What you need to know about the preliminary U.S.-Iran agreement signed by Trump

Preliminary U.S.-Iran Memorandum Outlines Ceasefire Terms and 60-Day Negotiation Window

In this photo provided by the Islamic Republic News Agency (IRNA), Iranian President Masoud Pezeshkian displays a memorandum of understanding signed with U.S. President Trump aimed at ending the war and launching negotiations on a broader agreement, in Tehran, Iran, early Thursday.

Iranian Presidency Office via AP

Vice President JD Vance postponed his planned trip to Switzerland for negotiations on the terms of a peace agreement with Iran scheduled for Friday. The reason for the postponement remains unspecified, though hundreds of journalists had assembled in Lucerne. The delay has prompted questions about implementation of the memorandum of understanding signed by President Trump on Wednesday to end hostilities.

Israel continued military operations in Lebanon after the signing, with Lebanese media reporting at least 18 deaths in overnight strikes and Israeli officials stating that four soldiers were killed in southern Lebanon. The memorandum calls for termination of military operations on all fronts, including Lebanon.

The following sections detail the agreement's provisions and the positions of the parties involved.

U.S. Ends Naval Blockade

The three-and-a-half-month conflict, which began on February 28, resulted in thousands of deaths across the region and affected global energy and commodity markets, according to United Nations assessments. Following the memorandum, the United States ended its naval blockade of Iran. The document also requires the reopening of the Strait of Hormuz for commercial traffic.

President Trump posted on Truth Social that ships could resume transit. The agreement establishes a 60-day period, extendable by mutual consent, for further talks on outstanding issues. Prior to signing, Trump stated at the G7 summit that the memorandum could be set aside if parties did not comply with its terms.

Iranian state media reported that Iran's national security council would suspend transit tolls for 60 days under the agreement, while requiring ships to obtain permission through a newly created Persian Gulf Strait Authority.

Israeli Position on Lebanon Operations

The memorandum requires an end to military operations in Lebanon. Israeli forces have conducted operations in southern Lebanon targeting Hezbollah, which Israeli officials state has resulted in more than 3,800 deaths according to Lebanon's Health Ministry. Iranian Foreign Minister Abbas Araghchi stated that Israeli withdrawal from occupied areas in southern Lebanon is required for the conflict to end fully.

Israel did not participate directly in the U.S.-Iran negotiations. Trump indicated he provided Israel with a copy of the document prior to signing. Israeli Prime Minister Benjamin Netanyahu stated that forces would remain in southern Lebanon for as long as required by security considerations. Israel's military issued a map designating an expanded area in southern Lebanon as a buffer zone under its control.

Israeli National Security Minister Itamar Ben-Gvir stated that the agreement does not bind Israel. Vice President Vance responded at a press conference that Trump remains the only head of state expressing support for Israel under current conditions. The agreement does not alter Israel's stated operational objectives in Lebanon.

Economic Provisions and U.S. Rationale

The memorandum requires immediate termination of military operations on all fronts and prohibits initiation of further hostilities between the United States and Iran. U.S. Central Command confirmed the end of the naval blockade on Thursday.

Trump stated at a news conference that the decision to sign reflected concerns over potential economic effects. U.S. gasoline prices and inflation indicators had risen during the conflict period, contributing to shifts in approval ratings. The agreement also suspends certain transit fees in the Strait of Hormuz for the initial 60-day period.

Financial and Sanctions Provisions

The memorandum directs the United States to work with regional partners on establishing a reconstruction and development fund of at least $300 billion for Iran, with Vice President Vance indicating that Gulf Arab states would contribute. It further provides for the unfreezing of Iranian assets held abroad, with Iranian military adviser Mohsen Rezaei stating a target figure of $24 billion in discussions with CNN.

The agreement authorizes sanction waivers permitting immediate Iranian oil sales. It also includes language opening the possibility of lifting remaining U.S. and international sanctions imposed since 1979. These measures exceed the scope of sanctions relief in the 2015 Joint Comprehensive Plan of Action, which conditioned relief on limits to Iran's uranium stockpile.

Nuclear Program Commitments

The memorandum records Iran's commitment not to procure or develop nuclear weapons, a pledge previously included in the 2015 JCPOA. Substantive negotiations on Iran's nuclear program have not yet begun under the new framework. The 2015 agreement involved the United States, United Kingdom, France, Germany, Russia, and China and spanned 159 pages with technical input from nuclear experts.

The current memorandum resulted from bilateral discussions involving Steve Witkoff and Jared Kushner. An Iranian diplomat, speaking anonymously to NPR, attributed the lack of progress in one round to insufficient technical expertise on the U.S. side. The U.S. team consulted with experts at Oak Ridge National Laboratory prior to the latest talks. Negotiations on the nuclear file had been underway before the February 28 initiation of U.S. and Israeli strikes.

War Outcomes and Regional Leverage

The conflict caused more than 3,300 Iranian deaths according to Iranian state media, including senior officials, and damaged infrastructure and military capabilities. Iranian forces closed the Strait of Hormuz during the fighting, which restricted global oil transit. Senator Bill Cassidy described the closure as demonstrating leverage over energy markets. Former Secretary of State Antony Blinken noted that the strait had been open prior to the war.

Trump stated on social media that market performance and declining oil prices demonstrated the results of the approach taken. Vice President Vance urged patience with the process. Iran has retained the capacity to affect Strait of Hormuz transit and regional targets, which formed part of the basis for the current agreement. Negotiations scheduled for the coming weeks will address the nuclear program and other issues under the 60-day framework.