Hormuz Strait reopening, naval blockade lifted, sanctions relief: What is inside US-Iran draft peace deal

Finally, the moment that the world has been waiting for is here. US President Donald Trump announced on 14 June that a peace deal with Iran is now complete.

On Monday, Iranian media published details of a 14-point draft memorandum of understanding (MoU) between Tehran and Washington, laying out a proposed framework to end the war and move towards a final agreement.

Iran's semi-official Mehr news agency said the finalisation of the text of the MoU on ending the war would bring about an immediate and permanent halt to the military operations on all fronts, including Lebanon, and terminate the US naval blockade against Iran.

The development came hours after Trump announced the completion of a deal in a Truth Social post. He wrote, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! 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. Ships of the World, start your engines. Let the oil flow."

What does the draft MOU include?

While these points have not been confirmed officially by either side yet, here's what the draft MoU reportedly includes:

1. A permanent ceasefire on all fronts, including Lebanon. The Mehr report noted, "Under the agreements reached, the war and military operations on all fronts, including Lebanon, are ended immediately and permanently."

2. It also includes a US commitment not to interfere in the Islamic Republic's internal affairs and to respect the sovereignty of the country.

3. The draft MoU also reportedly states that Washington must withdraw its forces from around Tehran and refrain from deploying additional troops to the region or imposing new sanctions during the negotiation period.

4. It also provides for the full lifting of the US naval blockade against Tehran within 30 days. The US President imposed a naval blockade on 13 April, in retaliation for Tehran's decision to keep the Strait of Hormuz shut, and it was announced days after a ceasefire was announced

5. The draft MoU also called for reopening the Strait of Hormuz within 30 days under Iranian arrangements. Mehr reported that the MoU also includes a monitoring mechanism to oversee the implementation of the agreement.

6. Additionally, the US will also suspend sanctions on Iranian oil sales, petrochemical products, and derivatives while allowing Tehran complete access to the financial proceeds.

7. During the 60-day negotiation period, it also seeks the release of $24 billion in frozen Iranian assets, with roughly half of the amount to be made available to Tehran before the final talks commence.

8. The final agreement would include the complete lifting of the primary and secondary sanctions along with the termination of relevant UN Security Council and International Atomic Energy Agency Board of Governors resolutions.

9. The draft MoU has also set a 60-day negotiation period to reach a full agreement focused on nuclear issues and sanctions relief. Iran would reiterate its commitment under the Nuclear Non-Proliferation Treaty (NPT) not to produce nuclear weapons.

10. The draft would also require the US and its allies to present reconstruction plans for Tehran worth at least $300 billion.

The MoU also included some terms related to the final agreement, which are as follows:

1. The final negotiations would focus only on enriched material and enrichment activities, sanctions relief and the reconstruction of Iran’s economy.

2. The final agreement would be endorsed through a UN Security Council resolution.

3. The final negotiations will also not commence before half of the Islamic Republic's frozen assets are released, sanctions on Iranian oil are suspended, and the naval blockade is lifted.

4. Mehr also reported that Iran’s missile programme and support for resistance groups were “definitively” excluded from the final negotiation agenda.

Tehran introduced last-minute changes

Separately, Iran's Tasnim News Agency reported, citing a source familiar with the talks, that negotiators made last-minute revisions to the draft agreement, including clauses concerning the management of the Strait of Hormuz.

The source also said assurances regarding Lebanon's sovereignty and territorial integrity were added during the final phase of discussions. According to the report, these guarantees influenced Iran's decision not to proceed with a planned retaliation following Israeli strikes on Beirut's southern suburbs.