US-Iran 14-point MOU explained: ceasefire, sanctions, oil and nuclear terms

The United States and Iran have signed a 14-point memorandum of understanding aimed at halting more than 100 days of war and reopening the Strait of Hormuz.

The agreement gives both sides 60 days to negotiate a final deal on the hardest issues, including sanctions, nuclear restrictions and frozen assets.

Israel is not a party to the MOU, and its refusal to be bound by the Lebanon provisions leaves a major enforcement gap before Friday’s planned ceremony in Bürgenstock, Switzerland.

A ceasefire that still leaves Israel outside the tent

The first clause of the MOU calls for the “immediate and permanent” termination of military operations on all fronts, including Lebanon.

It also commits Washington and Tehran to respect each other’s sovereignty and avoid the threat or use of force.

That sounds sweeping, but the wording is already being tested. Israel has made clear it is not a signatory to the US-Iran arrangement.

Prime Minister Benjamin Netanyahu has said Israel will keep its forces in southern Lebanon and preserve freedom of action against Hezbollah.

That caveat matters because Lebanon is one of the agreement’s most sensitive pressure points.

Reuters quoted Dan Shapiro, a former US ambassador to Israel and now an Atlantic Council fellow, as saying this was “a pretty stark moment of divergence of interests”.

He added that Netanyahu was likely to signal that Israel was not bound by the agreement and would reserve its rights.

The result is a ceasefire framework with immediate market significance, but not yet a regional settlement.

It can reduce direct US-Iran confrontation, but it cannot by itself stop every front linked to the war.

Sanctions, frozen assets and oil relief come with sequencing risk

The economic bargain is the core of the MOU. The US commits to work with regional partners on a reconstruction and development plan worth at least $300 billion.

It also pledges to terminate sanctions on an agreed schedule as part of the final deal.

The crucial point is timing. Broad sanctions termination is not immediate. It is tied to negotiations over the next 60 days.

However, the MOU says the US Treasury will issue waivers for Iranian crude oil, petroleum products and related banking, insurance and transport services once the agreement is implemented.

That is why oil traders reacted quickly as any return of Iranian barrels, combined with a reopening of Hormuz traffic, changes the supply outlook for crude markets.

Brent and WTI have already eased as investors price out some of the war premium.

Frozen assets remain more contested. Iran has pushed the argument that restricted funds should become available under the MOU.

Washington is trying to frame any release as conditional and sequenced.

US Vice President JD Vance told Reuters that no funds had been released for signing the deal, adding: “There’s been no money released, and that won’t change.”

The tension is central to the next phase. Tehran wants early economic benefits to prove the deal has value.

Washington wants verification first, especially on enriched uranium and nuclear monitoring.

Also read: Hormuz reopening lifts sentiment, but analysts see months before trade recovery

Hormuz reopens, but the nuclear question is unresolved

The Strait of Hormuz is the clearest near-term market channel. Iran has agreed to use its best efforts to ensure safe, toll-free passage for commercial vessels for 60 days.

It also commits to restoring traffic levels within 30 days, while later talks with Oman and Gulf states would address longer-term maritime administration.

That is a major relief signal for energy markets. The strait is one of the world’s most important oil chokepoints, and the war had turned shipping risk into an inflation risk.

Still, the reopening narrative is not risk-free as reports of drone activity near commercial vessels after the MOU undercut the idea that shipping conditions have already normalised.

The nuclear language is even more fragile. Iran reaffirms that it will not procure or develop nuclear weapons, but that is not a new concession in itself.

The MOU says the sides will resolve the stockpile of enriched material through a mutually agreed mechanism, with down-blending on site under IAEA supervision as the minimum method.

The harder question, whether Iran retains enrichment rights and under what limits, is left for the 60-day talks.

That makes the MOU a de-escalation document, not a nuclear settlement.

The immediate takeaway for markets is lower tail risk around Hormuz and Iranian oil exports.