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Iran and U.S. Sign Memorandum to End War, Lift Blockade, and Begin Reconstruction
Iran and the United States have finalized a memorandum of understanding to immediately end the war and military operations on all fronts, including Lebanon. The agreement includes lifting the U.S. naval blockade within 30 days, providing at least $300 billion for Iran's reconstruction, and resolving sanctions and nuclear-related issues through a final comprehensive agreement within 60 days.
Quick Facts
Who
Iran
What
Memorandum of understanding signed between Iran and U.S.
When
June 18, 2026
Where
Tehran
- Memorandum of understanding signed between Iran and U.S.
- Commitment to permanently end war and military operations on all fronts
- U.S. naval blockade to be lifted
- Commercial maritime traffic to return to pre-war levels
- Sanctions to be lifted on agreed timetable
Iran's official news agency IRNA published the full text of a memorandum of understanding (MoU) between Tehran and Washington on June 18, 2026, marking a significant diplomatic breakthrough. The agreement commits both nations to immediately and permanently end military operations on all fronts, including Lebanon, and pledges mutual non-interference in each other's internal affairs and respect for sovereignty and territorial integrity.
Under the MoU's immediate provisions, the United States will begin lifting its naval blockade of Iran without delay, with complete removal expected within 30 days. Commercial maritime traffic will return to pre-war levels within the same timeframe, with Iran providing safe passage for commercial ships free of charge for 60 days. The two countries have committed to reaching a final comprehensive agreement within 60 days, extendable by mutual consent. Additionally, the U.S. pledges to withdraw its military forces from areas around Iran within 30 days of the final agreement's signing.
The agreement addresses Iran's nuclear program and sanctions relief. Iran reaffirms its commitment not to develop or purchase nuclear weapons, and both sides agree to resolve the issue of Tehran's enriched uranium stockpile through mutual mechanisms under International Atomic Energy Agency (IAEA) supervision. The U.S. commits to lifting all sanctions against Iran, including UN Security Council resolutions and unilateral sanctions, on a timetable to be finalized in the comprehensive agreement.
Economic reconstruction forms a central component of the accord. The United States, along with regional partners, commits to developing a definitive plan for Iran's reconstruction and economic development, providing at least $300 billion in support. The U.S. will furnish all necessary approvals, waivers, and permissions for relevant financial transactions. Iran has also agreed to hold discussions with Oman regarding future management of the Strait of Hormuz in accordance with international law and the rights of coastal states.
The MoU represents a framework for broader normalization, with both nations committing to non-aggression, non-interference, and respect for each other's territorial integrity. The comprehensive final agreement is expected to address remaining technical details, including enrichment-related matters and Iran's nuclear needs, within the 60-day negotiation window.
Why This Matters
This memorandum marks a potential turning point in U.S.-Iran relations, with immediate practical impacts: the lifting of the naval blockade will restore critical maritime commerce through the Strait of Hormuz, affecting global oil prices and shipping costs; $300 billion in reconstruction aid signals major economic reopening for Iran and opportunities for regional businesses; and the 60-day negotiation window for a comprehensive agreement provides clarity on sanctions relief that investors and exporters have been waiting for. For ordinary citizens in both countries and the region, this means reduced military tensions, restored trade, and potential economic recovery.
Timeline & Sources
Jun 18, 2026
WireIran's IRNA publishes full text of U.S.-Iran MoU