US-Iran 14-Point MoU Opens 60-Day Window as War Ends and Hormuz Reopens
The United States and Iran signed a 14-point Memorandum of Understanding in Bürgenstock, Switzerland on June 19, ending four months of hostilities and opening a 60-day countdown to a final nuclear agreement that diplomats say will reshape the Middle East and test whether decades of mutual hostility can be replaced by verifiable commitments.
The document, obtained by Bloomberg News and confirmed by Swiss and Qatari mediators, halts Operation Epic Fury — the US-led military campaign that began on February 28 — and commits both sides to a permanent cessation of hostilities across all fronts, including Lebanon. Within hours of signing, President Donald Trump declared the Strait of Hormuz toll-free and ordered the US naval blockade lifted, prompting the first commercial shipping traffic through the waterway since April.
A War Ends, a Clock Starts
The MoU does not constitute a final peace treaty. It is a framework document that commits the two governments to negotiating and signing a comprehensive agreement within 60 days. Iranian Parliament Speaker Mohammad Bagher Ghalibaf signed on Iran’s behalf, while Vice President JD Vance represented the United States at the ceremony in the Swiss canton of Nidwalden. Both sides had already affixed digital signatures to the document on June 15, weeks before the formal ceremony.
Under the terms of the agreement, Iran commits that it will never produce nuclear weapons. The final deal will address Iran’s existing enriched material, its civilian nuclear programme, and all remaining sanctions that the United States, the United Nations, and the European Union have imposed over two decades. The International Atomic Energy Agency will conduct inspections under a protocol that diplomats described as the most intrusive ever accepted by Tehran.
“Whether good faith or bad faith, you cannot trust anybody’s words,” Vice President Vance told reporters before departing Switzerland. “You have to trust what they actually do. And what the president has asked us to do is verify what they are doing, focus less on what they are saying.”.
Hormuz Reopens, Ships Resume Passage
The Strait of Hormuz, which carries roughly 25 percent of the world’s seaborne oil trade and 20 percent of global liquefied natural gas, became a flashpoint during the conflict. Iran’s Revolutionary Guard Corps laid sea mines in the waterway and boarded merchant vessels, creating what The Guardian described as a dual blockade that disrupted insurance markets and drove up freight costs for Asian importers. The US Navy maintained a parallel naval blockade that further constricted traffic.
Trump pre-empted the formal signing ceremony with a post on social media declaring the waterway open. “I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade,” he wrote. “Ships of the World, start your engines. Let the oil flow.” The first vessels transited the strait within 48 hours of the announcement, according to maritime tracking services cited by Reuters.
Iran must clear its own mines and resume merchant shipping between the Persian Gulf and the Sea of Oman within 30 days of signing. The US must withdraw forces from surrounding areas within 30 days of the final agreement. Both obligations are subject to verification by the joint implementation mechanism the MoU establishes.
What the Final Deal Must Deliver
The 60-day deadline was described by Pakistani Prime Minister Shehbaz Sharif — one of the mediating parties alongside Qatar — as producing “encouraging progress” on a roadmap. The MoU specifies that the deadline can be extended by mutual consent, but diplomats who spoke to Reuters cautioned that the hardest questions have been deferred until the final negotiating round.
Among the unresolved issues is the mechanism for releasing frozen Iranian Central Bank assets held in US and European institutions. The MoU commits the US to releasing funds “in step with progress toward a final agreement,” without specifying amounts or timelines. Estimates of frozen Iranian assets range from $50 billion to $120 billion, depending on whether interest accrued over two decades is included.
Secretary of State Marco Rubio is scheduled to travel to the United Arab Emirates, Kuwait, and Bahrain from June 23 to June 25 to discuss the MoU with Gulf partners and the Gulf Cooperation Council. State Department spokesperson Tommy Pigott said Rubio will emphasize “full and free safe transit through the Strait of Hormuz” and “the importance of peace and stability in the region.”.
A CBS News/YouGov poll conducted from June 17 to June 19 found that 57 percent of Americans believe the war created more problems than it solved, and 78 percent said the US should end the conflict now. The margin of error was plus or minus 2.4 percentage points. The findings cut across party lines, with 60 percent of Republicans and 56 percent of self-described MAGA Republicans agreeing the US should exit the conflict immediately.
As both delegations left technical staff behind in Switzerland to continue work on the implementation mechanism, the 60-day clock is now running. The final agreement — if reached — will determine whether the world’s longest-running nuclear standoff ends in a verifiable and durable accord, or collapses into renewed confrontation over the same disputed terms.