US, Iran sign MOU to end the war, officials say

WASHINGTON,— The United States and Iran have signed a memorandum of understanding to end a nearly four-month war, senior U.S. officials said Monday, with a formal signing ceremony set for Friday and shipping traffic through the Strait of Hormuz expected to increase gradually.

President Donald Trump, Vice President JD Vance and Iranian parliament Speaker Mohammad Bagher Qalibaf signed the memorandum, one U.S. official said.

The agreement, reached after weeks of negotiations, brought relief to financial markets, though risks remain. The pact puts off what could be difficult talks over containing Iran’s nuclear program.

The deal is still a framework, but officials said it marks the biggest step yet toward ending a conflict that has killed thousands and shaken energy markets since joint U.S.-Israeli strikes on Iran in February started the war.

The memorandum will set the rules for how the U.S. and Iran will deal with each other going forward, said one official, who spoke on the condition of anonymity in a briefing with reporters.

The official stressed that any gains for Iran, including sanctions relief and access to frozen funds, would depend on Tehran’s cooperation with Washington on its nuclear program and its willingness to stop funding what the official called “radicalism” in the region.

“We are prepared to release frozen funds and we are prepared to relieve sanctions, and we’ll do some small gestures of that in the beginning if they make some small gestures to us that show that they’re willing to meet their commitments as well,” a second U.S. official said.

That official added the memorandum would be made public within 24 to 48 hours.

In the near term, the agreement will allow the immediate reopening of the Strait of Hormuz, a key shipping lane for global oil and gas that Iran has kept largely closed for months. One official warned it would take time before traffic returns to normal levels.

“You will see a significant increase in traffic in the Strait of Hormuz, actually starting already, and that will ramp up slowly over time,” the official said.

“We probably won’t return to normal in two weeks, but we will see a significant increase in strait traffic,” the official added.

Israel’s withdrawal from Lebanon is not a condition of the agreement between the United States and Iran, a senior U.S. official said Monday. Israel will retain the right to defend itself against any attacks by Hezbollah, the official said.

(With files from Reuters)