US-Iran Ceasefire Deal Explained: What is in the 14-Point Agreement

The United States and Iran have signed a 14-point Memorandum of Understanding (MoU) to extend the ceasefire that ended months of hostilities involving Iran, the US and Israel. The agreement, signed by US President Donald Trump at the G7 summit in France and by Iranian President Masoud Pezeshkian, is now reportedly in effect and lays out a roadmap for a permanent peace deal.

The pact seeks to reopen the Strait of Hormuz, roll back US sanctions in phases, prevent Iran from acquiring nuclear weapons and establish a $300 billion reconstruction framework for Iran. While the agreement leaves several critical issues to be negotiated, it sets an extendable 60-day timeline for both sides to work toward a final, binding settlement.

Outlook looks at what is inside the 14 point agreement between the two countries.

Point 1: End to the conflict

The agreement calls for an immediate and permanent halt to military operations between the US, Iran and their allies, including in Lebanon. Both sides pledge not to initiate attacks or threaten one another and commit to respecting Lebanon's sovereignty and territorial integrity.

The provision reflects US concerns that Israeli military action against Hezbollah could undermine the ceasefire. Iran has also warned that continued Israeli operations in Lebanon would violate the agreement. However, Israel's response to this provision remains unclear.

Point 2: Respecting Sovreignty

Washington and Tehran have agreed to respect each other's sovereignty and avoid interference in domestic affairs.

The commitment marks a notable shift from previous US rhetoric supporting anti-government protests in Iran and is expected to draw criticism from Iranian opposition groups.

Point 3: Extendable 60-day Negotiations

The MoU gives both countries up to 60 days to negotiate a comprehensive final agreement, with the option of extending the deadline by mutual consent.

The countdown officially began after the agreement was signed by President Trump and Iranian President Masoud Pezeshkian.

Point 4: End to US Blockade

The US has agreed to begin lifting its naval blockade and remove restrictions affecting Iranian ports. The process is expected to be completed within 30 days.

Washington has also committed to withdrawing military assets deployed near Iran, restoring its force posture to pre-conflict levels once a final agreement is reached.

Point 5: Strait of Hormuz to Reopen

Iran has agreed to facilitate the safe and free passage of commercial ships through the Strait of Hormuz immediately after the agreement's implementation.

Shipping will resume gradually as mines and other military obstacles are cleared. Iran will also work with Oman and other Gulf states on a long-term framework for managing the strategic waterway without imposing transit fees.

Point 6: $300 billion Reconstruction Fund

The agreement proposes a reconstruction and economic development framework worth at least $300 billion for Iran.

The US will help facilitate licences and approvals but will not be required to contribute financially. Instead, regional partners and private investments are expected to fund future projects if Iran complies with the agreement.

Thought the US officials have repeatedly reiterated that they are under no obligation to pay a single penny to Iran, unlike the 2015 Nuclear deal signed under the Obama administration.

Point 7: Removal of Economic Sanctions

The US has agreed in principle to remove economic sanctions imposed on Iran, including unilateral American sanctions and those linked to UN Security Council resolutions.

The US runs an extensive sanctions regime against Iran which has cut off the gulf nation from the global financial system as well as depriving them of key funds necessary to run the country effectively.

The exact timeline will be determined during negotiations on the final agreement, with sanctions relief tied to Iran's compliance.

 Point 8: No Nuclear Weapons

Iran has pledged not to develop or acquire nuclear weapons.

The two sides will negotiate how to deal with Iran's existing stockpile of enriched uranium, with the minimum requirement being that the material is downblended under the supervision of the International Atomic Energy Agency (IAEA). Progress on this issue will determine the pace of sanctions relief.

Points 9 and 10: Nuclear Programme in Status Quo

Until a final agreement is reached, both countries will maintain the current status of Iran's nuclear programme at least until their current stockpile of enriched uranium is dealt with.

The US has also agreed not to introduce new sanctions and will continue issuing waivers for Iranian oil exports, banking transactions and related services.

Point 11: Frozen Assets to be Released

The agreement provides for the phased release of Iran's frozen overseas assets. This has been a key demand of the Iranian side as it could help them counter the country's economic decline.

Some funds may be unlocked during negotiations as Iran fulfils key commitments, including cooperation on reducing its enriched uranium stockpile.

 Points 12 to 14: Compliance Monitoring and Final Deal

The final sections establish a mechanism to monitor compliance with the agreement and oversee its implementation. This will likely be done jointly by both the sides party to the agreement though it is subject to negotiaions.

Negotiations on a permanent deal will begin immediately, with both countries aiming to secure a binding agreement that will eventually be endorsed through a United Nations Security Council resolution.