The United States and Iran have signed a historic agreement aimed at ending months of conflict in the Middle East, with both sides committing to a permanent ceasefire, a phased lifting of sanctions and a massive $300 billion reconstruction plan for Iran.
The memorandum of understanding, electronically signed by US President Donald Trump and Iranian President Masoud Pezeshkian, is expected to be formally commemorated during a ceremony in Switzerland on Friday, marking the start of a 60-day period of negotiations toward a final agreement.
The deal follows months of tensions triggered by US-Israeli military strikes on Iran in February, which destabilised the region and sent shockwaves through global energy markets.
Under the agreement, the United States and its regional partners will create a reconstruction and economic development programme worth at least $300 billion to support Iran’s recovery.
The initiative is designed to rebuild critical infrastructure and revive economic activities after months of conflict.A major component of the agreement sees Iran reaffirming its commitment not to develop or acquire nuclear weapons.
According to the memorandum, Tehran’s stockpile of enriched uranium will be handled through a mechanism agreed upon by both parties, with the International Atomic Energy Agency overseeing the process. Until a final agreement is reached, Iran will maintain the current status of its nuclear programme, while Washington pledged not to impose new sanctions or deploy additional forces in the region.
The United States, Iran and their allies agreed to immediately halt military operations across all fronts, including Lebanon.
Both countries pledged not to engage in further acts of war or use force against one another and committed to respecting the sovereignty and territorial integrity of regional states.
The two countries agreed to conclude negotiations on a permanent settlement within 60 days, although the deadline could be extended with mutual consent.
Technical-level discussions are expected to begin after Friday’s ceremony in Switzerland.
Washington agreed to begin removing the blockade imposed on Iranian ports on April 13, with the restrictions expected to be completely lifted within 30 days.
The agreement also provides for the withdrawal of US forces from areas close to Iran within 30 days after the signing of a final deal
Iran pledged to ensure safe passage for commercial vessels through the Strait of Hormuz and surrounding waters for an initial 60-day period.
Maritime traffic is expected to resume immediately and return fully to normal within 30 days after mines are cleared from the strategic waterway.
The United States committed to removing all sanctions on Iran and unlocking frozen Iranian assets once the agreement is implemented.
The US Treasury will immediately issue waivers permitting Iranian crude oil exports and related financial, insurance and transport services while the process of permanently lifting sanctions is completed.
Pakistan Prime Minister Shehbaz Sharif, who played a mediating role, confirmed that the memorandum was signed electronically on Thursday.
Sharif said a ceremony in Switzerland would officially launch the next phase of talks aimed at securing a lasting peace agreement.
According to the agreement, the final deal will be backed by a binding resolution of the United Nations Security Council, giving it international legal recognition.
The breakthrough agreement marks one of the most significant diplomatic developments in the Middle East in recent years and could reshape regional security, energy markets and international relations.
