Iran and US Finalize Key Agreement, Opening New Negotiation Phase

Iran has officially finalized a memorandum of understanding with the United States, marking a pivotal moment in their negotiations. This agreement initiates a 60-day period focused on Iran's nuclear program and the lifting of sanctions. Iranian officials emphasize the importance of unrestricted oil sales and assert that military capabilities will not be part of future discussions. The memorandum also addresses the operational status of the Strait of Hormuz, ensuring that it will not revert to pre-war conditions. As both nations prepare for further negotiations, the implications of this agreement could significantly impact regional stability.

By Narendra Chaudhary Jun 18, 2026, 05:23 IST

Iran and US Sign Memorandum of Understanding

On Thursday, Iran announced the completion of its memorandum of understanding (MoU) with the United States, marking a significant milestone in their negotiations. Esmail Baghaei, spokesperson for the Iranian Foreign Ministry, confirmed that both nations have digitally signed the agreement, as reported by state broadcaster IRIB. He stated, "The Iran–US memorandum is now officially finalized as both parties have signed it." Baghaei emphasized that the signing of this agreement heightens the implications of any potential violations, noting that breaching the memorandum would now entail greater consequences.

Baghaei explained that the contents of the agreement had been widely discussed prior to its signing, indicating that there were no unexpected elements within the text. He mentioned that the MoU initiates a 60-day negotiation period specifically aimed at addressing Iran's nuclear program and the lifting of sanctions. He remarked, "The wise decision of the Islamic Republic was to refrain from negotiating the nuclear issue at this time, focusing instead on ending the conflict, which we have achieved."

Furthermore, Baghaei reiterated Iran's stance on the necessity of unrestricted oil sales and access to the revenues generated from these sales. He indicated that the framework for unblocking Iranian assets had been established in collaboration with the central bank of Iran, asserting that Tehran must maintain the right to access and utilize its assets freely. He also noted that the United States had pledged to eliminate existing barriers.

Regarding the strategic Strait of Hormuz, Iranian officials clarified that its future operations would not revert to pre-war conditions. Baghaei stated that the responsibility for this vital waterway would lie with Iran and Oman. Chief negotiator Mohammad Bagher Ghalibaf emphasized that Iran would maintain sovereignty over the Strait and would charge fees for services rendered. The memorandum includes a 60-day period during which commercial shipping would be toll-free, after which transit fees may be implemented.

Despite US President Donald Trump's previous opposition to tolls on vessels using this crucial route, he has supported the agreement, arguing that it was essential for reopening the strait and preventing a potential global economic downturn. Iranian officials confirmed that negotiation teams are still expected to convene in Geneva, even though the digital signing has negated the need for an in-person ceremony. Baghaei highlighted that Iran prioritized achieving a ceasefire and resolving the conflict before tackling other matters, noting that the first clause of the memorandum emphasizes respect for Lebanese sovereignty and territorial integrity.

Iran has also made it clear that its military capabilities will not be part of future discussions. Baghaei stated that the country's missile program is off the negotiating table, asserting, "Iran's missiles are intended for use, not for negotiation," and reaffirming that Tehran will not engage in discussions regarding its defense assets with any party.