US and Iran Sign Memorandum of Understanding to End 110-Day War and Reopen Strait of Hormuz

The United States and Iran have officially signed a 14-point Memorandum of Understanding (MoU), marking an abrupt halt to a 110-day war that devastated global shipping and threatened a broader regional conflagration. The agreement, digitally executed by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf on Sunday, was formally signed by Presidents Donald Trump and Masoud Pezeshkian on Wednesday.[1][5]

The signing bypasses a previously planned formal ceremony in Switzerland, bringing the ceasefire into immediate effect. According to the text leaked by US officials and confirmed by Iranian state media, the Islamabad Memorandum of Understanding dictates the "immediate and permanent termination of military operations on all fronts."[1][8]

The most immediate global consequence of the MoU is the unblocking of the Strait of Hormuz. Prior to the conflict, the narrow waterway handled roughly 25 percent of the world's seaborne oil trade and 20 percent of its liquefied natural gas, making it one of the most critical energy chokepoints on the planet.[7]

The closure of the strait by Iranian forces in late February, followed by a retaliatory US naval blockade of Iranian ports in April, had effectively paralyzed regional maritime transit. Under the new framework, the United States has committed to removing its naval blockade within 30 days.[1][7]

In exchange, Iran is required to restore commercial traffic through the Strait of Hormuz to pre-war levels. Global markets reacted instantly to the news, with the Dow Jones Industrial Average hitting a record high and crude oil prices plunging nearly five percent as traders priced in the return of reliable Gulf energy supplies.[6]

However, the exact mechanism for managing the strait remains a point of friction. President Trump announced on social media that he had authorized the "toll-free opening" of the waterway. Conversely, Iranian Foreign Ministry spokesperson Esmaeil Baghaei asserted that Iran and Oman retain sovereign responsibility for the strait and will collect fees for "services given to ships."[3][6]

The MoU serves as a framework rather than a final treaty. It establishes a strict 60-day negotiating window—extendable by mutual consent—for Washington and Tehran to hammer out a comprehensive, permanent agreement.[1][4]

During this 60-day period, the US has agreed not to increase its military presence in the region or issue new sanctions. The framework also includes a US commitment to work with regional partners to develop a $300 billion reconstruction and economic development plan for Iran, a concession that has already drawn sharp criticism from US lawmakers.[1][5]

The hardest issues have been deliberately deferred to ensure an immediate cessation of hostilities. The MoU does not explicitly detail how Iran's nuclear program will be wound down, nor does it mandate the immediate removal of Iran's enriched uranium stockpile.[1][3]

Iranian officials have publicly stated that their defensive capabilities, including ballistic missiles, are non-negotiable. Baghaei emphasized that the 60-day window is a period of "commitment in exchange for commitment," demanding that Iran be allowed to sell its oil and access frozen funds immediately.[3]

A major geopolitical complication within the MoU is the explicit inclusion of Lebanon. The text states that the termination of military operations applies to all fronts, "including in Lebanon," effectively requiring Iran to rein in Hezbollah forces.[1]

Israel, however, is not a party to the US-Iran agreement. Israeli Prime Minister Benjamin Netanyahu's government has indicated that it does not feel bound by the MoU and reserves the right to continue military operations against Hezbollah in Lebanon.[1][3]

The exclusion of Israel from the core negotiations highlights the fragility of the broader regional peace. While French President Emmanuel Macron and other G7 leaders praised the deal as a vital step toward stabilization, the potential for a localized flare-up between Israel and Hezbollah to derail the US-Iran ceasefire remains high.[1][8]

Domestically, the agreement faces intense scrutiny in both nations. In Tehran, hardline factions protested outside the Foreign Ministry, accusing negotiators of surrendering control of the Strait of Hormuz and likening the US reconstruction fund to colonization.[1]

In Washington, several Democratic senators criticized the framework for offering premature sanctions relief without securing binding constraints on Iran's nuclear infrastructure. President Trump defended the MoU as a "wall to a nuclear weapon," warning that the US is prepared to resume military strikes if negotiations collapse.[1][5]

The coming weeks will test whether a 14-point framework can bridge decades of entrenched hostility. As one senior US official noted during the background briefing, the current peace is highly conditional, warning that either side can walk away at any time if the 60-day talks fail to yield a permanent treaty.[1]