What does the U.S.-Iran agreement say? | Explained

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After 40 days of warfare and much than 60 days of aggravated negotiations, the U.S. and Iran, connected June 15, agreed to a memorandum of knowing (MoU) to extremity the warfare and commencement much substantive negotiations connected contentious issues. The woody has kicked disconnected a geopolitical storm, with Israel opposing it firmly, causing an improbable rift betwixt Washington and Tel Aviv. U.S. President Donald Trump, who ripped up the 2015 Iran deal, which was signed by the Obama administration, calling it the “worst deal” successful America’s history, is facing backlash astatine location for the concessions Washington has made to Tehran. Iran’s enactment claims that they defeated the U.S. and Israel successful the warfare and that the presumption of the MoU underscored their victory. While the statement has brought lingering post-ceasefire skirmishes betwixt the U.S. and Iran to an end, this is not a last settlement.

What does the woody say?

The opening nonfiction of the MoU calls for a ceasefire connected each fronts, “including Lebanon”. It calls connected some sides to respect each other’s sovereignty and to refrain from interfering successful each other’s interior affairs. The U.S. has lifted its naval blockade of Iranian ports, portion Iran has taken steps to region its restrictions connected the Strait of Hormuz. The substance calls connected Iran to region each impediments, including mines, wrong 30 days of the signing of the deal.

One of the contentious issues during the talks was Iran’s request for entree to its frozen funds and for warfare reparations. The substance says Iran volition person its funds unfrozen contingent connected advancement successful the 2nd signifier of the talks, without specifying the magnitude oregon timeline. Iranian authorities media person reported that Iran has demanded that $24 cardinal beryllium unfrozen. Mr. Trump and Vice President J.D. Vance person said that nary American wealth volition beryllium paid to Iran. That could beryllium technically close arsenic the frozen funds are Iranian assets held successful antithetic banks crossed the satellite nether U.S. sanctions. If the U.S. lifts the sanctions, countries and banks could marque the transfer.

The U.S. would besides enactment with different determination countries to gully up a program for Iran’s reconstruction and redevelopment, which would impact $300 cardinal successful financing. Iran volition person entree to these funds if a last colony is reached.

What commitments has Iran made?

Iran, connected its part, has pledged ne'er to marque a atomic weapon. This has been the authoritative Iranian presumption for years. The Iranians had made the aforesaid pledge successful the 2015 Obama-Iran woody arsenic well. While much contentious issues specified arsenic Iran’s possession of 60% enriched uranium (which is simply a measurement distant from weapons-grade purity) and Iran’s enrichment capabilities are to beryllium discussed successful the 2nd phase, according to the substance released by the White House, some sides person mutually agreed to “downblend” (dilute) Iran’s enriched worldly nether the supervision of the International Atomic Energy Agency (IAEA). Other issues specified arsenic enrichment successful Iran and the country’s atomic needs volition beryllium discussed arsenic portion of the last deal.

Both sides besides agreed to support the presumption quo until they scope the last woody — Iran volition not grow its atomic programme and the U.S. volition not enforce further sanctions and deploy much troops to the region. Upon signing the MoU, the U.S. volition contented waivers for the export of Iran’s crude oil, petroleum products, and different derivatives, and each associated services, including banking, transactions, insurances, and transportation.

Where does Israel stand?

For Israel, the U.S.-Iran woody appears to beryllium a large strategical setback. Israel launched this warfare with the U.S. connected February 28 to bring astir authorities alteration successful Iran, destruct its atomic and rocket capabilities, and halt the state from supporting its non-state allies specified arsenic Hamas, Hezbollah, and Houthis. Israel had been a large proponent of a warfare connected Iran — officials of erstwhile U.S. administrations had said Israel had pushed erstwhile Presidents to motorboat strikes connected Iran. After the attacks by Hamas successful Israel connected October 7, 2023, the Zionist authorities fought a multi-front warfare against Hamas, Hezbollah, and the past Syrian authorities of President Bashar al-Assad — each Iranian allies. The autumn of the Assad authorities successful December 2024 weakened Iran’s determination lasting further, arsenic Syria was a cardinal nexus betwixt Hezbollah and Tehran. In June 2025, Israel bombed Iran aimed astatine destroying its atomic facilities. The U.S. joined in, but aft a azygous strike, Mr. Trump enforced a ceasefire betwixt Israel and Iran. But the 12-day war, arsenic it is called, was lone a proceedings run.

What Tel Aviv wanted was authorities alteration successful Tehran, which it thought would reshape West Asia with Israel being astatine the centre of a caller unipolar determination order. But this task collapsed arsenic Iran survived the 40 days of bombing. Iran’s stranglehold of the Strait of Hormuz and its refusal to marque concessions connected the atomic contented forced the U.S. to diverge from Israel’s maximalist demands and instrumentality a much narrowed-down attack to extremity the warfare and code the atomic question diplomatically. But to code these issues diplomatically aft the war’s failure, the U.S. would person to springiness important economical concessions to Tehran. As the U.S. is doing conscionable that, Israel, progressively isolated and frustrated, fears that the woody would render Iran conventionally stronger, altering the determination equilibrium of power.

Why does Lebanon matter?

Despite being chopped disconnected from the Iran-U.S. diplomatic process, Israel inactive possesses a cardinal paper — Lebanon. Israeli troops person occupied parts of Southern Lebanon, a Hezbollah stronghold. Hezbollah, a Lebanese Shia militia-cum-political party, is simply a adjacent state of Iran. To person a ceasefire successful Lebanon, which has been mentioned successful the MoU, Mr. Trump should get Israeli Prime Minister Benjamin Netanyahu connected board. Since Israeli troops are contiguous successful South Lebanon, Hezbollah, which is acold from defeated, is targeting the occupying force. And successful the sanction of striking Hezbollah, Israel is bombing Lebanon.

Both Prime Minister Netanyahu and Defence Minister Israel Katz person said that the Israeli troops volition not propulsion backmost from Southern Lebanon. This keeps Lebanon arsenic a flashpoint with a imaginable for escalation. An Iranian delegation was expected to question to Geneva to commencement nonstop negotiations for the 2nd signifier connected June 19, but Iran called disconnected talks, citing Israel’s attacks connected Lebanon. Mr. Netanyahu seems determined to usage the Lebanon card, making the U.S.-Iran bid process complicated. Israel’s continued attacks successful Lebanon and its nationalist disapproval of the Iran MoU person triggered uncommon nationalist disapproval of Israel from apical American officials, including Mr. Trump and Mr. Vance.

Will the statement hold?

Both Mr. Trump and the Iranians look determined to instrumentality the bid process to the adjacent step. Mr. Trump, who bombed Iran for 40 days, and kept a blockade connected Iran for astir 60 days, realises the monolithic economical costs of the war. The warfare was besides unpopular astatine location and outgo the U.S. billions of dollars, depleting its stockpile of weapons.

Iran, connected the different hand, has emerged regionally stronger. It volition restart negotiations with the U.S. without the fearfulness of a U.S. strike. But astatine the aforesaid time, Iran wants semipermanent economical alleviation and information guarantees to rebuild the state and code interior resentment. While determination are incentives for some sides to scope a last settlement, determination are 3 cardinal sticking points. The archetypal is Lebanon. As agelong arsenic Israeli troops proceed concern of Southern Lebanon, the state volition stay a tinderbox. And fixed that Israel is captious of the U.S.-Iran deal, Mr. Netanyahu could escalate the warfare aimed astatine torpedoing the detente. The warfare successful Lebanon posed the archetypal trial to the woody connected Saturday erstwhile Iran announced that it had closed the Strait of Hormuz, citing Israeli attacks connected Lebanon.

The 2nd is Iran’s highly enriched uranium (HEU). The U.S., until recently, argued that Iran’s HEU should beryllium taken retired of the state and destroyed, whereas Iran has ever opposed specified a move. Mr. Trump said past week that the HEU would beryllium diluted “either successful America oregon successful Iran”, which was a concession. A last statement should gully up the modalities for downblending nether the IAEA’s supervision, which besides means that Iran should reconstruct IAEA entree to its atomic sites.

The 3rd contented is Iran’s ‘enrichment right’. The U.S., until the warfare began, opposed immoderate enrichment connected Iranian soil, which had been the Israeli presumption arsenic well. Iran says it volition proceed to enrich uranium for civilian purposes. The last statement should constrictive the spread betwixt these 2 positions arsenic well.

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