The agreement, which was initially expected to be signed during a ceremony in Switzerland later this week, was finalised ahead of schedule after both sides agreed to accelerate implementation. According to U.S. media reports, the move was intended to allow commercial shipping to resume through the Strait of Hormuz as quickly as possible and to address growing political pressure on the White House to release the text of the agreement.
The White House on Wednesday published the full 14-point memorandum, describing it as a “performance-based” framework under which Iran will receive economic benefits only if it complies with its commitments.
Trump formally signed a hard copy of the document during a diplomatic dinner with French President Emmanuel Macron at the Palace of Versailles in Paris, France, while attending G7-related events. Iranian President Masoud Pezeshkian also signed the agreement from Tehran, finalising a dual digital and physical execution of the historic accord.
The MoU declares an immediate and permanent end to military operations between the two countries and extends the ceasefire to regional fronts, including Lebanon. It commits both Washington and Tehran to refrain from future military action against one another while respecting each other’s sovereignty and territorial integrity.
One of the agreement’s most significant provisions concerns the reopening of the Strait of Hormuz, one of the world’s most strategically important maritime corridors.
The narrow waterway between Iran and Oman carries approximately 20% of the world’s petroleum liquids and about one-fifth of global liquefied natural gas (LNG) supplies, making it a critical artery for international energy markets. Any disruption to shipping through the strait immediately constrains global energy supplies, triggering sharp increases in oil prices and broader economic instability.
The closure of the Strait of Hormuz during the conflict sent crude oil prices soaring and disrupted global shipping, with the impact quickly filtering through to fuel markets around the world.
In Rwanda, the effects were particularly visible as fuel prices climbed to record levels despite continued government subsidies. Diesel is currently retailing at Rwf 2,927 per litre, while petrol costs Rwf 2,938 per litre, reflecting the global supply shock caused by the conflict.
Under the memorandum, Iran has committed to making its best efforts to immediately restore safe passage for commercial vessels through the waterway without imposing transit charges. Shipping will resume alongside de-mining operations and the removal of military obstacles created during the conflict. The agreement also calls for Iran to work with Oman and other Gulf states on a broader framework for the long-term management and security of the strait.
The United States, in turn, will begin dismantling its naval blockade of Iranian ports, with the process expected to be completed within 30 days. Washington has also agreed to gradually reduce its military presence near Iran as negotiations progress toward a permanent settlement.
The memorandum establishes a 60-day negotiating period during which both sides will seek to conclude a comprehensive peace agreement. That deadline can be extended by mutual consent if additional time is required.
A central element of the accord is Iran’s commitment that it will never develop or acquire a nuclear weapon. The agreement provides that Tehran’s existing stockpile of highly enriched uranium will be addressed under the supervision of the International Atomic Energy Agency (IAEA), although the precise mechanism will be negotiated during the next phase of talks.
Economic measures also feature prominently in the memorandum.
The United States has agreed to begin discussions on lifting sanctions against Iran as part of a final agreement, while the two sides will work with regional partners to establish a reconstruction and economic development framework valued at at least $300 billion. U.S. officials stressed, however, that Washington is not obligated to finance the fund directly, saying investments are expected to come largely from regional partners and private investors.
The agreement also provides for the phased release of certain frozen Iranian assets and the creation of a joint mechanism to monitor compliance with the MoU until a final peace settlement is reached.
Once implementation begins, the United States and Iran will negotiate a permanent agreement, which the memorandum says will ultimately be endorsed through a binding United Nations Security Council resolution.
While the MoU marks the most significant diplomatic breakthrough since the conflict erupted earlier this year, many of its most contentious issues, including the timeline for sanctions relief, the future of Iran’s nuclear programme and long-term regional security arrangements, remain subject to negotiations over the coming weeks.
If successfully implemented, the agreement is expected to restore stability to one of the world’s most critical energy corridors, ease pressure on global oil markets and reduce the economic fallout that has been felt by countries far beyond the Middle East.



















