US and Iran sign MOU to end war as Strait of Hormuz set toll-free for 60 days
The United States and Iran have signed a memorandum of understanding aimed at ending the war and reopening the Strait of Hormuz. The agreement was confirmed by the White House and by Iran's Foreign Ministry spokesman, Esmaeil Baghaei. US officials said the document was signed by President Donald Trump and Iranian President Masoud Pezeshkian.
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The MOU says the Strait of Hormuz will be toll-free for 60 days, although it leaves open the possibility that tolls could be imposed later. A senior US official said there was confidence that would not happen. The text also includes a $US300 billion reconstruction fund for Iran, while US officials said that did not mean Washington would be financially involved.
The document reiterates Iran's commitment not to procure or develop nuclear weapons, but leaves the main questions around the nuclear programme for final negotiations. That means the agreement appears to settle immediate military and maritime issues first, while postponing the most sensitive strategic questions. The White House released the official ceasefire text hours before the MOU was reported, adding further detail on the planned handling of Iran's enriched uranium stockpiles and the end to fighting in Lebanon.
The Strait of Hormuz is one of the world's most important shipping routes, so any change to access or tolls has direct implications for energy flows and commercial shipping. The inclusion of a reconstruction fund also suggests the talks are moving beyond a narrow ceasefire and into the question of post-war recovery. At the same time, the decision to leave nuclear issues for later talks shows that the broader dispute remains unresolved.
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The agreement follows a period in which the ceasefire text was already being examined for its wider implications, including provisions linked to Lebanon and to Iran's uranium stockpiles. The memorandum's language on toll-free passage for commercial shipping is a practical step, but it is not yet clear how it will be implemented or monitored. The fact that the deal is framed as an MOU rather than a final peace treaty also indicates that further negotiations are still required.
What remains unclear is whether the toll-free arrangement will hold for the full 60 days, whether the reconstruction fund will be activated in practice, and how quickly the final negotiations will address the nuclear file. It is also not yet clear how all parties to the wider conflict will respond to the terms. The next stage will be whether the ceasefire commitments are carried out on schedule and whether the talks produce a more durable settlement.
The United States and Iran have signed a memorandum of understanding that says military operations will stop immediately and permanently across all fronts, including Lebanon. The document was published on Wednesday and presents the move as an end to the war in the Middle East. It also says the two sides and their allies will not begin any further war or military operation against each other.
According to the text, the agreement commits both countries to respect each other's sovereignty and territorial integrity and to avoid interference in internal affairs. It says a final agreement is to be negotiated within 60 days, with the deadline extendable by mutual consent. The memorandum also says the final deal will confirm the permanent end of the war on all fronts, including Lebanon.
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The document sets out immediate practical steps as well. It says the United States will begin suspending its naval blockade and any disruption or obstacle imposed on Iran immediately after the memorandum is signed, and will end the blockade completely within 30 days. It also says US forces will withdraw from areas near Iran within 30 days after the final agreement is signed.
In return, Iran says it will take all possible efforts to ensure safe passage for commercial ships for 60 days in the Gulf region. If implemented, the agreement would mark a major shift in a conflict described in the document as involving multiple fronts and allied forces. The inclusion of Lebanon is significant because it suggests the deal is intended to cover a wider regional theatre rather than a bilateral pause in hostilities alone.
The reference to naval access also points to the economic importance of maritime routes in the Gulf, where shipping and energy flows are central to regional stability. The memorandum is framed as a formal political commitment rather than a final peace treaty. That means the next 60 days are likely to be crucial, because the sides are expected to negotiate a definitive settlement while the immediate military commitments take effect.
The text also leaves open the possibility of extending the talks if both sides agree, which suggests the process may remain fluid. The agreement's language places emphasis on sovereignty, non-interference and territorial integrity, which are recurring issues in disputes involving the United States and Iran. It also links the end of military operations to the security of Lebanon, indicating that the conflict has had consequences beyond the two main signatories.
The document does not explain how the commitments will be monitored or enforced, which is likely to be a central question for any follow-up deal. What remains unclear is whether all parties to the wider conflict will accept the terms and how quickly the military and naval measures will be carried out. The document also does not say when the final agreement will be signed, only that negotiations should conclude within 60 days unless extended.
The key developments to watch are whether the ceasefire language holds in practice, whether the blockade is lifted on schedule, and whether the talks produce a durable settlement.
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