US-Iran Memorandum Expires: Why the Deal Collapsed
Theo Al Jazeera English - Sarah Shamim
The US-Iran memorandum of understanding on a ceasefire has expired after two months, with the Pakistan-mediated deal collapsing within days. Disputes over shipping routes through the Strait of Hormuz and Israel's actions in Lebanon drove the breakdown, leaving the war unresolved.
The memorandum of understanding (MoU) signed between the US and Iran on June 17 expired on Monday as negotiations between the two sides stalled. Although large-scale clashes have paused, the war that began on February 28 remains unresolved.
The Pakistan-mediated MoU was expected to open a 60-day period of peace negotiations, including provisions to reopen the Strait of Hormuz, the conflict's main flashpoint. However, vague wording in several clauses fueled major disagreements, especially over control of shipping routes through the strait. Iran attacked vessels that did not follow routes it had approved, prompting the US to resume airstrikes and triggering retaliatory strikes on US forces in Gulf states, Jordan, and energy infrastructure.
Contents of the Agreement
The MoU, consisting of 14 points, was signed between Iranian President Masoud Pezeshkian and US President Donald Trump after high-level talks chaired by Pakistan. Both sides committed to an "immediate and permanent cessation of military operations on all fronts, including in Lebanon."
The US agreed to lift its naval blockade within 30 days, withdraw forces from near Iran after reaching a "final agreement," and build a reconstruction package worth at least $300 billion. Washington also pledged to lift sanctions, grant waivers for Iranian oil exports, and allow Tehran access to frozen overseas assets.
In return, Iran committed to clearing mines in the Strait of Hormuz, allowing free passage of vessels for 60 days, reaffirming it would not pursue nuclear weapons, and expressing readiness to negotiate on uranium enrichment.
Why It Collapsed
According to Joey Hood, former acting director of the Office of Iranian Affairs at the US State Department, the MoU was "doomed to fail" because it was "poorly drafted, allowing Iran to interpret it as asserting sovereignty over the Strait of Hormuz and Lebanon's future."
The three most contentious clauses were:
Article 5 on the "safe passage of commercial vessels" through Hormuz. While the US favored a route near Oman's coast, Iran published a map requiring ships to stay close to its shores and deemed the Omani side of the strait "restricted." Several vessels following the Omani route were attacked in late June, prompting the US to resume airstrikes for nearly two weeks.
Article 1 on ending military operations on all fronts, including Lebanon, but without mentioning Israel. Iran argued that Israeli attacks should cease under the MoU, but Israel denied any obligation. Israel has continued near-daily airstrikes on southern Lebanon, controlling about one-fifth of its territory, killing more than 3,000 people and displacing over a million.
Article 6 on the $300 billion reconstruction package, but without specifying who pays or whether spending is conditional. The MoU also failed to distinguish between US sanctions and those imposed by the United Nations.
Timeline of Collapse
On June 25, the Singapore-flagged vessel Ever Lovely was hit by gunfire while transiting the route near Oman's coast. Iran neither claimed nor denied responsibility. President Trump called it a "foolish violation" of the ceasefire agreement.
Two days later, the US Central Command (CENTCOM) struck missile depots and radar sites along Iran's southern coast. Iran accused the US of violating Article 1 and declared retaliation with strikes on US military bases the same day. Just ten days after signing, the two sides were again exchanging fire.
On July 7, President Trump declared the agreement "terminated" as the US continued airstrikes on Iran. Tehran accused Washington of targeting civilian infrastructure, killing at least 50 people, and announced the suspension of all commitments under the MoU.
Iran now refuses direct talks with the US, instead holding dialogues with Oman on the future management of the Strait of Hormuz. Pakistan continues efforts to revive direct negotiations.
Outlook
Iranian Foreign Ministry spokesman Esmaeil Baghaei called the 60-day deadline "completely meaningless" because the US violated the agreement just weeks after signing. The negotiation track was never launched.
Expert Hood said there is "no indication" of the MoU being revived as both sides hold firm positions. Iran insists on sovereignty over the Strait of Hormuz, while Washington sees this as the main obstacle.
"If Iran allows free passage of vessels again, Trump would respond by lifting the naval blockade and oil sanctions," Hood predicted.
