Iran Deal Terms Revealed
US Officials Confirm Iran Deal Includes Uranium Dilution, Sanctions Waived, Strait Opening
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US officials publicly read the terms of a preliminary peace deal with Iran on June 17, known as the Islamabad Memorandum of Understanding. The agreement calls for Iran to dilute its stockpile of highly enriched uranium, lift sanctions, and keep the Strait of Hormuz open toll-free for 60 days, according to AP News.
The deal ends 110 days of active combat between the US, Israel, and Iran. A formal signing is scheduled for Switzerland on June 19. President Trump called it a deal that "achieves everything we set out to accomplish," but warned, "If they don't behave, we'll go right back to dropping bombs," CBS News reported.
What the Islamabad Deal Actually Requires
The memorandum sets three core demands on Iran. First, Iran must dilute its stockpile of highly enriched uranium — the type closest to weapons-grade. Second, the US will waive economic sanctions. Third, Iran must keep the Strait of Hormuz open and free of tolls for 60 days, per AP News.
The MoU is not a final treaty. It opens a 60-day window to negotiate a permanent deal on Iran's nuclear program, Courthouse News noted. Iran's Parliamentary Speaker Mohammad Bagher Ghalibaf digitally signed the preliminary framework, according to TIME.
A 110-Day War That Shocked Global Energy Markets
The conflict started on February 28, 2026, when the US and Israel launched Operation Epic Fury. The strikes killed Supreme Leader Ali Khamenei on the first day. Iran retaliated by blocking the Strait of Hormuz — a narrow waterway that carries roughly 20% of the world's oil supply.
The blockade forced OECD countries to drain 163 million barrels from emergency oil reserves, the lowest level since 1990, according to AFP. More than 3,700 people were killed in Lebanon alone since March, Amnesty International reported. The conflict caused a global energy shock that pushed world leaders to push hard for a deal.
$25 Billion Released Now, $300 Billion Promised Later
Iran gets immediate economic relief. The US will release $25 billion in frozen Iranian assets the moment the deal is signed, Al Arabiya reported. If a final deal is reached within 60 days, a proposed $300 billion reconstruction package could follow, Bloomberg noted.
Secretary of State Marco Rubio confirmed that Iran's new Supreme Leader, Mojtaba Khamenei — who took power after his father was killed in February — is alive and actively involved. French President Emmanuel Macron called the agreement "a very good deal" that could stabilize global energy markets, The Guardian reported.
Israel Is Not on Board, and That Could Sink the Deal
Israel is the biggest wildcard. Israeli officials said publicly that "Trump's agreement does not bind us," CBS News reported. Israeli troops still occupy southern Lebanon, and the deal affirms Lebanon's territorial integrity — a direct conflict that experts call the most likely flashpoint to collapse the agreement.
The Institute for the Study of War argues the MoU leaves Iran in a stronger position — granting economic relief without requiring permanent nuclear concessions. Critics in the US Senate have called it a "catastrophic capitulation." VP JD Vance is expected to lead the American delegation to the signing in Switzerland on June 19, per Military Times.
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