A senior Iranian official disclosed on Sunday, June 14, the full terms of a draft memorandum of understanding (MOU) with the United States, covering the reopening of the Strait of Hormuz, oil sanctions relief, the release of $25 billion in frozen assets, and limits on Tehran’s nuclear programme. The official told Reuters that a final agreement was to be negotiated within 60 days of both sides endorsing the memorandum, a signing ceremony for which had not been confirmed as of Sunday evening.
The disclosure came as the ceasefire between Iran and the United States, which both sides have acknowledged is under strain, remained formally in place. President Donald Trump told reporters on June 11 that he expected a signing ceremony over the weekend and believed Supreme Leader Ayatollah Mojtaba Khamenei had agreed to the framework. Iran’s Foreign Ministry spokesperson said Tehran had “not yet reached a final decision,” and an IRGC-affiliated source told the Tasnim news agency on Saturday that the final text of the agreement had not yet been completed or approved.
The Iranian official told Reuters that under the draft, Iran would immediately reopen the Strait of Hormuz to all commercial vessels upon the memorandum being signed, while the United States would lift its naval blockade on Iranian ports. The US blockade removal would begin immediately after the signing and be completed within 30 days.
Washington would also waive oil sanctions on Iran for a specified period, the official said, allowing Tehran to resume oil exports and receive related revenues. The United States has agreed not to impose any new sanctions on Iran until a final deal is reached. Following a final comprehensive agreement, all US and UN sanctions on Iran would be removed according to a mutually agreed timetable, the official said.
The memorandum further envisages the release of $25 billion in frozen Iranian assets through a combination of direct cash transfers, regional cooperation mechanisms, and financial credit arrangements, Reuters reported. The United States, in coordination with its regional allies, would also prepare a reconstruction and development plan for Iran, to be negotiated with Tehran and finalised within 60 days.
On the nuclear question, Iran would commit to neither producing nor acquiring nuclear weapons. Tehran would also maintain the current status of its nuclear programme by refraining from further uranium enrichment and the expansion of nuclear facilities until a comprehensive agreement is reached, according to the official. The United States, under the framework of a future comprehensive agreement, would permit Iran to dilute its stockpile of highly enriched uranium on Iranian soil rather than transferring it abroad — a notable departure from Washington’s earlier stated position.
The key issues related to Iran’s uranium enrichment activities and mechanisms for handling its stockpile of highly enriched uranium would be negotiated during the 60-day period following the signing and incorporated into a final agreement, the official said.
US Vice President JD Vance said talks between Washington and Tehran were making “good progress,” according to Euronews. A diplomat from one of the mediating countries told Axios that “the US and Iran have agreed on the text of a deal,” while acknowledging the deal still needed final sign-off. Trump had reportedly expected a signing ceremony earlier in June, but the White House had considered a deal imminent on several previous occasions over the past two months, only for talks to fall through.
Iran’s state news agency IRNA separately reported that the current draft agreement made no commitment regarding the transfer of control over the Strait of Hormuz, and that future administration of the waterway would be decided jointly by Iran and Oman, with no American role. That formulation differed from what the senior Iranian official described to Reuters, highlighting the degree to which official Iranian messaging on the deal’s contents remained inconsistent on Sunday.
Regional and Global Impact
The Strait of Hormuz carries approximately 20 percent of global oil trade. Its closure by Iran following the February 28 US-Israeli strikes has driven sustained disruption to energy markets and supply chains across Asia, Europe, and the Gulf. The prospect of its reopening under a signed MOU has been the central energy market concern since the war began.
The terms disclosed on Sunday are more favourable to Tehran on the nuclear question than the US had publicly sought for months. Trump originally demanded that Iran hand over its stockpiles of highly enriched uranium and initially floated a cap of as few as 500 to 1,500 centrifuges. Permitting Iran to dilute its enriched uranium inside the country rather than exporting or surrendering it represented a major concession, a shift that the Times of Israel reported Trump himself acknowledged when he said the deal “only conceptually” addressed Iran’s nuclear material.
Rafael Grossi, the head of the International Atomic Energy Agency, warned that any agreement which did not include provisions for IAEA inspections would be an “illusion of an agreement.” The IAEA has been unable to resume inspections in Iran since the June 2025 strikes and has not been able to verify the current status or extent of Tehran’s nuclear programme. The MOU as described does not appear to include immediate IAEA inspection provisions, with nuclear details deferred to the 60-day final negotiation period.
Israel, which is not a party to the MOU, has opposed the deal. Prime Minister Benjamin Netanyahu said on June 11 that Israel was not party to the emerging agreement and had not been consulted on its terms.
Background
The United States and Israel launched large-scale military strikes against Iran on February 28, 2026, aiming at Iran’s nuclear and ballistic missile infrastructure and resulting in the death of Supreme Leader Ali Khamenei. Iran appointed Khamenei’s son, Mojtaba Khamenei, as his successor. Tehran closed the Strait of Hormuz as part of its counter-strikes and Iran-backed forces launched attacks against Israeli, US, and Arab targets across the region. A temporary two-week ceasefire was announced on April 7, 2026, following negotiations brokered by Qatar and Pakistan. The MOU being discussed, described by sources as the “Islamabad agreement,” would extend that ceasefire by 60 days. Negotiations have been mediated through multiple channels, with Oman, Qatar, and Pakistan all playing facilitation roles.
What Happens Next
Both Trump and Iranian officials have said a signing ceremony could take place in the coming days, though final approval from Supreme Leader Mojtaba Khamenei had not been confirmed as of Sunday. If signed, the MOU would extend the current ceasefire by 60 days, during which both sides would negotiate a comprehensive final agreement covering Iran’s nuclear programme in detail. Iran’s Foreign Ministry confirmed that those 60-day negotiations would focus on “the continuation of Iran’s peaceful nuclear programme, the lifting of unilateral American sanctions and mechanisms for compensation and reparations.” The IAEA’s ability to resume inspections in Iran remains unresolved, with Grossi having said that inspections are a non-negotiable requirement for any credible final agreement.
