Overview
- The memorandum, signed Wednesday, June 17, commits both governments to an immediate ceasefire and gives them 60 days to negotiate a final treaty that could be extended by mutual consent.
- Under the pact Iran will allow free commercial passage through the Strait of Hormuz for 60 days while the United States will lift a naval blockade within 30 days and issue licenses for Iranian oil exports.
- The text requires Iran to reaffirm it will not seek nuclear weapons and to dilute some enriched uranium in place under International Atomic Energy Agency supervision as part of the follow-on talks.
- Washington and Tehran also agreed to a framework for releasing frozen Iranian assets and to work with regional partners on a proposed $300 billion private-led reconstruction and development plan.
- Major implementation risks remain because Israel and armed groups such as Hezbollah are not party to the memorandum, Iran has signaled it may charge transit fees after 60 days, and detailed verification and Security Council ratification are still to be resolved.