The memorandum of understanding (MOU) between the U.S. and Iran follows weeks of intense diplomatic efforts by regional mediators to prevent escalating clashes from reigniting a broader conflict. While full details have yet to be disclosed, and different versions of the MOU are circulating, here are four key elements to look out for.

When Will Hormuz Reopen?

President Donald Trump announced on Sunday that the strategic Strait of Hormuz, effectively closed since February, would reopen for mine-clearing operations after a deal signing on Friday, paving the way for oil shipments to resume. Under the 60-day ceasefire extension, Iran has agreed to remove mines from the waterway and waive transit fees for vessels passing through it. Consequently, the U.S. will also lift the naval blockade on Iranian ports that was imposed in April.

The agreement requires cessation of hostilities, including Iranian attacks on vessels in the Strait and U.S. strikes on Iranian coastal targets. However, it may take some time for ships to feel safe transiting the Strait and for insurance premiums to decrease, reported the Financial Times on Monday. Meanwhile, Iran's Mehr state news reported that the memorandum calls for the reopening of the Strait within 30 days under "Iranian arrangements." The E4 group — UK, France, Germany, and Italy — emphasized that the Strait's reopening must be "unconditional" with unrestricted freedom of navigation, reported The Guardian.

What About Iran's Nuclear Ambitions?

Under the agreement, Iran would reaffirm its commitment not to pursue nuclear weapons, while Tehran and Washington would begin talks on a mechanism to address Iran's stockpile of more than 9,000 kilograms of enriched uranium. At a minimum, the deal requires all enriched uranium to be diluted to lower enrichment levels under the supervision of the International Atomic Energy Agency, including 440 kilograms currently enriched close to weapons-grade levels, reported the Financial Times, citing a U.S. official.

Trump reiterated on Sunday that Iran "will never have a nuclear weapon," and also told The New York Times that if Tehran fails to reach a nuclear agreement, it could face renewed U.S. military strikes. Meanwhile, Pakistani officials said that U.S.-Iran nuclear negotiations will continue over the next 60 days under the ceasefire framework.

Will Israel Cooperate On Lebanon?

A major sticking point in the ceasefire negotiations has been the Israeli hostilities in Lebanon. Iranian Deputy Foreign Minister Kazem Gharibabadi and mediator Pakistani Prime Minister Shehbaz Sharif both stated that the deal mandates an immediate and permanent end to military operations across all fronts, explicitly including Lebanon. However, Trump's initial Truth Social posts focused almost entirely on the Strait of Hormuz and did not mention Lebanon. Before the announcement of the deal, Trump criticized an Israeli strike on Beirut, warning that further military action could undermine ongoing diplomatic efforts.

In a Truth Social post, Trump said Israel had the right to defend itself but argued the attack was disproportionate to the threat, noting that no casualties were reported and urging both sides not to jeopardize the peace process. Israeli Prime Minister Benjamin Netanyahu has domestic political reasons to continue military operations against Iran and its regional allies, including Hezbollah in Lebanon. However, any further escalation could potentially jeopardize a potential U.S.-Iran nuclear agreement.

Does The Deal Involve Unfreezing Iran's Assets?

The U.S. would allow Iran to continue selling oil during the 60-day ceasefire extension, but broader sanctions relief and the release of frozen Iranian assets would be phased in and tied to Tehran's compliance with nuclear negotiations, according to the Financial Times. U.S. officials described the arrangement as "performance-based," with economic benefits expanding as Iran meets its commitments and trust is built between the two sides.

According to a Reuters report, citing an Iranian official, the draft memorandum includes the release of $25 billion in frozen Iranian assets via direct cash transfers and other financial credit lines, alongside a reconstruction and development plan for Iran. However, Vice President JD Vance had written on X on Friday that the Iranians would not receive any cash or funds for signing a deal or attending a meeting, adding that the nation would be entitled to economic benefits only if Tehran meets its obligations.