Washington: The United States and Iran have signed a memorandum of understanding (MOU) aimed at concluding their prolonged conflict, with a formal signing ceremony planned for later this week. Senior U.S. administration officials announced that the MOU, signed by U.S. President Donald Trump, Vice President JD Vance, and Iran's parliamentary speaker Mohammad Bagher Ghalibaf, would extend the current ceasefire for 60 days while negotiations continue on nuclear and other issues.
According to Yonhap News Agency, the electronic signing precedes a formal ceremony scheduled in Switzerland on Friday. The MOU explicitly states that the Strait of Hormuz will be open toll-free for 60 days, and Washington anticipates this toll-free access to be included in the final peace agreement. The Strait of Hormuz is a critical shipping lane for oil, natural gas, and other commodities.
While further details of the MOU are pending, officials assured that they would be disclosed within the next couple of days. One official highlighted the U.S. commitment to "full transparency" in the negotiations with Tehran and indicated that Vice President Vance would continue to lead the discussions.
An official noted a "significant increase" in ship movements through the Strait of Hormuz, which had been nearly closed during the conflict initiated by a U.S.-Israeli attack on Iran in late February. While a return to pre-war traffic levels will take time due to the need for mine clearance and ensuring safe passage, the MOU guarantees toll-free transit for 60 days.
Discussions with French President Emmanuel Macron at the Group of 7 summit confirmed that the strait will remain toll-free under the MOU. Iranian state media reported the same, indicating that post the 60-day period, Iran and Oman will manage the waterway.
Restoring free passage through the strait was a critical aspect of the U.S.-Iran negotiations, as disruptions had led to increased energy prices and global economic concerns. Countries like South Korea have been particularly affected, with vessels stranded in the strait due to the conflict.
Regarding the absence of Iran's Supreme Leader Mojtaba Khamenei in the signing, officials stated that parliamentary speaker Ghalibaf holds significant influence and operates with the supreme leader's approval. President Trump personally signed the MOU to demonstrate his commitment to the peace process.
The officials emphasized that any U.S. benefits from the peace deal would depend on Iran's adherence to its commitments. Discussions included the potential release of frozen funds, sanctions relief, and a substantial fund for Iran's reconstruction, all contingent on verifiable progress by Iran.
Trump underlined that sanctions relief for Iran would be conditional on the regime's compliance with the peace agreement, emphasizing that actions, not just promises, would guide the process.