Washington/Geneva, June 18, 2026 – The United States and Iran have formally signed a 14-point Memorandum of Understanding (MoU) aimed at ending months of hostilities, reopening the strategic Strait of Hormuz, and paving the way for broader negotiations on Tehran’s nuclear programme and sanctions relief.
According to U.S. officials, the agreement was initially signed electronically on Sunday by U.S. Vice President JD Vance and Iran’s chief negotiator, Mohammad Bagher Ghalibaf, before being formally endorsed on Wednesday by U.S. President Donald Trump and Iranian President Masoud Pezeshkian.
The document, titled the “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran,” establishes an immediate and permanent cessation of military operations between both countries and their allies. It also commits the parties to refrain from future threats or use of force against each other.
A central feature of the agreement is the launch of a 60-day negotiation process in Switzerland, where diplomats will seek to resolve outstanding issues and transform the interim accord into a comprehensive peace settlement.
Under the MoU, Iran has agreed to guarantee safe passage for commercial vessels through the Strait of Hormuz, one of the world’s most important oil shipping routes. In return, the United States will gradually remove restrictions affecting maritime traffic and ease measures linked to Iran’s ports. The move is expected to restore confidence in global energy markets following months of disruption.
The agreement also outlines a roadmap for phased sanctions relief. U.S. officials said Washington will support Iran’s economic recovery, including plans for reconstruction and investment initiatives reportedly valued at up to $300 billion. The United States is also expected to facilitate financial transactions and provide waivers on certain economic restrictions during negotiations.
On the nuclear issue, Iran reaffirmed its commitment not to develop nuclear weapons and agreed that future arrangements concerning enriched uranium and nuclear oversight would be handled under the supervision of the International Atomic Energy Agency (IAEA). However, crucial questions regarding uranium stockpiles, inspection mechanisms and the future structure of Iran’s nuclear programme have been deferred to the upcoming negotiations.
The MoU further provides for the establishment of a joint implementation mechanism to monitor compliance and oversee execution of the agreement. Officials said any final settlement reached after the negotiation period is expected to be backed by a binding resolution of the United Nations Security Council.
Despite the breakthrough, U.S. officials cautioned that the memorandum is only an interim arrangement and that either side could still withdraw if negotiations fail. The success of the accord, they said, will depend largely on how both countries sequence and implement their commitments over the coming weeks.
The agreement marks the most significant diplomatic engagement between Washington and Tehran in years and is being closely watched by global powers, energy markets and regional stakeholders seeking a lasting reduction in tensions across the Middle East.
