Full details of the US-Iran Agreement

The United States and Iran are preparing to sign a memorandum of understanding on Friday that would formally launch a 60-day negotiating track toward a final agreement to end the current war, according to a copy of the document reportedly obtained by Al Arabiya English.

The draft, if confirmed in its present form, would represent one of the most consequential diplomatic arrangements between Washington and Tehran in decades. It links an immediate cessation of hostilities to a wider settlement covering the Lebanese front, maritime security in the Gulf, Iran’s oil exports, frozen Iranian assets, sanctions relief, nuclear negotiations, and a major reconstruction and development package for Iran.

According to the document, Iran and the United States, along with their respective allies participating in the current war, would declare an immediate and permanent end to the war on all fronts upon the signing of the memorandum. The provision specifically includes Lebanon, turning the agreement from a narrow US-Iran de-escalation into a wider regional ceasefire framework.

The text also commits both sides to refrain from any future hostile action against each other, including the threat or use of force. It further states that Washington and Tehran would respect each other’s sovereignty and territorial integrity and refrain from interference in each other’s domestic affairs.

The MoU provides for negotiations toward a final agreement within a maximum of 60 days, with an extension possible by mutual consent. That period would be used to settle the remaining political, financial, military and nuclear questions that the memorandum leaves for a final accord.

One of the central provisions concerns maritime access around Iran and the Strait of Hormuz. The United States would lift the naval blockade imposed on Iran immediately after the MoU is signed, prevent any interference with Iranian shipping, and restore navigation to full capacity within 30 days. Iran, for its part, would take immediate steps to resume commercial shipping between the Gulf and the Sea of Oman, with traffic returning to pre-war levels within the same 30-day window, taking into account the removal of technical obstacles and the neutralization of mines on the Iranian side.

The document also states that the United States would withdraw its forces from surrounding areas within 30 days of the final agreement. This clause is likely to become one of the most politically sensitive sections of the negotiations, given its implications for the Gulf security architecture and for US allies in the region.

The economic provisions are among the most expansive parts of the memorandum. Washington, in cooperation with its regional partners, would prepare a mutually agreed comprehensive plan for the rehabilitation and development of Iran’s economy, with financing of at least $300 billion. The implementation mechanism for that plan would be negotiated as part of the final agreement during the 60-day period.

The MoU also commits the United States to ending all sanctions currently imposed on Iran according to a timeline to be agreed in the final accord. The language covers UN Security Council resolutions, decisions by the International Atomic Energy Agency’s Board of Governors, and all unilateral US sanctions, including primary and secondary sanctions.

Before the full sanctions-lifting process is completed, the US Treasury Department would issue waivers allowing the export of Iranian crude oil, petrochemical products and derivatives, along with all associated services, including banking, insurance and shipping. This provision would reopen a major revenue channel for Tehran during the interim period and create an early economic stake in the success of the negotiations.

The memorandum further states that, in light of progress toward the final agreement, Iranian funds and assets that are frozen or restricted abroad would be released and made fully available. The text says those funds, whether held in primary accounts or transferred elsewhere, would be available for final payments determined by the Central Bank of Iran. Washington would issue the necessary permissions and licenses to enable those transactions.

On the nuclear file, Iran reaffirms that it will never produce nuclear weapons. The memorandum leaves the most difficult nuclear questions to the final agreement, stating that the fate of enriched materials and other agreed nuclear matters, including Iran’s nuclear needs, will be addressed adequately in the final accord.

Until that final agreement is reached, the MoU preserves the status quo: Iran would maintain the current state of its nuclear program, while the United States would refrain from imposing new sanctions or strengthening its military presence in the region.

The wording suggests that the memorandum is designed to freeze escalation first and resolve the most contested issues later. This sequencing gives both sides immediate political and economic incentives, while postponing the hardest disputes over enrichment, stockpiles, inspections, sanctions architecture and regional enforcement.

The agreement also includes an implementation mechanism to supervise the application of the final accord and ensure future compliance. After the MoU is signed, and after Iran receives guarantees that key provisions on maritime access, force withdrawal, sanctions and oil waivers have begun to be implemented, the two sides would enter negotiations on the remaining articles.

The final agreement, according to the document, would be endorsed through a binding UN Security Council resolution. That step would elevate the settlement from a bilateral understanding into an internationally recognized framework, making its reversal more costly for future administrations.

The leaked text immediately raises several political questions. In Washington, any arrangement involving sanctions relief, oil waivers, frozen assets and large-scale financing for Iran is likely to face scrutiny from congressional Republicans, pro-Israel lawmakers, and former Trump-era Iran hawks. In Tehran, the document can be framed as a recognition of Iranian endurance and a pathway to economic reopening after months of war and blockade.

The Lebanon clause may prove equally difficult. By including all fronts, the memorandum places the Israeli-Hezbollah theater inside a US-Iran framework, even as Israel has signaled its intention to preserve military freedom of action in Lebanon and other arenas. That tension may become an early test of the MoU’s enforcement mechanism.

The most important unresolved question remains whether the final agreement can convert a broad ceasefire formula into a durable political settlement. The memorandum offers Iran relief from blockade, a route back to energy markets, eventual sanctions termination, possible access to frozen assets, and a development package of historic scale. It offers the United States a freeze in hostilities, a reopening of maritime routes, a nuclear pledge from Tehran, and a 60-day negotiating window to seek wider constraints.

The Friday signing will therefore mark the formal beginning of a high-risk diplomatic phase. The MoU appears to stop the war first and defer the final shape of peace to negotiations that will determine whether the region is entering a real settlement, or only a pause before the next confrontation.