Oil waivers, $300 Billion for Reconstruction: Here is what’s in the agreement between US and Iran

June 18, 2026

Another step towards peace in West Asia has been taken. US President Donald Trump has signed the draft of the US-Iran agreement. Trump officially signed the draft during a dinner held at the Palace of Versailles on Wednesday evening.

According to a report, a US official stated that Trump and Iranian President Masoud Pezeshkian have signed a Memorandum of Understanding (MoU) to end the conflict in West Asia. A senior administration official noted that US Vice President JD Vance and Mohammad Bagher Ghalibaf, representing the Iranian side, had already signed the document.

Iran also confirms the agreement

Iranian Foreign Ministry spokesperson Esmaeil Baghaei, quoted by the state news agency IRNA, said, “The US-Iran peace agreement has been finalized with the signatures of the presidents. Now is the time for the test of the agreement’s implementation.” The formal signing was originally scheduled to take place in Switzerland on Friday. However, Tehran has stated that the proposed meeting in Geneva will still be held as planned.

What are the 14 key terms in the draft?

Immediate and Permanent Ceasefire

By signing this MoU, the US, Iran, and their allies in the current conflict will announce an immediate and permanent cessation of military operations on all fronts, including Lebanon. Neither side will initiate war or military action against the other, nor will they resort to the use of force or threats thereof. They will ensure Lebanon’s sovereignty and territorial integrity; these provisions will be reaffirmed in the final agreement.

Mutual Respect for Sovereignty

The US and Iran will respect each other’s sovereignty and territorial integrity and will not interfere in each other’s internal affairs.

Final Deal Within 60 Days

Both nations will endeavor to conclude negotiations on the final agreement within a maximum of 60 days. This period may be extended by mutual consent.

US to Lift Naval Blockade

Upon the signing of the MoU, the US will begin the process of lifting its naval blockade and other restrictions imposed on Iran. The blockade will be completely lifted within 30 days. During this period, the movement of ships will be restored to pre-war levels. Within 30 days of the final agreement, the US will also withdraw its military presence from areas adjacent to Iran.

Safe Maritime Passage Through Hormuz

Following the signing of the MoU, Iran will make the necessary arrangements to provide safe, toll-free passage for commercial vessels between the Persian Gulf and the Sea of ​​Oman. Normal commercial traffic will be restored within 30 days, following the removal of technical and military obstacles as well as sea mines. Iran will engage in discussions with Oman and other littoral states of the Persian Gulf regarding the future administration of the Strait of Hormuz and maritime services, in accordance with international law and the sovereign rights of the coastal nations.

$300 Billion Reconstruction Plan

The US, in collaboration with its regional partners, will formulate a plan worth at least $300 billion for Iran’s reconstruction and economic development. The implementation mechanism for this plan will be finalized within 60 days as part of the final agreement. The US will provide all necessary licenses, exemptions, and permits required for the essential financial transactions.

Gradual Removal of Sanctions

The US will pledge to lift all sanctions imposed on Iran, in accordance with the schedule determined by the final agreement. This includes UN Security Council resolutions, IAEA Board of Governors resolutions, and US primary and secondary unilateral sanctions. Both nations regard the lifting of sanctions as a matter of utmost importance and have agreed to prioritize this issue in their negotiations to reach a swift consensus.

Iran Reaffirms No Nuclear Weapons

Iran reiterated that it would neither acquire nor develop nuclear weapons. Enriched uranium will be destroyed on-site under IAEA supervision. Iran will not advance its nuclear program until the final agreement is concluded.

Status Quo Until Final Agreement

Both nations will maintain the status quo until the final agreement is reached. Iran will not alter its existing nuclear program, while the US will refrain from imposing new sanctions or deploying additional military forces in the region.

Waivers for Iranian Oil Exports

Upon the signing of the MoU and until the restrictions are lifted, the US Department of the Treasury will issue the necessary waivers for the export of Iranian crude oil, petroleum products, and related products. This will also include associated services such as banking, insurance, and transportation.

Release of Frozen Iranian Assets

The US will release the Iranian funds or assets that had been frozen or seized. Iran’s Central Bank will be able to make payments using these funds. The US will immediately issue waivers for the export of crude oil, petroleum products, and related banking and insurance services.

Joint Mechanism to Monitor Compliance

The US and Iran agree to establish an executive mechanism to monitor the successful implementation of the MoU and adherence to the future final agreement.

Further Talks After Initial Measures

Following the signing of the MoU and the implementation of its paragraphs 1, 4, 5, 10, and 11—and provided these measures remain in effect—both countries will initiate specific negotiations on the remaining provisions of the final agreement.

UN Security Council Backing for Final Pact

The final agreement will be endorsed through a binding United Nations Security Council (UNSC) resolution.