A look at the text of the agreement between the US and Iran

NEW YORK - A senior US official disclosed what the official said was the full text of the deal between the United States and Iran to cease hostilities, open the Strait of Hormuz and start nuclear talks.

The text of the agreement, as read out loud on a conference call with reporters June 17, is below.

The official spoke on condition of anonymity under ground rules set by the White House.

Reporters from The New York Times have annotated the memorandum of understanding with analysis of the underlying issues.

The United States of America and the Islamic Republic of Iran have jointly agreed in good faith on such-and-such a date on the following.

The United States of America and the Islamic Republic of Iran and their allies in the current war by signing this MOU declare the immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other, and to refrain (from) the threat or use of force against each other and ensuring the territorial integrity and sovereignty of Lebanon.

The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon and other provisions of this paragraph.

The references to Lebanon here amount to remarkable rejections by the United States of Israel’s concerns about the threat posed by Hezbollah, the Iran-aligned militia group based in Lebanon.

Israel has signalled it does not feel bound by any Lebanon-related agreements in the US-Iran talks.

But the language will give Iran the means to pressure President Donald Trump over any future Israeli attacks in Lebanon, and over Israel’s occupation of what it calls a “security zone” in the country’s south. – Anton Troianovski

The United States of America and the Islamic Republic of Iran undertake to respect each other’s sovereignty and territorial integrity, and to refrain from interfering in each other’s internal affairs.

This might seem like boilerplate, but each country has been accused of attempting to meddle in the other’s internal affairs, often violently.

Trump openly called for protesters to overthrow the Iranian regime, and Iran agents have been accused of attempting to assassinate the US president. – Luke Broadwater

The United States of America and the Islamic Republic of Iran commit to negotiating and achieving the final deal in maximum 60 days extendable with mutual consent.

This is a very short timeline. US officials quietly acknowledge a final deal may not be achievable in this period, especially when compared to lengthy previous negotiations with Iran.

But the ambitious time frame would place a potential final deal before the US midterm elections, which could help the president as his domestic popularity slides. – Luke Broadwater

Immediately upon the signing of this MOU, the United States of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days.

During this period, the traffic of vessels will be in proportion to the numbers of prewar traffic being restored by the Islamic Republic of Iran.

The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal.

By removing the blockade, the United States is freeing Iran to export again from its ports – and to have goods delivered to the country as well.

That is a critical, immediate win for the Iranians, whose exports go overwhelmingly to China.

Once the revenue starts flowing in again, Iran’s immediate economic crisis will be relieved.

But the United States will also lose a key element of leverage in the nuclear negotiations, which means the Iranians may have every incentive to dig in and let the 60-day negotiation stretch to months or years. -– David E. Sanger

Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman, and vice versa.

The traffic of commercial vessels will immediately start, and considering the need for removing the technical and military obstacles and demining by the Islamic Republic of Iran, will be instated within 30 days.

The Islamic Republic of Iran will conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.

The key line here is “no charge for 60 days only.” After that, Iran may be able to impose “fees,” which it never did before the war. In other words, the days of free passage may be over.

That would violate one of the key standards described by Secretary of State Marco Rubio: that commerce return to prewar conditions. – David E. Sanger

The United States of America undertakes with regional partners to develop a definitive, mutually agreed plan with at least US$300 billion (S$386.19 billion) for the reconstruction and economic development of the Islamic Republic of Iran.

The mechanism for the implementation of this plan will be finalised as part of a final deal within 60 days.

All required licences, waivers and permissions needed for the relevant financial transactions will be granted by the United States of America.

Trump on June 17 insisted that the United States would not invest in the potential US$300 billion reconstruction fund for Iran.

But he appeared to leave open the possibility that Persian Gulf states could provide the money.

It is a sensitive political issue for the president, given his constant criticism of President Barack Obama for shipping US$1.7 billion in cash to Iran as part of the 2015 nuclear deal that Trump exited. – Anton Troianovski

The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran, including the United Nations Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral U.S. sanctions, primary and secondary, in an agreed-upon schedule as part of the final deal.

The Islamic Republic of Iran and the United States of America acknowledge the critical importance of the sanctions termination issue above mentioned, and express their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them.

Relief from crushing economic sanctions may be the only thing that can persuade Iran to surrender its nuclear programme.

This was the basis for the 2015 Iran nuclear deal, which traded sanctions relief for strict caps on Iran’s nuclear activity.

Those caps were limited to a maximum of 15 years, however, and Trump says he wants much longer – or even permanent – constraints on Iran’s nuclear programme.

A big challenge from here will be determining the “agreed-upon schedule” that establishes what sanctions the United States will remove, and when, as Iran fulfills its nuclear commitments.

That will likely mean a gradual process in which the two mistrustful sides take alternating incremental steps. – Michael Crowley

The Islamic Republic of Iran reaffirms that it shall not procure or develop nuclear weapons.

The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpiled, enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in Paragraph 7, with the minimum methodology to be down-blending on site under the supervision of the IAEA.

The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on the statutory framework being agreed upon in the final deal.

The final deal will confirm the provisions of this paragraph.

The United States of America and the Islamic Republic of Iran acknowledge the critical importance of the nuclear issues above mentioned, and express their intention to immediately address these issues in the negotiation in order to achieve mutual agreement on them.

This is the only paragraph of the agreement that deals directly with the nuclear program – the core cause of the war – and thus is perhaps the most important.

As expected, it is vague on all the main points of contention.

As the word “reaffirms” suggests, there is nothing new about Iran’s promise never to seek or buy a nuclear weapon.

It first made that commitment in 1970, when it ratified the Nuclear Non-Proliferation Treaty, and it repeated it in the opening paragraphs of the 2015 agreement with the Obama administration.)

The paragraph requires Iran to “down-blend” – essentially dilute – the approximately 11 tons of enriched nuclear material in its possession, including 970 pounds that are enriched to 60 per cent, just short of bomb grade.

But it does not require Iran to give up that material and ship it out of the country. Iran has resisted calls to surrender the stockpile.

But it did exactly that in 2015, when under the Obama deal it sent about 97 per cent of Iran’s stockpile at the time to Russia.

That leaves a huge number of issues to be resolved in the next negotiation: whether Iran will keep the nuclear material, whether it will have to shutter all of its major nuclear facilities, whether it will be allowed to continue enriching new material, or suspend that work for something between 13 and 20 years.

In a phone interview Sunday, Trump said that Iran would also agree to a new, far stronger inspection regime. But that too needs to be negotiated.

The reference to “Iran’s nuclear needs” refers to Iran’s insistence on retaining nuclear capability for peaceful, energy-generating needs – a way of keeping its nuclear potential alive. – David E. Sanger

Pending the final deal, the United States of America and the Islamic Republic of Iran agree to maintain the status quo.

The Islamic Republic of Iran will maintain the current status quo of its nuclear programme, and the United States of America will not impose any new sanctions, and will not deploy additional forces in the region.

This clause is an important way to establish a clear baseline for negotiations.

It limits the most obvious ways the United States and Iran could continue jockeying for advantage in an effort to pressure the other side to make additional concessions.

For Iran, maintaining the “status quo” of its nuclear program amounts to leaving its bombed nuclear facilities in ruins and its uranium entombed beneath the rubble of air strikes. – Michael Crowley

The United States of America undertakes that immediately upon the signing of this MOU, and until the termination of sanctions, US Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances, transportation, etc.

This clause in particular has triggered alarm among Iran hawks, who have asked why Trump would even partially relax sanctions on Iran’s oil industry, seemingly as a reward for reopening the Strait of Hormuz.

The United States would be “trading away its most durable economic lever before the hard part of the negotiation has even started,” wrote Miad Maleki, a senior fellow at the hawkish Foundation for Defence of Democracies. – Michael Crowley

The United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon the implementation of this MOU.

The United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during the negotiations.

Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran.

The United States of America undertakes to issue all necessary licenses and authorizations accordingly.

As written, the Iranians get access to their frozen funds – US$24 billion or more – “upon the implementation of this MOU.”

That suggests the money could start flowing very soon, before the follow-on agreement is negotiated.

The proviso that they can be released to “any ultimate beneficiary” designated by Iran’s central bank is critical, because it could be read to mean Iranian military or intelligence officials or business entities on terrorist or sanctions lists could be among the beneficiaries. – David E. Sanger

The United States of America and Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal.

Finalising how a deal will be enforced is perhaps the most important part of any agreement. A US official said the Americans want to make sure all Iranian commitments are “verifiable.” – Luke Broadwater

After signing this MOU and subject to the beginning of the implementation of Paragraphs 1, 4, 5, 10 and 11 of this MOU, and the continuing implementation of these measures, the United States of America and the Islamic Republic of Iran will start negotiations regarding the final deal exclusively on the other paragraphs.

This paragraph is a good indication of how solid or tentative the various parts of the agreement are, and underscores how Iran’s nuclear programme will be the primary focus of further negotiations. – Luke Broadwater

The final deal will be endorsed by a binding UNSC resolution.

The future agreement would get the imprimatur of the United Nations Security Council, as Trump’s deal for the Gaza Strip did in 2025.

But given the gulf that still separates the Iran and US positions on nuclear issues, some analysts doubt this day will ever come.

The agreement makes no reference to Trump’s responsibility to refer whatever final agreement emerges to Congress. – Anton Troianovski and David E. Sanger. NYTIMES

• This article originally appeared in The New York Times