The United States and Iran have signed a memorandum of understanding intended to end months of conflict in the Middle East, with Tehran agreeing to reduce its stockpile of enriched uranium in exchange for sweeping economic relief and the start of broader negotiations over its nuclear program.
The agreement marks the most significant diplomatic breakthrough between the two countries in years following a conflict that began on Feb. 28 after U.S. and Israeli military strikes prompted Iranian retaliation through waves of missile and drone attacks across the region.
President Donald Trump signed the memorandum during a dinner with French President Emmanuel Macron at the Palace of Versailles following the Group of Seven summit on Wednesday, according to a U.S. official cited by AFP.
Iran confirmed the agreement through a separate announcement. Foreign Ministry spokesman Esmaeil Baghaei said the document had been completed through electronic signatures exchanged remotely by the presidents of both countries, according to the state-run IRNA news agency.
“Now it is time to test the implementation of the agreement,” Baghaei said.
He added that Iran did not consider a formal signing ceremony essential.
“A formal ceremony does not really have a place in Iran’s plans,” Baghaei said. “When the text has been signed by the highest officials of both countries, violating it will naturally carry greater consequences. Based on our experience, we preferred this approach.”
Under the memorandum, Washington agreed to move quickly toward lifting oil sanctions that have weighed heavily on Iran’s economy for years.
The United States also committed to facilitating the release of a proposed $300 billion reconstruction fund backed by regional partners once a comprehensive agreement on Iran’s nuclear program is finalized. U.S. officials emphasized that Washington would not be required to contribute financially to the fund.
Officials described the memorandum as an interim arrangement designed to halt hostilities while creating a framework for addressing more complicated issues surrounding Iran’s long-term nuclear activities.
The document calls for Iran to reduce its stockpile of enriched uranium, with officials indicating that the material would likely be diluted under the supervision of the International Atomic Energy Agency, the United Nations’ nuclear watchdog.
International monitoring is expected to play a central role in verifying Iran’s compliance during the implementation phase.
The memorandum establishes a two-month negotiating period during which both governments will seek to transform the framework into a comprehensive agreement covering nuclear safeguards, sanctions relief, regional security and economic cooperation.
One of the first tangible outcomes anticipated from the agreement is the reopening of the Strait of Hormuz, one of the world’s most strategically important shipping lanes and a vital corridor for global oil and liquefied natural gas exports.
The reopening of the waterway is expected to ease pressure on international energy markets after months of disruption caused by the conflict.
The reconstruction initiative outlined in the memorandum is intended to support Iran’s postwar recovery while encouraging foreign investment in key sectors, although officials stressed that financial assistance will remain conditional on Tehran fulfilling its obligations under the agreement.
While the memorandum does not resolve every outstanding dispute between Washington and Tehran, it establishes a roadmap for continued diplomacy after months of military confrontation.
Negotiators from both countries are expected to begin technical discussions immediately as they work toward converting the memorandum into a binding agreement before the conclusion of the two-month negotiating window.
