The memorandum of understanding (MOU) between the US and Iran, which, according to the President of the United States, Donald Trump, could be signed soon, provides for the immediate opening of the Strait of Hormuz without tolls and the provision of a suspension of sanctions on Iran based on compliance.

According to Axios, the MOU also includes a framework for addressing Iran’s stockpiles of enriched uranium, while any action on the nuclear program will require a second, more detailed agreement.

A diplomat from one of the mediating countries confirmed that “the US and Iran have agreed on the text of the agreement,” although final approval remains open. According to reports, the agreement has been approved at a high level in Iran, but probably not by the Supreme Leader, Mojtaba Khamenei.

Trump expects a signing ceremony over the weekend, while a spokesperson for the Iranian Ministry of Foreign Affairs stated that “Tehran has not yet taken a final decision.”

Negotiations and mediation

The agreement was reached after hours of negotiations between the Qatari mediator Ali Al-Taghawandi and Iranian Foreign Minister Abbas Araghchi. During talks in Tehran, Al-Taghawandi repeatedly spoke by phone with Trump envoys.

Trump’s announcement of the completion of the agreement surprised Israeli Prime Minister Benjamin Netanyahu, who was trying to gather information from close aides of the US administration.

Iran’s commitments on the nuclear program

According to the MOU, Iran commits to never acquire nuclear weapons and to resolve issues surrounding enriched uranium. A senior US official stated that one of the options is the partial dilution of enriched uranium under the supervision of UN inspectors. Each step will take place only if a second agreement is reached, which remains uncertain.

Opening of the Strait and sanctions

The MOU provides for the immediate opening of the Strait of Hormuz without tolls, with a return to pre-war flows within 30 days, while at the same time the US embargo will be lifted. The temporary suspension of sanctions will last 60 days to allow oil sales, and will be extended as Iran complies and shows “good faith” in the next negotiations.

Concerns over frozen funds

At the same time, it remains unclear what will happen to the billions of dollars of Iranian funds frozen abroad. Iran is requesting immediate access to part of these funds, while the US insists on gradual release based on compliance. Discussions on access to part of the funds in Qatar for humanitarian purposes are ongoing.

Next step

The agreement, mediated by Qatar and Pakistan, may be named the “Islamabad Agreement” if both sides ultimately agree to sign. “We are working with all parties to finalize the last details and set a date for the signing ceremony,” said a diplomat from one of the mediating countries.