U.S. and Iran Sign Memorandum on Sanctions Relief and Regional Stability

The United States and Iran signed a memorandum of understanding yesterday in Versailles that waives some sanctions and outlines steps toward a broader agreement. The text commits both countries to regional peace and stability and restates Iran’s pledge not to build nuclear weapons. Iran also agreed to dilute its stock of highly enriched uranium on-site.

An immediate sanctions waiver will let Iran resume oil exports, an arrangement estimated to generate up to $60 billion a year. Iran’s frozen assets held in Qatar, Oman, and Iraq—reportedly $24 billion—will be released once the memorandum is implemented.

A final agreement would release an additional $300 billion and lift remaining sanctions linked to terrorism, missiles, and human-rights issues. The memorandum does not specify limits on uranium enrichment beyond the down-blending step or set rules for Strait of Hormuz transit after the first 60 days.

President Vance told CNN the Gulf states would supply the $300 billion, but the text assigns the United States and its regional partners to develop the financing plan. A senior administration official told CNN the memorandum is a political document whose wording allows each side to address domestic audiences.

The agreement follows a winter conflict in which Iran attacked Gulf states and closed the Strait of Hormuz. The United States entered the conflict seeking to eliminate Iran’s regional leverage and impose strict nuclear limits. If a final deal is not reached, the United States could reimpose sanctions; Iran could then resume charging transit fees through the strait.

Domestic support for U.S. security commitments in the Middle East has declined, and damaged U.S. bases have highlighted their vulnerability.