US and Iran Sign Memorandum of Understanding to End War, but Key Issues Remain for Negotiation
In a dramatic turn of events, the United States and Iran signed the so-called 'Islamabad Memorandum of Understanding' on Wednesday, bringing an end to a 15-week conflict and reopening the strategic Strait of Hormuz. The agreement, which extends a ceasefire and initiates a 60-day phase of technical talks, was signed by President Donald Trump at the Palace of Versailles in France, while Iranian President Masoud Pezeshkian signed digitally from Tehran.
President Trump hailed the deal as a "major win" for the United States, stating that it achieves "everything we set out to accomplish, everything and much more." He emphasized that the agreement reopens the Strait of Hormuz, which typically carries about a fifth of the world's oil and liquid gas supplies but was blocked by Iran early in the war. Trump also reiterated his goal of preventing Iran from "ever" obtaining a nuclear weapon, promising that if Iran does not adhere to the agreement, "they will be bombed."
However, the full text of the 14-point agreement, released by the White House, reveals that several key issues remain unresolved. The memorandum commits Iran to "downblending" its stockpile of highly enriched uranium, which is currently at 440kg and enriched up to 60% purity—near weapons-grade. This process would be supervised by the International Atomic Energy Agency (IAEA). Yet, the technical details of how and on what timeline this will occur are still to be negotiated.
The agreement also includes a 60-day cessation of hostilities, during which the two sides will address contentious issues such as Iran's nuclear program, sanctions, and the release of billions of dollars of frozen Iranian assets. However, the deal does not address Iran's ballistic missile program or its support for proxy groups in the region. Additionally, it does not specify the amount or timeline for unfreezing Iranian funds; Iranian state media have reported that Iran has demanded $24 billion be unfrozen, while Trump and Vice President J.D. Vance have said no American money will be paid to Iran, though the frozen assets are Iranian funds held in banks worldwide under US sanctions.
The agreement has sparked a geopolitical storm, particularly drawing firm opposition from Israel, which views it as a strategic setback. Israeli leaders and Republican hardliners have expressed anger over the concessions made by Washington, including the US lifting its naval blockade of Iranian ports and allowing Iran to continue some uranium enrichment for civilian use. Hezbollah's chief Naim Qassem, meanwhile, hailed the deal as a "great victory" for Iran.
In the Middle East, the news of the agreement was met with relief but also skepticism. Many analysts and experts expressed doubt that the interim deal would resolve the region's deep-rooted problems or prevent future conflict. Neil Quilliam, a Middle East expert at Chatham House, dismissed it as "just a big Band-Aid," noting that future conflict is likely.
"There appears to be political will on both sides to continue negotiations, which is encouraging," said Middle East analyst Fatemeh Aman, who has worked at think tanks like the Middle East Institute and the Atlantic Council. "At the same time, the most difficult questions have not yet been settled. For that reason, I would describe the prospects as cautiously positive, but far from certain."
The memorandum of understanding also calls for a ceasefire on all fronts, "including Lebanon," and requires both sides to respect each other's sovereignty and refrain from interfering in internal affairs. Iran has agreed to remove all impediments, including mines, from the Strait of Hormuz within 30 days of signing.
Despite the initial steps, many analysts doubt that a comprehensive final settlement can be reached within the 60-day timeframe. The 2015 Iran nuclear deal, which Trump tore up during his first term, took 18 to 20 months of negotiations. The interim deal, as noted by several experts, does little more than commit both sides to further talks while temporarily easing tensions in the volatile region.