The 14-point memorandum of understanding between the US and Iran outlines several provisions, though uncertainty remains about whether a comprehensive agreement will be finalised. On Wednesday, officials provided detailed information about the memorandum of understanding with Iran, several days after the president announced the agreement.

The arrangement provides for resuming commercial shipping through the Strait of Hormuz, ending the naval blockade of Iranian ports by the United States, and pausing hostilities for 60 days to allow negotiations on a permanent nuclear agreement. During a conference call with reporters, officials outlined the provisions of the Memorandum of Understanding while Trump participated in the G-7 summit in France.

The text of the memorandum of understanding has not been made public, although officials confirmed the wording is finalised and signatures have been obtained. The documents are anticipated to be signed officially in the coming days.

Uncertainty remained regarding the durability of any arrangement, with Trump stating during his visit to France that bombardment could resume if terms were not upheld, noting the effectiveness of such measures, while one official characterized the understanding as informal and expressed skepticism about its reliability with Iranian counterparts, and the memorandum outlined that the U.S. would begin lifting its maritime blockade of Iranian ports while Iran would permit the restoration of commercial shipping through the Strait of Hormuz to levels seen before hostilities, though Iran may retain some influence over the waterway.

Approximately one-fifth of global petroleum flows through the strait, which Iran closed when hostilities began, leading to increased fuel costs. The memorandum of understanding specifies that commercial vessels may transit the strait without fees for a 60-day period, after which Iran, Oman and other Gulf states will determine the waterway's management arrangements, though whether charges will be imposed remains undecided.

The memorandum of understanding indicates that Tehran has pledged not to develop nuclear arms, though specific implementation details remain under discussion. They have been pledging this for five decades. The document essentially commits to continuing conversations about reducing concentrations of weapons-grade uranium in subsequent meetings.

Officials stated that this represents a baseline rather than an upper limit for discussions, noting that while they intend to pursue additional measures, the acknowledgment itself constitutes a notable achievement given that Iran possesses substantial quantities of uranium enriched to 60 percent. According to one source, the plan involves dismantling the enriched material stockpile through a specified minimum process.

The memorandum of understanding indicates that upon execution, the Treasury Department will authorise Iranian crude exports through waivers, potentially generating substantial revenue for a nation subject to prolonged economic restrictions, with provisions for a $300 billion reconstruction fund. The document further specifies that Washington commits to releasing Iran's frozen or restricted financial holdings, a sum potentially reaching around $100 billion. The agreement stipulates that sanctions will be eased only after Iran demonstrates adherence to its terms.

The memorandum of understanding indicates that upon finalisation of an agreement, sanctions imposed on Iran would be lifted, and Washington would collaborate with allied nations to establish a reconstruction fund valued at $300 billion for Iran. The account details will be resolved within a 60-day timeframe.

Officials from the administration contended that the memorandum of understanding does not obligate the United States to provide any financial payment to Iran, but instead would enable sanctions relief permitting nations such as the United Arab Emirates to construct infrastructure projects like power plants in Iran contingent upon reaching an agreement and Iranian adherence to its terms.

The agreement calls for an immediate halt to armed conflict across all operational theaters, with Lebanon referenced three times in the memorandum's initial provisions. The accord explicitly stipulates that Israel will end its military operations in Lebanon within the framework of the wider ceasefire involving Iran. The memorandum of understanding specifies that within 30 days following a comprehensive agreement, military deployments in the area are to return to levels that existed before hostilities began.