US and Iran Sign Ceasefire Extension Agreement with 14-Point Memorandum

The United States and Iran have formally signed a Memorandum of Understanding (MoU) to extend their ceasefire, marking a significant diplomatic breakthrough four months after military conflict erupted between the two nations and Israel. President Donald Trump signed the agreement on June 18, 2026, during the G7 summit in Evian-les-Bains, France, with Iranian President Masoud Pezeshkian also providing his signature. The 14-point agreement aims to restore stability to the region, including the reopening of the strategically vital Strait of Hormuz and comprehensive economic reconstruction.

The agreement stipulates that the US, Iran, and their respective allies will immediately and permanently cease military operations on all fronts, including Lebanon, with neither side permitted to initiate further military action or threats. A critical point of contention concerns Israel's continued military operations against Hezbollah in Lebanon, which Iran has warned would constitute a violation of the agreement. The two nations have committed to negotiating a final agreement within 60 days, extendable by mutual consent. Under the terms, both countries will respect each other's sovereignty and territorial integrity, with the US pledging to avoid interference in Iran's internal affairs—a provision that has drawn concern from Iranian opposition groups.

Economically, the agreement includes substantial provisions aimed at rebuilding Iran. The US will lift its maritime blockade within 30 days and withdraw military forces from areas surrounding Iran, reverting to deployments prior to February 28 when hostilities began. Iran has committed to ensuring safe, toll-free passage for commercial vessels through the Strait of Hormuz and will work with Oman and other Gulf states to establish broader agreements governing the waterway's management. Additionally, the US and regional partners will develop a reconstruction and economic development plan valued at least $300 billion, though the US has emphasized it will not directly fund this initiative.

The agreement addresses Iran's nuclear program with the commitment that Iran will never acquire nuclear weapons and will allow the International Atomic Energy Agency to supervise the downblending of its existing enriched uranium stockpiles. Both sides have agreed to maintain the status quo of Iran's nuclear program pending resolution of the enriched uranium issue. Trump's administration has framed the agreement as "performance-based," meaning Iran's benefits depend on strict compliance with its commitments, distinguishing this approach from the 2015 nuclear deal negotiated under the Obama administration.

On sanctions, the US has committed to ending all economic sanctions against Iran, including those mandated by UN Security Council resolutions and unilateral American measures, though specific timelines remain undefined. The agreement includes provisions for unfreezing Iranian assets, with the US promising to make available frozen or restricted funds. A final agreement, to be negotiated over the coming weeks, will establish monitoring mechanisms and is expected to receive confirmation through a binding UN Security Council resolution, ensuring international legal standing for the accord.