsement through a binding United Nations Security Council resolution.
The agreement has already generated fierce controversy. Supporters described it as a pragmatic settlement that halted a dangerous conflict and restored confidence in global energy markets.
Critics, however, argued that Tehran had secured many of its longstanding demands, including sanctions relief, the removal of economic restrictions, access to frozen assets and a substantial reconstruction package.
Iranian officials portrayed the memorandum as evidence that American pressure had failed to achieve its objectives. The agreement was also welcomed by Iran-backed groups in the region, a development likely to intensify criticism from Israel and Republican hardliners who had urged Trump not to compromise with Tehran.
As preparations begin for a formal ceremony in Geneva, the memorandum has emerged as one of the most consequential and contentious diplomatic initiatives of Trump's presidency, with its implications expected to reverberate far beyond the battlefields it seeks to silence.