Key takeaways from the 14-point memorandum of understanding between US, Iran

Days after it was first announced by President Donald Trump, U.S. officials on Wednesday finally detailed what is in the memorandum of understanding with Iran.

Under the agreement, the critical Strait of Hormuz will be reopened to commercial traffic, the U.S. will lift its naval blockade of Iranian ports and fighting will stop for 60 days while both sides negotiate the terms of a final deal on nuclear weapons and material.

The Memorandum of Understanding's (MOU) terms were read aloud by officials in a call with reporters as Trump spoke at the G-7 summit in France. Written text of the MOU has yet to be released, though an official said the language is final and has been signed. A formal signing ceremony is expected later this week.

Still, doubt was cast on whether a long-term deal is guaranteed.

"If they don't honor that, we'll probably go back to bombing them until they honor it," Trump said in France. "You know, it's amazing what bombs can do."

One senior U.S. official described it as a "gentleman's agreement," but questioned "what's a gentleman's agreement worth with Iranians?"

Here are the key takeaways from the 14-point MOU:

Strait of Hormuz to be reopened for now, but Iran might have a say

The sides agreed the U.S. will start removing its naval blockade of Iranian ports, and Iran will allow commercial traffic through the Strait of Hormuz to be restored to pre-war levels. Roughly one-fifth of the world's oil supply has been caught in the crosshairs of Tehran's stranglehold on the strait, which closed at the beginning of the war, driving up gas prices.

The MOU states there is "no charge" or toll for commercial vessels to pass through the strait -- but "for 60 days only."

It goes on to say the "future administration" of the strait will be worked out by Iran, Oman and other Gulf states, leaving the prospect of future tolling in the region an open question.

U.S. officials argue that tolls will not be reinstated after the 60-day period "because the Persian Gulf states will never agree to an arrangement that doesn't permit toll-free access to the Strait of Hormuz for themselves and their industries."

Iran commits again to not build a nuclear weapon, but finer details unresolved 

The MOU states that Iran has committed to not build a nuclear weapon. This is not new -- it's a commitment they have been making for 50 years. 

It agrees essentially to further discuss the down-blending of highly enriched uranium during future discussions. Iran has hundreds of pounds of uranium enriched to 60%

Administration officials argued that this is the floor, not the ceiling for nuclear talks.

"We will push for more than that, but the fact that they're conceding to that is a major, major win for the United States of America. They're saying we will destroy the enriched stockpile, and this is how we're going to do it at a minimum," one official said.

US will allow Iran to sell oil, and a $300 billion reconstruction account

The MOU states that "immediately upon signing," the Treasury Department will issue waivers and allow export of Iranian crude -- a financial windfall for Iran which has faced sanctions for years.

It also states the U.S. “undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran.” This could include approximately $100 billion in frozen assets. The relief is not immediate and hinges on future Iranian compliance with the agreement.  The MOU also states that if a final deal is made, the U.S. would “terminate all types of sanctions against the Islamic Republic of Iran.” The MOU also states that if a final deal is made, the U.S. would "terminate all types of sanctions against the Islamic Republic of Iran." 

The U.S. will also work with regional partners to develop a $300 billion reconstruction account for Iran. The details of the account will be sorted in the 60-day period. Administration officials argued the MOU doesn't require the U.S. "to pay a cent of money to the Iranians" but rather that if a deal is reached and Iran complies, "we will permit the sanctions relief that would allow, for example, the [United Arab Emirates] to build a power plant in Iran.

Immediate termination of military operations on all fronts, including Lebanon

Lebanon appears three times in the opening line of the MOU. The agreement says in no uncertain terms that Israel shall terminate its war in Lebanon as part of the broader cease-fire in Iran. 

The MOU also states the U.S. is to lower its military force buildup in the region back to pre-war levels 30 days after a final deal is reached.