Trump’s Memorandum With Iran: A Leap Toward Middle‑East Stabilization

Thu Jun 18 2026 04:47:36 GMT+0000 (Coordinated Universal Time)

US‑Iran MoU signed by President Trump unlocks the Strait of Hormuz, lifts sanctions and proposes a $300bn reconstruction fund – but leaves key details open for future talks.

A ten‑point Memorandum of Understanding, signed by President Trump and Iranian President Masoud Pezeshkian during the G7 in Evian, formally ends hostilities, opens the Strait of Hormuz, and calls for the removal of sanctions. The deal also pledges a $300bn reconstruction fund, places sanctions relief on performance, and sets out a framework for nuclear compliance and frozen asset release. While many specifics will be refined in six months of negotiations, the agreement marks a historic step that could shift regional power balances and impact global fuel markets.

In a groundbreaking move, President Donald Trump signed a Memorandum of Understanding (MoU) with Iran during the G7 summit in Evian‑les‑Bains, France, putting into motion a ten‑point agreement aimed at ending the prolonged dispute and restoring stability to the Middle East.

Key elements of the deal include:

1. Immediate cessation of hostilities

The MoU obliges the US and Iran to halt all military operations against each other, including any actions in Lebanon, and to respect the territorial integrity of Lebanon.

2. Opening of the Strait of Hormuz

Iran will allow safe, charge‑free passage for commercial vessels through the Strait, with the US removing its naval blockade within 30 days.

3. Sanctions relief

The agreement calls for the immediate termination of all economic sanctions, subject to Iran’s compliance with the nuclear disarmament provisions.

4. Nuclear commitments

Iran agrees not to develop a nuclear weapon and to work with the IAEA to downblende its enriched uranium stockpile.

5. Reconstruction fund

Stakeholders will devise a renewable plan worth at least $300 bn to rebuild Iran’s infrastructure, though the US will not provide direct financial input.

6. Frozen assets

The US pledges to unlock frozen Iranian funds upon the MoU’s signature, subject to future negotiations.

7. Monitoring and final deal

A mechanism to oversee compliance will be set up, and a binding UN Security Council resolution will conclude the final agreement.

While the MoU sets the stage for future negotiations, many details remain to be ironed out. Analysts note that the agreement is “performance‑based,” meaning sanctions relief depends on Iran’s adherence to its commitments, and the final terms will be shaped through a six‑month negotiation period.

For the third time in history, the two nations have formally agreed to a framework aimed at de‑escalating the conflict that reignited in February 2026, a development that could reverberate through global markets and geopolitics.