US releases text of Islamabad MoU with Iran on Strait of Hormuz and sanctions

ISLAMABAD: The United States on Wednesday made public the official text of the memorandum of understanding agreed with Iran over the weekend, setting out provisions related to reopening the Strait of Hormuz, easing some financial restrictions on Tehran and laying down a framework for addressing Iran’s nuclear programme.

The document, titled the Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran, was released after criticism over the text not being made public earlier. The agreement followed months of diplomatic efforts by Pakistan. Prime Minister Shehbaz Sharif, while announcing the deal, had said the formal signing of the document would take place in Switzerland, although the US and Iran signed it electronically.

A senior US official described the understanding in these terms:

"This is fundamentally an agreement that allows us to open the Strait of Hormuz immediately, commit the Iranians to destroying the nuclear dust, and then gives us a dial where if the Iranians dial up their good behavior, we respond by dialing up the kind of economic and sanctions relief"

The 14-point memorandum signed on Friday starts a 60-day period for negotiating the final terms of a broader accord.

Ceasefire and security provisions

Both countries and their allies involved in the current conflict have agreed in principle to the immediate and permanent end of military operations on all fronts, including Lebanon. The document also says both sides would avoid any further use or threat of force against one another.

It underscores respect for sovereignty and territorial integrity, as well as a pledge not to interfere in each other’s internal affairs. The framework says negotiations would be held to secure a final agreement within 60 days, with the possibility of extension if both sides consent.

Under the security arrangements outlined in the memorandum, the United States would start removing its naval blockade immediately after signing, with all related restrictions to be fully withdrawn within 30 days. It also proposes that US forces be moved away from areas near Iran within 30 days after a final agreement is concluded.

At the same time, Iran would allow the safe movement of commercial shipping for a limited 60-day period across major maritime routes, including the passage between the Persian Gulf and the Sea of Oman. Tehran would also carry out technical and military clearance measures, including demining operations, within 30 days.

The text further provides for consultations with Oman and other Gulf states on the future administration and maritime services of the Strait of Hormuz in line with international law.

Sanctions relief, reconstruction and nuclear framework

The memorandum outlines a proposed reconstruction and development package valued at at least $300 billion, to be worked out with regional partners. It says the United States would issue the financial licences and permissions required for implementation.

A key part of the framework is sanctions relief. Under the text, Washington would commit to ending all forms of sanctions on Iran, including unilateral restrictions and relevant international resolutions, in phases linked to a final agreement.

On the nuclear issue, Iran reiterates that it will not pursue the development of nuclear weapons. The two sides also agree on a mechanism to deal with stockpiles of enriched material under the supervision of the International Atomic Energy Agency, alongside wider talks on enrichment and nuclear requirements within a mutually agreed framework.

Until a final agreement is reached, Iran would keep its nuclear programme at the current status, while the United States would avoid imposing new sanctions or sending additional forces to the region.

The document also says the US Treasury would grant waivers to allow exports of Iranian crude oil, petroleum products and related financial and logistical services. It also includes provisions to unfreeze or release Iranian assets and funds under agreed procedures.

An implementation and monitoring mechanism would be set up to supervise compliance with the memorandum and any later final agreement. The text adds that negotiations on the remaining provisions would begin once key parts of the framework are activated. Any eventual final agreement, according to the document, would be endorsed through a binding United Nations Security Council resolution.