After months of fighting across the region, the United States and Iran appear to be nearing an agreement to end hostilities. US President Trump Donald Trump digitally signed a 14-point memorandum of understanding during a visit to Versailles, demonstrating significant progress has been made on the peace deal. US and Iranian diplomats have met in Switzerland to further define the circumstances for peace.
However promising this may sound, the first aspect of the fourteen-point plan is proving challenging to achieve. As The Gaudie reported previously, fighting continues between Israel and Hezbollah in Southern Lebanon, and the US-Iranian memorandum of understanding (MOU) dictates that Lebanon’s territorial sovereignty must be respected, and “military operations on all fronts” must cease.
The MOU also mandates that the US and Iran will refrain from intervening in each other’s internal affairs, and will cooperate to finalise the deal within 60 days. Unrest in Iran earlier this year was one of the catalysts for this conflict, when President Trump threatened to attack Iran after reports of thousands of civilian deaths at riots and an internet blackout. However, this issue was largely absent from the President’s rhetoric at the beginning of the conflict, which claimed Iran was planning a preliminary strike against US interests across the region.
To stabilise the global economy, the US naval blockade of the Strait of Hormuz will be lifted, allowing Iran to resume exporting its oil via the sea. Efforts to remove sea mines and other hazards to navigation produced by the conflict will begin in the thirty days after the signing of the MOU. A joint Iranian-Omani arrangement will be reached to manage the Strait following international law and coordinating with Gulf countries. A maritime coalition led by the UK and France has been preparing to help mine clearance and provide escort to commercial ships in the Strait.
Another crucial part of the deal is the prospect of Iran procuring nuclear weapons. Despite US intelligence indicating that Iran’s nuclear programme ceased in 2003, ensuring that this status quo remains unchanged has proved a key challenge in negotiations. In 2025, following a briefer clash between Israel and Iran, President Trump launched strikes on Iran’s nuclear facilities. Under the 14-point plan, enriched material inside Iran will be disposed of under the supervision of the International Atomic Energy Agency (IAEA). Further details will be discussed as part of the final agreement to be finalised 60 days after the MOU.
To help repair damage caused by the conflict, the US will lift its sanctions on Iran, including those approved by the United Nations Security Council (UNSC) and IAEA. Reparations with a value of $300 Billion will be paid by the US to help Iran rebuild after the conflict. While international sanctions had been detrimental to Iran’s economy prior to the 2026 conflict, the opening of hostilities had inflicted an estimated $270 Billion worth of damage to the country. This was according to a report by the Wall Street Journal in April.
Once all details of the peace agreement are finalised by the US and Iran, the deal will be written into international law by a UNSC resolution. Currently, Bahrain, Colombia, the Dominican Republic of the Congo, Denmark, Greece, Latvia, Liberia, Pakistan, Panama, and Somalia make up the UNSC alongside permanent members China, France, United Kingdom, Russia and the United States. President Trump has been previously critical of the United Nations claiming “All [the United Nations does] is write a really strongly worded letter.”
If the deal is able to be finalised and put into effect, it could mark the beginning of a new era for the Middle East. While small-scale conflicts will remain ongoing and the region’s issues far from resolved, the recurrence of major fighting between the US, Israel and Iran and its proxies will come to a close. This would bring the Middle East closer to the status quo seen before the October 7th attacks in 2023. However, with the exception of the situation in Gaza, which is absent from the 14-point plan agreed between Iran and the United States.
