U.S. and Iran Sign 14-Point Ceasefire Memorandum; Israel and Hezbollah Remain Outside Agreement

On June 17, 2026, the United States and Iran officially signed a 14-point Memorandum of Understanding (MOU) aimed at ending military hostilities and restoring regional stability. The agreement, formally titled the "Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran," was initially signed remotely on June 15 and publicly unveiled on June 17, with a formal in-person signing ceremony planned for Switzerland.

The memorandum establishes an immediate and permanent cessation of all military operations across all theaters, including Lebanon, with both parties committing to refrain from warfare, military action, or threats of force. The agreement mandates that the U.S. will immediately begin lifting its naval blockade of Iran, completing the process within 30 days, while restoring commercial shipping through the Strait of Hormuz within the same timeframe. Iran commits to arranging free, safe passage for commercial vessels between the Persian Gulf and the Gulf of Oman for a 60-day period and will conduct mine-clearing operations within 30 days. A $300 billion reconstruction and economic development fund for Iran, to be implemented through mechanisms finalized within 60 days, represents a central economic component of the agreement.

The accord includes comprehensive sanctions relief, with the U.S. committing to terminate all categories of sanctions—including UN Security Council and International Atomic Energy Agency resolutions, as well as all unilateral American primary and secondary sanctions—according to a timeline to be agreed upon in final negotiations. The U.S. will immediately issue export licenses for Iranian crude oil, petroleum products, and derivatives, along with related financial services including banking, insurance, and shipping. Frozen and restricted Iranian assets and funds will be fully released for use by Iran's central bank and designated beneficiaries.

Regarding nuclear issues, Iran reiterates its commitment not to acquire or develop nuclear weapons. Both nations agree to address the disposal of enriched uranium stockpiles through mechanisms approved by the International Atomic Energy Agency, with on-site dilution under IAEA supervision representing the minimum approach. The agreement establishes a 60-day negotiation window for a final binding accord, renewable by mutual consent, with an implementation mechanism to monitor compliance. However, the agreement faces significant challenges: Israel and Hezbollah have not signed the MOU and have publicly stated they will not be bound by its terms. Israel has indicated it will continue defensive military operations and maintain occupation of substantial Lebanese territory, while Iran demands Israeli military withdrawal per the agreement. Chinese Foreign Ministry spokesman Lin Jian called on all relevant parties, including Israel, to support implementation of the first-phase memorandum and advance second-phase negotiations.