The United States and Iran signed a 14-point memorandum of understanding on June 17, establishing a ceasefire and setting a 60-day deadline for negotiations to permanently end the war. However, within weeks, the agreement cracked due to renewed escalation of the conflict. While the memorandum announced a cessation of hostilities and the opening of the Strait of Hormuz for merchant ships, key clauses were vaguely worded, leading to mutual accusations of breach. The main disputed clauses are as follows:
Article 5 (Strait of Hormuz): This clause guarantees free passage for commerce, but its interpretation is disputed. Tehran believes this clause implies US recognition of Iran's control over the entire waterway, and that Iran only agreed to waive passage fees for two months; the US insists the text only requires Iran to ensure safe passage and prohibits the enforcement of restrictions or tariffs.
Article 10 (Oil and Sanctions Waivers): The US agreed to grant waivers to allow Iran to export crude oil, petroleum products, and related services, including international banking, insurance, and shipping support.
Article 11 (Unfreezing Financial Assets): The US pledged to make Iran's frozen funds and restricted assets "fully usable," with specific mechanisms to be agreed upon in negotiations.
With no direct diplomatic dialogue between the two sides and no prospect of substantial progress on a final solution in the near future, the prospects for the memorandum after its expiry this Sunday remain uncertain.
