The United States and Iran have outlined a wide-ranging memorandum of understanding that sets the stage for a ceasefire, economic recovery, and the eventual removal of sanctions.

According to details released by a senior US official, the agreement commits both countries to an immediate and lasting end to military hostilities across all fronts. The two sides also pledged to respect each other’s sovereignty and refrain from any form of aggression or interference in domestic affairs.

The memorandum provides for negotiations toward a comprehensive final agreement within 60 days. As part of the initial steps, Washington is expected to dismantle its naval blockade and withdraw forces from areas near Iran, while Tehran will facilitate the safe passage of commercial vessels through key waterways.

A major highlight of the deal is a proposed reconstruction and development initiative valued at no less than $300 billion, aimed at revitalising Iran’s economy with support from the United States and regional partners.

The agreement also outlines a phased termination of sanctions, including those imposed by the United States and international bodies, subject to the terms of the final deal.

On the nuclear front, Iran reaffirmed its commitment not to pursue nuclear weapons, while both parties agreed to negotiate the handling of enriched materials under international supervision.

Until a final agreement is reached, both sides have committed to maintaining the current status quo, avoiding further escalation and refraining from new sanctions or military deployments.