US and Iran Sign Memorandum of Understanding to End Military Operations

Diplomacy

USA, Iran

The United States and Iran have electronically signed a memorandum of understanding to suspend military operations and initiate a 60-day negotiation period for a final peace deal.

Key points

  • The agreement, which has already taken effect, aims to prevent Iran from acquiring nuclear weapons and includes plans for a $300 billion reconstruction fund.
  • The US has committed to lifting sanctions and issuing fuel export waivers as part of the framework.
  • Iran's chief negotiator, Mohammad Bagher Ghalibaf, stated that the Strait of Hormuz will not return to pre-war conditions and will be subject to service fees.
  • The signing, which bypassed a planned ceremony in Geneva, follows a period of intense conflict that began in February 2026.

Why it matters

The memorandum marks a significant de-escalation in the US-Iran war, potentially stabilizing global trade routes and energy markets while setting the stage for a comprehensive long-term settlement.

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