The memorandum of understanding with Iran to end the war, reopen the Strait of Hormuz, and restrain Tehran’s nuclear ambitions was revealed by senior U.S. officials on June 17.
The deal, which was read by a senior U.S. official in a call with reporters, requires Iran to immediately reopen the Strait of Hormuz without tolls during a 60-day period of negotiations.
Iran has also agreed to, at a minimum, downblend its stockpile of enriched uranium. The deal allows for potential future economic relief if Iran responds favorably to the United States’ demands.
The agreement would also allow Iran to sell its oil without restrictions. The deal provides for a 60-day window for negotiations on Iran’s nuclear program.
Additionally, once all parties sign and ratify the memorandum of understanding, the United States will begin removing its naval blockade around Iran, one official said.
The memorandum of understanding calls for the United States, along with regional partners, to develop a $300 million fund for Iran’s reconstruction and economic development after the damage incurred by the war, a U.S. official said.
The plan won’t be implemented until after 60 days, and the United States will grant any licenses, waivers, or permissions required for the relevant financial transactions, according to the deal.
A U.S. official explained that the United States will not be directly funneling money into the reconstruction fund, but will rather permit sanctions relief if the Iranians comply with the deal.
This could take the form of a nation, such as the United Arab Emirates, building a power plant in Iran, the official added.
Speaking at the annual G7 summit in France on Wednesday, U.S. President Donald Trump said the memorandum will likely be signed by Thursday or Friday.
“We’re going to most likely sign a deal. [Iran wants] to sign a deal, and they’ve been acting very appropriately,” he said.
Trump warned that if negotiations collapse within 60 days, or if Iran doesn’t fulfill its end of the deal, “we go back to bombing.”