The U.S. Donald Trump administration on the 17th (local time) released the full text of a 14-clause memorandum of understanding (MOU) for ending the war signed with Iran.
According to the New York Times (NYT) and others, a senior Trump administration official, in a telephone briefing that day, disclosed the contents of the MOU that include ending military operations, opening negotiations to permanently end the war, resuming free navigation in the Strait of Hormuz, and banning Iran from possessing nuclear weapons. Some media outlets such as Bloomberg News had previously obtained and reported on a draft of the MOU, but this is the first time the Trump administration has released the agreed full text.
Clause 1 of the MOU states, "The United States and Iran declare the immediate and permanent end of military operations on all fronts, including Lebanon, and pledge to refrain from mutual threats or the use of force," adding, "The final agreement will confirm the permanent end of the war on all fronts, including Lebanon."
Clause 2 contains the statement, "The two countries respect each other's sovereignty and territorial integrity and do not interfere in each other's internal affairs."
Clause 3 provides that a final agreement will be negotiated and concluded within up to 60 days, extendable by mutual agreement. Clauses 4 and 5 then include measures related to the Strait of Hormuz.
The MOU stipulates, "Iran will do its utmost over the next 60 days to guarantee free two-way passage of merchant vessels through the Strait of Hormuz without fees, and the passage of civilian vessels will immediately return to normal." It also states, "Within 30 days Iran will complete mine clearance and other technical and military measures, and future strait management and maritime service issues will be consulted with Oman and Gulf countries."
Some interpret this to mean that because the guarantee of free passage is limited to 60 days, it could later be used as a basis for imposing tolls under the pretext of management and maritime services.
The NYT said, "The key is 'only free for 60 days,'" adding, "After that, it could mean the end of the era of free passage, which runs counter to the principle presented by Secretary of State Marco Rubio that 'trade must return to prewar levels.'"
The MOU also includes that the United States, together with regional partners, will prepare a definitive investment plan of at least $300 billion (about 450 trillion won) for Iran's reconstruction and economic development. Iran demanded about $400 billion (about 600 trillion won) in war damages, but the United States rejected this, and a plan is being discussed to create a reconstruction and development fund with participation by private corporations from Middle Eastern Gulf countries and Asian countries such as Korea and Japan.
On the core issue of Iran's denuclearization, it includes the statement, "Iran reaffirms that it will not acquire or develop nuclear weapons." It also proposes as a minimum standard that Iran's stockpile of highly enriched uranium be disposed of under a mechanism agreed by the two countries, with on-site dilution under the supervision of the International Atomic Energy Agency (IAEA).
A senior U.S. official said, "Iran has at minimum agreed to dilute and discard its stockpiled enriched uranium," adding, "We will adopt on-site dilution under IAEA supervision as the basic principle."
The United States decided to implement sanctions waivers that will allow Iran to fully use its frozen asset as soon as the MOU is implemented, and to permit exports of crude oil, petroleum products, and related derivatives. Iran's currently frozen assets, including proceeds from crude oil sales, are estimated at about $100 billion (about 150 trillion won).
Regarding the MOU signing ceremony to be held in Switzerland on the 19th, the senior U.S. official said, "It will be an important moment to gauge how negotiations with Iran will unfold." The official added, however, "Although electronic signatures have already been made, either side can withdraw until a legally binding final agreement is concluded."