What’s in the New U.S.-Iran Understanding: Sanctions Relief, Nuclear Talks, and a 60-Day Clock

A memorandum of understanding signed in Islamabad between the U.S. and the Islamic Republic of Iran was revealed this evening (Wednesday). The document, which includes 14 clauses, deals with a halt to military activity, the Iranian nuclear issue, broad economic relief, and the regulation of maritime traffic in the Persian Gulf and the Strait of Hormuz.

According to the first clause, the U.S. and Iran, together with their allies in the current war, are declaring an "immediate and permanent cessation of military activity on all fronts," including in Lebanon. In addition, both sides commit not to launch a future war or military action against one another, to refrain from threats and the use of force, and to preserve Lebanon’s sovereignty and territorial integrity.

At the same time, it was determined that Washington and Tehran will conduct negotiations aimed at reaching a final agreement within 60 days, with the possibility of extending the period by mutual consent. Until the final agreement is signed, both sides will commit to maintaining the status quo: Iran will not advance its nuclear program beyond its current state, and the U.S. will not impose new sanctions or deploy additional forces in the region.

On the economic front, the document includes a series of major American commitments. Once the memorandum of understanding takes effect, the U.S. will begin removing the naval blockade and every other restriction imposed on Iran, and will complete the move within 30 days. In addition, the U.S. Treasury Department is expected to issue waivers allowing the export of Iranian oil, petroleum products, and related services, including insurance, banking, and transportation.

It was also determined that the U.S., together with its regional partners, will work to formulate a plan worth at least $300 billion for Iran’s reconstruction and economic development. The implementation mechanism is supposed to be determined במסגרת the final agreement. In addition, Washington committed to working toward the removal of all sanctions imposed on Iran, including American sanctions, U.N. Security Council resolutions, and decisions of the International Atomic Energy Agency, according to a timetable to be agreed on later.

In the document, Iran reaffirms that it will neither acquire nor develop nuclear weapons. It was also agreed that the issue of the existing stockpile of enriched material will be handled through a joint mechanism, with the minimum option mentioned being dilution of the material at the site itself under the supervision of the International Atomic Energy Agency. In addition, the sides are expected to discuss the future of enrichment and other issues related to Iran’s nuclear program במסגרת the final agreement.

In the maritime arena, Iran committed to allowing the safe passage of commercial vessels from the Persian Gulf to the Gulf of Oman and in the opposite direction for 60 days, free of charge. It was also determined that commercial traffic in the area will gradually be restored and return to full volume within 30 days, subject to the removal of technical and military obstacles and to mine-clearing operations. In addition, it was claimed that Tehran will hold a dialogue with Oman regarding future governance arrangements and maritime services in the Strait of Hormuz.

The document also states that a dedicated implementation mechanism will be established to oversee the execution of the understandings and the sides’ compliance with their commitments going forward. After the initial implementation of some of the key clauses, the sides will begin negotiations on the remaining issues still left open. The final agreement, if reached, will be approved through a binding resolution of the U.N. Security Council.

Meanwhile, a senior American official commented on the contacts and said that "Iran has stated that it will destroy its stockpile of enriched uranium. If we reach a final deal and the Iranians 'behave nicely' — we will allow sanctions relief." At the same time, he stressed that "if we do not reach an agreement, President Trump will not hesitate to use the tools at his disposal. The meeting at the end of the week is critical for the continuation of the talks." According to him, "the memorandum of understanding has been signed, but both sides can withdraw from it before a binding deal is finalized."