Ceasefire, Oil Exports, $300 Billion Fund: Inside The Draft US-Iran Memorandum

A 14-point memorandum of understanding (MoU) between the United States and Iran has outlined a roadmap for ending hostilities, reopening vital shipping routes and negotiating a broader agreement on sanctions relief and Tehran’s nuclear programme, according to a draft obtained by CNN.

The document, which has not been officially released, was obtained by CNN from a US official and its contents were corroborated by a diplomat who reviewed it at the G7 summit in France, as well as two other diplomatic sources familiar with the negotiations. According to CNN, the MoU is expected to be formally signed in Switzerland on Friday, after which both sides would have 60 days to negotiate a final agreement.

Roadmap to de-escalation

The draft begins with a declaration of an immediate and permanent end to the conflict between the two countries and their allies, including in Lebanon, with both sides pledging to refrain from hostile actions and respect each other’s sovereignty and territorial integrity.

Among its key provisions, the United States would lift naval restrictions affecting Iran and facilitate the restoration of shipping traffic, while Iran would ensure the resumption of merchant vessel movement through the Persian Gulf and the Sea of Oman. The agreement also envisages reopening maritime routes linked to the Strait of Hormuz.

The MoU further proposes that Washington allow Iranian crude oil and petrochemical exports through Treasury waivers while negotiations continue. It also outlines plans for a comprehensive economic rehabilitation package worth at least $300 billion, contingent on future agreements, and commits to releasing frozen Iranian funds as negotiations progress.

Nuclear and sanctions framework

On the nuclear front, Iran reiterates that it “will never produce nuclear weapons,” although the draft leaves unresolved the future of its highly enriched uranium, stating that such issues would be addressed in the final agreement. Pending those talks, Iran would maintain the status quo on its nuclear programme while the US would refrain from imposing new sanctions or expanding its regional military presence.

The document also calls for the establishment of an implementation mechanism to oversee compliance and proposes that the eventual final agreement be endorsed through a binding United Nations Security Council resolution.

Questions over implementation

However, uncertainty remains over the final language and legal status of the memorandum. CNN reported that US officials have described it as a “political document” that does not reflect all confidential understandings reached through back-channel diplomacy, while Iran’s semi-official Tasnim news agency has characterised leaked versions of the draft as inaccurate.

Adding to doubts over the durability of the arrangement, US President Donald Trump stressed that the memorandum was not a final deal and warned that military action could resume if Iran failed to meet expectations.

“It’s not final. It’s a memorandum of understanding, and if I don’t like it, if they don’t behave, we’ll go right back to dropping bombs,” Trump said at the G7 summit, underscoring the fragile nature of the proposed accord even as both sides prepare for formal signing.