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June 18, 2026

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What’s in the US-Iran deal? Key details from the 14-point agreement

The 60-day countdown starts on a fragile truce as the US and Iran work towards a tough final deal to end their war.

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The US and Iran signed to end their war on Wednesday (Jun 17), paving the way for a broader 60-day negotiation period due to begin in Switzerland on Friday.

Titled the Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran, the agreement defers many of the most difficult issues, including how to wind down Iran’s nuclear programme, until a final deal is reached.

Iran insisted the deal represented a US “failure” while US President Donald Trump said he was prepared to “bomb the hell” out of Iran if Tehran violated its terms.

CNA takes a closer look at the 14-point agreement:

Ending the war “on all fronts”

The first point of the agreement states that the US, Iran and allies declare an “immediate and permanent” termination of military operations on “all fronts”, including in Lebanon.

It continues that “from now on”, the parties will not initiate any military operation against each other, and they must “refrain from the threat or use of force against each other”.

The agreement also made mention that both sides would ensure the “territorial integrity and sovereignty of Lebanon”.

“The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph,” it stated.

Israeli Prime Minister Benjamin Netanyahu, who helped convince Trump to launch the war, has insisted Israel is not bound by any agreement in its fight against Iran-aligned Hezbollah in Lebanon.

Though hostilities there have abated since Trump rebuked Netanyahu this week, further escalation could threaten the talks. Iran says the deal also requires a ceasefire in Lebanon.

Respecting sovereignty

The second point of the agreement states that both nations are to “undertake to respect each other’s sovereignty and territorial integrity, and to refrain from interfering in each other’s internal affairs”.

Iran is deeply suspicious of Trump, who twice in the past year attacked in the middle of negotiations.

Whether or not the Iranians are willing to compromise could also hinge on their supreme leader, Ayatollah Mojtaba Khamenei, considered more hardline than his father, who was killed along with the new leader’s mother, wife and son in a US-Israeli strike.

The US will also be distrustful, watching to see if Iran is stringing them along, as Trump aides say they have experienced before.

The 60-day timeline

The clock started ticking as soon as the ink dried.

According to the third point in the document, both sides must commit to negotiating and achieving the final deal within a maximum of 60 days. This deadline is only extendable with mutual consent.

The US-Iran deal is unlikely to produce a comprehensive agreement within its proposed 60-day timeframe, according to Johns Hopkins University professor Steven David.

“The notion that somehow they’re all going to be concluded in 60 days, I think, is ludicrous,” the professor told CNA.

He suggested that Trump was under pressure to end a conflict that had fuelled economic pressures in the US ahead of November’s midterm elections.

“Clearly, President Trump was concerned that this war with Iran was very unpopular with the American public,” he added.

“He was under a lot of pressure … to get a deal with Iran that would enable the United States to claim victory and stop the conflict.”

Strait of Hormuz

Points 4 and 5 are maritime-related and cover the US’ naval blockade, as well as the use of the waterways in and around the Strait of Hormuz.

The fourth point of the agreement states that the US will fully end the naval blockade against Iran within 30 days.

During this period, the traffic of vessels will be “in proportion to the numbers of pre-war traffic” being restored by Iran and that the US “further undertakes to remove its forces” near within 30 days after the final deal.

Meanwhile, point 5 states that Iran will make arrangements “using its best efforts” for the safe passage of commercial vessels with no charge for 60 days from the Persian Gulf to the Sea of Oman and vice versa.

The agreement specifies that the traffic of commercial vessels will “immediately start” be instated within 30 days.

It furthers that Iran will conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states “in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz”.

Questions remain about the strait, which Iran effectively blocked, triggering a global energy supply shock, after the US and Israel attacked on Feb 28. Under the MOU, the waterway, which normally carries one-fifth of the world’s oil, will be reopened on Friday, but shippers remain cautious.

The US says it will be toll-free. Iran, which gained leverage with control of the channel that it lacked pre-war, insists it will retain a management role.

Reconstruction of Iran

Under point 6, the US, together with regional partners, will develop a definitive, mutually agreed plan with at least US$300 billion for the “reconstruction and economic development” of Iran.

“The mechanism for the implementation of this plan will be finalised as part of the final deal within 60 days,” read the agreement.

“All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America.”

More than half that sum has already been committed and it will be comprised entirely of private-sector funds, a source with direct knowledge of the deal told Reuters.

The new fund is a private investment vehicle, not a reconstruction or reparations programme and will not include any government money or grants, the source said, adding that companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to commit financing.

US President Donald Trump on Wednesday pushed back against any characterisation of the fund as a US investment.

“We’re not investing, we’re not putting up 10 cents,” he said, adding that he was not asking Gulf countries to invest either.

“I would say they won’t be doing it for a while until they find out the behaviour. It’s a behaviour thing, but we are not investing,” he said on the sidelines of the G7 Summit in France.

People drive past an anti-US billboard depicting US President Donald Trump and the Strait of Hormuz, in Tehran, Iran, May 17, 2026. (Photo: Reuters/West Asia News Agency/Majid Asgaripour)

Sanctions and frozen funds

Point 7 details that the US will “terminate all types of sanctions” against Iran. This would include United Nations Security Council resolutions such as the IAEA Board of Governors resolutions, as well as all unilateral US sanctions, primary and secondary, in an agreed-upon schedule as part of the final deal.

“The Islamic Republic of Iran and the United States of America acknowledge the critical importance of the sanctions termination issue above mentioned and express their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them,” the MOU stated.

Additionally, point 10 specified that upon the signing of the memorandum and until the termination of sanctions, the US Treasury Department will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances, transportation.

Point 11 then furthers that the US shall “make fully available for use the frozen or restricted funds and assets” of Iran.

It added that both sides will mutually agree on the procedures related to the release of these funds during the negotiation: “Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States of America undertakes to issue all necessary licenses and authorisations accordingly.”

An attendee holds an Iranian flag with an “X” on it before the World Cup Group G match between Iran and New Zealand in Inglewood near Los Angeles on Jun 15, 2026. (Photo: AP/Mark J Terrill)

While Iran wanted Trump to quickly lift sanctions and unlock billions in frozen funds, the US said easing will be gradual and tied to Iranian compliance.

Still, the document lays out that Iran will immediately receive waivers to sell oil again, a conciliatory gesture that has added to criticism from Iran hawks that Trump is giving up too much.

Trump may be reluctant, however, to be seen handing over money to Iran anytime soon. The MOU is already being compared to the deal under former US President Barack Obama, whom he has long berated for returning some Iranian funds.

The newly signed US-Iran agreement could pave the way for hundreds of billions of dollars to flow into Iran’s economy, but there is uncertainty over how the money will be used and whether Tehran can be trusted to comply with its commitments, according to Indiana University Bloomington professor Jamsheed Choksy.

“The question that remains is whether Iran will use the funds that are becoming available for good or for bad. That is a very big question,” Choksy told CNA.

While such resources could help revive Iran’s economy and address pressing issues such as water shortages, Choksy said it is unclear whether the funds would benefit ordinary citizens.

“Will it flow into the pockets of the average Iranian citizen … or will most of it go to the IRGC, the Islamic Revolutionary Guard? Will it go to Iran’s regional proxies, and will it be used for trouble?”

Iran’s nuclear programme

Points 8 and 9 touch on Iran’s nuclear programme.

The former states that Iran “reaffirms that it shall not procure or develop nuclear weapons”, while the latter states that both sides agree to “maintain the current status quo” of Iran’s nuclear programme pending the final deal.

Point 9 adds that the US “will not impose any new sanctions and will not deploy additional forces in the region”.

However, it is not immediately clear how this will be enforced.

A satellite image taken on Jan 30, 2026 shows a new roof over a previously destroyed building at the Natanz nuclear site in Iran. (Image: Reuters/2026 Planet Labs PBC)

The document reads: “The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon, in accordance with the schedule mentioned in paragraph seven with the minimum methodology to be down blending on site under the supervision of the IAEA.”

The fate of Iran’s nuclear programme may carry the greatest potential to unravel the talks.

Where the negotiations could falter is over what to do with Iran’s stockpile of near-bomb-grade uranium.

Trump has said he wants it shipped out or destroyed. Iran wants neither, though it has indicated a possible willingness to dilute the material.

Another sticking point is Iran’s future uranium enrichment.

The US has at times demanded zero enrichment in Iran. Iran says it will not give up its right to enrich. Sources have said the two sides have previously discussed a potential moratorium of anywhere from five to 20 years, but compromise remains elusive.

Also in question is whether Iran will accept the level of international inspection conducted under the nuclear deal that former President Barack Obama reached in 2015 and which Trump ditched in 2018.

A binding UNSC resolution

Wrapping up the document are points 13 and 14.

Point 13 states that points 1, 3, 4, 10 and 11 will be implemented following the signing of the MOU while both sides will “start negotiations regarding the final deal exclusively on the other paragraphs”.

“The final deal will be endorsed by a binding UNSC resolution,” reads the final point.