The conflict between the United States and Iran has grown more intense in recent days, and a short-lived interim peace agreement has fallen apart before even reaching its one-month anniversary.
The Memorandum of Understanding was designed to bring an immediate halt to all military activity and reopen the Strait of Hormuz — a vital passage for the world’s oil and gas supply. The agreement also laid the groundwork for broader negotiations aimed at reaching a lasting peace deal and addressing Iran’s nuclear program, all within a 60-day window.
Below is a look at the key provisions of the agreement and how the situation has unfolded on the ground.
CEASEFIRE CLAUSE
The agreement stated that both the United States and the Islamic Republic of Iran, along with their allies, would immediately and permanently end all military operations across all fronts — including in Lebanon — and pledged not to initiate any future military action or use of force against one another, while also committing to uphold Lebanon’s territorial integrity and sovereignty.
WHERE THINGS STAND: The U.S. has carried out multiple days of airstrikes against Iran in response to Iranian attacks on commercial vessels in the Strait of Hormuz. Iran has retaliated by striking Arab nations where American troops are stationed. A separate ceasefire between Israel and Lebanon’s Iran-backed Hezbollah, reached shortly after the Iran agreement, has largely held despite renewed tensions elsewhere in the region.
STRAIT OF HORMUZ ACCESS
Under the deal, Iran agreed to use its best efforts to allow commercial ships to pass safely through the strait — from the Persian Gulf to the Sea of Oman and back — at no cost for the first 60 days. The agreement also called for Iran to work with the Sultanate of Oman and other Persian Gulf coastal nations to determine how the strait would be managed going forward, in line with international law.
WHERE THINGS STAND: This provision appears to be the central sticking point that unraveled the deal. Iran has interpreted the language as granting it the authority to manage and potentially charge fees for transit through the strait after the 60-day free period expires. The United States and other nations reject that interpretation, arguing the waterway should remain freely accessible to all, as it was before the conflict began. The U.S. established an alternative shipping route along Oman’s coast, outside of Iranian control. When Iran began attacking ships using that route, it reignited the broader conflict. Shipping traffic through the strait increased following the deal’s signing but never returned to prewar levels, and has dropped sharply again as the fighting has resumed.
NAVAL BLOCKADE
The agreement required the U.S. to begin lifting its naval blockade on Iran immediately after signing, with a full removal within 30 days. It also called for U.S. forces to withdraw from areas near Iran within 30 days of a final deal being reached.
WHERE THINGS STAND: The U.S. reinstated its blockade on Iranian ports this week, pointing to Iran’s attacks on commercial shipping in the Strait of Hormuz as justification. On Thursday, U.S. forces fired on a vessel they said was attempting to break through the blockade.
OIL EXPORT WAIVERS
The deal required the U.S. Treasury Department to issue waivers allowing Iranian crude oil, petroleum products, and related services — including banking and insurance — to flow freely, effective immediately upon signing and continuing until sanctions were formally lifted.
WHERE THINGS STAND: The U.S. did issue those waivers, but later revoked them following Iran’s renewed attacks on shipping.
TIMELINE FOR A FINAL DEAL
Both nations committed to negotiating and finalizing a comprehensive agreement within 60 days, with the possibility of extending that deadline by mutual agreement. Broader negotiations were set to begin once both sides started fulfilling their obligations under the interim agreement.
WHERE THINGS STAND: Talks appear to have been put on hold during last week’s funeral for Iran’s Supreme Leader Ayatollah Ali Khamenei, who was killed during the opening strikes carried out by the U.S. and Israel. It is not known whether negotiations have since resumed or whether any meaningful progress has been made. The 60-day timeline points to a deadline in mid-August.
NUCLEAR PROGRAM
Iran reaffirmed in the agreement that it would not pursue or develop nuclear weapons. Both sides agreed to work out a plan for dealing with Iran’s stockpile of enriched nuclear material, with the minimum approach being a process called downblending — reducing the enrichment level on-site under the supervision of the International Atomic Energy Agency. Further discussions on enrichment and related nuclear matters were to be addressed in the final deal.
WHERE THINGS STAND: It remains unclear whether any headway has been made toward the ambitious goal of resolving the nuclear issue within 60 days. Iran has not publicly offered any concessions and continues to maintain that its nuclear program is intended solely for peaceful purposes. The country has also refused to allow International Atomic Energy Agency inspectors access to nuclear sites that were bombed, where highly enriched uranium is believed to be buried.
The interim agreement also included a provision for a $300 billion reconstruction fund for Iran as part of any final deal, though the source of that funding has not been determined. The U.S. pledged to remove all sanctions under a final agreement, but American officials have consistently tied that commitment to measurable progress on the nuclear issue and other concerns.
