Q&A on US-Iran MoU: Significance, key points and its fragility

The presidents of both the United States and Iran have electronically signed a Memorandum of Understanding (MoU) aimed at ending the four-month-long conflict, while media outlets in both countries have published the 14-point text of the agreement. 

What are the key provisions of the MoU? What does it mean for the United States and Iran? Can it withstand the deep differences between the two sides? And what role might Israel play in shaping lasting peace? CGTN spoke with Wang Jin, assistant director of the Institute of Middle East Studies at Northwest University of China, for his insights. The conversation has been lightly edited for clarity and conciseness. 

CGTN: What does the MoU mean for the United States and Iran?

Wang Jin: The agreement reached between the US and Iran is essentially a ceasefire confirmation document and a roadmap for negotiations.

On the one hand, it formalizes the de facto ceasefire that has existed since April 2026. For the United States, the deal helps ease the maritime blockade against Iran and enables a gradual withdrawal of naval and military deployments around Iran, thereby reducing its military burden. For Iran, it implies a corresponding easing of its control over the Strait of Hormuz, while shifting its strategic focus toward domestic political stability and post-war economic reconstruction.

On the other hand, the agreement also establishes a general framework and timeline for subsequent negotiations. According to the MoU, both sides are expected to complete talks within 60 days of signing, focusing on Iran's nuclear issue and related concerns. Under the roadmap, each side is expected to make certain concessions: Iran would dilute its highly enriched uranium, accept partial international oversight, and place some nuclear facilities under international monitoring; the United States would gradually reduce or lift parts of its sanctions regime. Washington would also coordinate Gulf Arab states to mobilize around $300 billion in funding to support Iran's post-war reconstruction. Going forward, both sides are expected to continue engaging with each other to implement and expand the agreement. 

CGTN: What are the key provisions of the MoU?

Wang Jin: The 14-point MoU can be summarized into four main areas. First, ceasefire: both sides commit to a comprehensive ceasefire, including in Lebanon, with the US pledging not to infringe upon Iran's sovereignty.

Second, force withdrawal: the US lifts the maritime blockade on Iran and withdraws military forces from Iran's surrounding regions, while Iran clears mines from the Strait of Hormuz, allows commercial shipping to resume, and restores normal maritime traffic.

Third, financial and sanctions relief: the US agrees to partially unfreeze Iranian assets and permit oil exports, while facilitating funding for reconstruction; it also pledges to gradually lift both primary and secondary sanctions imposed since 2018 and to push for the removal of UN sanctions.

Fourth, negotiations: a 60-day negotiation window is established to address Iran's nuclear program and sanctions relief, with a focus on highly enriched uranium and Iran's nuclear capabilities.

CGTN: What are the main challenges in implementing the MoU, and what influence could Israel have? 

Wang Jin: The MoU is structurally fragile and essentially freezes the conflict rather than resolving it. It formalizes the ceasefire that has existed since April, but lacks strong verification or enforcement mechanisms, relying primarily on bilateral compliance. 

There are also potential divergences in interpretation of key issues. On the Strait of Hormuz, the US demands full and unrestricted reopening within 30 days, with no transit fees or constraints, emphasizing unconditional access for 60 days. Iran agrees to reopen the strait and remove naval mines, but insists on retaining sovereign control in coordination with Oman, without relinquishing regulatory authority or returning to pre-war conditions after this period.

On the nuclear issue, the US demands suspension and dismantlement of uranium enrichment facilities and stronger oversight by the International Atomic Energy Agency. Iran, by contrast, rejects the immediate dismantlement or transfer of its enrichment infrastructure and insists on retaining a limited enrichment capability.

Moreover, Israel may emerge as a key destabilizing factor. The MoU stresses the termination of military operations on all fronts, including in Lebanon, though it doesn't specifically mention Israel. However, domestic opinion in Israel is largely opposed to the US-Iran deal, viewing it as a concession that allows Iran to rebuild military capacity and increases security threats to Israel. With Israel's next parliamentary elections scheduled for October 2026, hardline factions may challenge the agreement. In addition, Hezbollah could re-establish its military presence in southern Lebanon, potentially prompting renewed Israeli military operations in the region, thereby undermining the ceasefire framework.