U.S. President Donald Trump has signed a Memorandum of Understanding (MoU) with Iran, establishing a 60-day framework for negotiations on Tehran’s nuclear programme and setting the stage for the reopening of the strategically important Strait of Hormuz.

Trump announced the development during a dinner with French President Emmanuel Macron at the Palace of Versailles, describing the agreement as a significant step toward resolving a conflict that has persisted since February 2026.

The 14-point agreement is expected to be formally signed on Friday in Geneva, Switzerland. U.S. Vice President JD Vance, Middle East envoy Steve Witkoff, and Jared Kushner are expected to attend the signing ceremony. Pakistan’s Prime Minister Shehbaz Sharif, who reportedly played a mediating role in the talks, confirmed that the formal signing would take place in Switzerland.

Under the terms of the agreement, Iran is expected to reopen the Strait of Hormuz, one of the world’s most critical energy transit routes, and provide toll-free passage through the waterway for 60 days. The strait handles a substantial share of global oil and natural gas shipments.

In return, the United States has agreed to lift its naval blockade within 30 days of the agreement’s implementation. Both sides have also committed to negotiating a comprehensive settlement within the 60-day period, focusing on Iran’s nuclear programme and the easing of economic sanctions.

The memorandum outlines a framework for discussions on Iran’s stockpile of enriched uranium. Iran has reaffirmed its commitment not to pursue the development of nuclear weapons, while the United States has pledged not to impose new sanctions or deploy additional military forces to the region during the negotiation period.

Despite the breakthrough, significant differences remain. Reports indicate that Washington is seeking a 20-year moratorium on uranium enrichment, while Tehran is reportedly unwilling to accept a restriction exceeding 10 years.

The agreement also includes plans for a $300 billion reconstruction fund aimed at supporting Iran’s economy. In addition, the U.S. Treasury is expected to issue waivers allowing Iran to resume crude oil and petroleum exports immediately. Approximately $24 billion in frozen Iranian assets could also be released, although discussions on the implementation timeline are ongoing.

Analysts have cautioned that major obstacles remain before a final settlement can be reached. Steven Cook, a senior fellow specialising in Middle East studies, noted that previous negotiation efforts have often stalled over unresolved differences.

The conflict that preceded the agreement had significant economic consequences, particularly for global energy markets. Disruptions in the Strait of Hormuz contributed to rising oil prices and heightened concerns over global economic growth. Following reports of the agreement framework, oil prices reportedly declined as markets reacted positively to the prospect of restored energy flows.

The memorandum also addresses military operations across the region, including hostilities involving Hezbollah in Lebanon. Both parties have committed to an immediate and permanent cessation of military operations across multiple fronts.

However, Israel is not a signatory to the agreement. Israeli officials have voiced concerns about the arrangement, with Defence Minister Israel Katz stating that Israeli forces would maintain their positions in southern Lebanon and respond decisively to any perceived threats.

Experts have also highlighted the challenges involved in restoring normal shipping operations through the Strait of Hormuz. Security concerns, including the clearing of mines and ensuring safe navigation, are expected to require significant coordination before commercial traffic can fully resume.

Notably, the memorandum does not provide detailed provisions regarding Iran’s ballistic missile programme, an issue that has long been a source of tension between Tehran, Washington, and Israel.

Trump welcomed the agreement on social media, expressing optimism about the restoration of global energy supplies and the progress achieved through the negotiations.

The coming 60 days are expected to be critical as both sides attempt to bridge longstanding differences over nuclear activities, sanctions, and regional security issues in pursuit of a comprehensive and lasting agreement.