US and Iran Digitally Sign and Immediately Enact 14-Point Memorandum of Understanding to End Military Operations and Reopen Strait of Hormuz
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While a formal agreement has been signed to cease military operations, immediate IRGC drone activity in the Strait of Hormuz and Iran's stated intent to charge tolls for passage, coupled with its non-negotiable stance on defensive capabilities, introduce immediate friction and uncertainty regarding the full implementation and interpretation of the MoU.
📌 Key developments
- US President Donald Trump and Iranian President Masoud Pezeshkian digitally signed a 14-point Memorandum of Understanding (MoU) on June 18, 2026, which took immediate effect, declaring a permanent termination of military operations on all fronts, including Lebanon.
- The MoU commits Iran to facilitating the safe passage of commercial vessels through the Strait of Hormuz for 60 days without charge, after which Iran intends to charge tolls, asserting the strait 'will not return to pre-war state'.
- Despite the MoU's immediate effect, the Islamic Revolutionary Guard Corps (IRGC) reportedly launched multiple drones at commercial ships in the Strait of Hormuz after the signing, which were intercepted by the US military.
- Iran reaffirmed it will not procure or develop nuclear weapons, with the disposition of stockpiled enriched material to be resolved under IAEA supervision, while maintaining that its defensive capabilities will not be discussed.
- The agreement includes a plan for a reconstruction and economic development program for Iran valued at no less than $300 billion, with the US committing to lift its naval blockade and sanctions.
- US President Trump indicated a shift in US policy, stating that Iran should be allowed to possess some ballistic missiles, a departure from previous US and Israeli objectives.
💡 Why it matters
This development is crucial as it formally ends a period of intense military conflict and establishes a diplomatic pathway for resolving long-standing issues, including Iran's nuclear program and regional security. However, the immediate IRGC actions and Iran's stance on its defense capabilities and Hormuz tolls highlight potential challenges and differing interpretations that could undermine the fragile peace.
👀 What to watch
- Any further military actions or statements from the IRGC regarding the Strait of Hormuz or regional operations.
- Statements from Iranian officials on the implementation of the MoU, particularly regarding the nuclear program and the status of enriched uranium.
- Reactions from regional allies and adversaries, especially Israel, to the terms and immediate effects of the MoU.