Iran will immediately reopen the Strait of Hormuz to all commercial vessels, and the United States will lift its naval blockade on Iranian ports, waive oil sanctions on Iran, and release frozen Iranian assets, according to corroborated reports from multiple international sources. Iran has committed to not producing or acquiring nuclear weapons, and a final peace agreement between the two nations is expected to be discussed within 60 days of signing the memorandum of understanding.

Discrepancies exist regarding the value of the asset release: one source cited a $25 billion asset release as part of the final draft memorandum, while another mentioned $300 billion in reconstruction aid — a separate category not confirmed as part of the asset release. The U.S. will provide $300 billion in reconstruction aid to Iran, according to Bluesky, and will lift its naval blockade within 30 days after the memorandum is signed, according to Strait Times. The U.S. also agrees not to impose any new sanctions on Iran until a final deal is reached, per Strait Times.

The memorandum of understanding was signed remotely, according to CBS News. President Trump emphasized the agreement is not a final deal and warned the U.S. could resume bombing Iran "if they don't behave," CBS News reported. Iran stated that if Israel continues to maintain troops in Lebanon and carry out attacks, it would be considered a violation of the agreement, according to CBS News. Israel has continued carrying out limited strikes in Lebanon since the agreement was announced, CBS News reported. Iranian tankers are crossing the U.S. naval blockade line, adding to confusion for shippers, according to CBS News. The draft agreement aims to end military hostilities that erupted in late February 2026, according to STL.News. The agreement was brokered by Pakistan as a key mediator, following initial secret talks led by Oman, according to STL.News.