Breaking Down the Reported US-Iran Deal and Its Major Provisions

İrfan Simsar, Pexels

A newly revealed US-Iran peace deal has drawn close attention from lawmakers, allies, and the public. The framework lays out a path toward a broader peace agreement between Washington and Tehran. It also raises major questions about money, security, and Iran’s nuclear program.

The secretive memorandum outlines a 12-point agreement covering nuclear commitments, sanctions relief, maritime security, and a potential $300 billion reconstruction fund for Iran. This article breaks down what the deal includes, the role of the Strait of Hormuz, and Vice President JD Vance’s defense of the terms.

What Does the US-Iran Peace Deal Include?

The memorandum of understanding was signed on Sunday by President Trump and Vice President JD Vance. It outlines commitments on nuclear issues, sanctions relief, maritime security, and the eventual withdrawal of American forces from the region.

Under the agreement, Iran, the United States, and their allies would stop fighting across the region, including in Lebanon. The deal also extends the ceasefire to that country, where US ally Israel and Iranian proxy Hezbollah have been at war.

The framework serves as the basis for broader talks. A 60-day negotiation period will begin after the document’s signing ceremony, which is set for Friday.

The agreement makes no concrete promises about Iran’s nuclear program beyond a pledge never to produce or obtain a nuclear weapon. Iran would also maintain the “status quo” of its nuclear program while talks continue.

How Does the Strait of Hormuz Factor Into the Deal?

One of the most consequential provisions concerns the Strait of Hormuz, a critical oil chokepoint. The memorandum allows Iran to manage the waterway during the 60-day negotiation period.

The deal does not resolve the final status of the waterway. Instead, negotiations will be held between Iran, Oman, and the Gulf states to define future shipping and maritime security arrangements.

According to The New York Post, Oman and Iran have already begun discussions on this point. Regional sources said the two sides aim to charge a fee for “services” provided.

The agreement would pave the way for the $300 billion reconstruction fund for Iran. According to officials, the fund would be paid for by Gulf Arab countries, with no anticipated US contribution.

Other terms offer Iran economic relief as well. The United States would lift its naval blockade, hold off on new sanctions, and refrain from sending more troops to the region during talks.

Washington would also release an unspecified amount of frozen Iranian assets once the memorandum takes effect. The deal would allow Iran to resume oil sales through temporary sanctions waivers.

If a final deal is reached after the 60 days, the United States would withdraw its forces within 30 days and lift all sanctions on Iran.

What Did Vice President Vance Say About the Deal?

Vice President JD Vance defended the terms of the peace deal on “Fox & Friends.” He said the reconstruction fund would not be available “unless they totally transform themselves.”

“You see the propagandists are saying, ‘Here are all the things Iran gets,’ and the fine print, which [is] actually the big print in the actual agreement, is they don’t get any of that stuff unless they totally transform themselves as a country,” Vance said.

Vance stressed that no American money would flow to Iran. “Not a single cent of American money goes to Iran,” he said.

In a separate CBS News interview, Vance said Iran “could have access to” the fund, backed by the Gulf Coast Coalition, so long as Tehran honors its obligations. He also noted that Iran agreed to turn over its stockpile of enriched uranium, allow routine inspections, and not pursue a nuclear weapon.

How Are Critics Responding to the Reconstruction Fund?

The proposed fund has drawn sharp criticism. Newsmax CEO Christopher Ruddy argued that Iran should not receive access to any reconstruction fund at all.

In his opinion piece, Ruddy wrote that the proposal would reward Iran “for surviving a war it provoked.” He also called for reparations to victims of Iranian aggression.

Sen. Lindsey Graham, R-S.C., voiced strong opposition as well. Graham said any reconstruction package for Tehran “would be akin to a Marshall Plan for Germany with the Nazis still in charge.”

Ruddy noted that the deal follows February 28, 2026, strikes by the United States and Israel on Iran’s nuclear and military infrastructure. He reported that the strikes involved more than 2,600 highly selective attacks aimed largely at military targets.

What Happens Next With the US-Iran Agreement?

The administration plans to publish the full text of the agreement on Friday. Until then, many details remain subject to scrutiny from lawmakers and allies.

Several provisions are expected to face intense review. These include questions about uranium enrichment, sanctions relief, American troop withdrawals, and the reconstruction fund.

As of this reporting, neither Washington nor Tehran had publicly released the text of the memorandum. The White House did not respond to questions about the reported text’s accuracy. The proposed reconstruction fund remains one of the most debated points. Supporters frame it as conditional on Iran’s transformation, while critics call it a reward for past aggression.

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