On May 24 (local time), The Washington Post broke the blockbuster news: the United States and Iran have agreed on the framework of a Memorandum of Understanding (MoU). Once formally signed, it will fully restore shipping traffic in the Strait of Hormuz within 30 days. This breakthrough brings hope for peace amid months of tensions in the Middle East and significantly eases anxieties in global energy markets.
Core Terms of the Agreement: A Key Reciprocal Step
Under the framework, the MoU adopts the "action-for-action" principle of reciprocity, with these key provisions:
1. Strait Reopening Timeline: Iran will immediately reopen the Strait of Hormuz upon signing and complete demining and other measures within 30 days to restore pre-conflict shipping conditions.
2. Asset Unfreezing: The US will unfreeze $12 billion in Iranian overseas assets in phases as a core first-stage concession.
3. Ceasefire Extension: The current ceasefire will be extended by 60 days, during which a "final agreement" to permanently end hostilities will be negotiated.
4. Regional Ceasefire Scope: Iran, the US, and their allies will announce an immediate halt to military operations on all fronts, including Lebanon.
5. Nuclear Issue: Iran commits to no nuclear weapons, but implementation mechanisms will be discussed separately in two months; the MoU does not include a full nuclear deal.
Notably, as of May 25 (press time), no formal agreement has been signed. US President Trump initially stated on social media that the deal was "essentially done", but later revised this to "not fully finalized" and "no rush to conclude", signaling ongoing uncertainties.
Controversy: Disputes Over Strait Administration
Despite the framework, major disagreements persist over control of the Strait of Hormuz.
Iran’s Stance: Tehran insists the strait is "exclusively controlled and governed by the Islamic Republic of Iran". On May 20, the newly established Persian Gulf Strait Administration issued a statement defining its oversight and requiring all vessels to coordinate and obtain permission. In its first day of enforcement, 31 ships transited, with Chinese and Russian vessels prioritized; non-compliant ships face a $150,000 fee.
US & Gulf Allies: US officials reject any Iranian toll system for strait transit. Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE have jointly written to the International Maritime Organization (IMO) opposing the unilateral administration and related navigational notices.
Outlook: Peace in Sight, but Challenges Remain
The MoU marks the most significant diplomatic breakthrough since the conflict erupted in February 2026. If implemented smoothly, it will ease the global energy crisis and lay the groundwork for long-term Middle East stability.
However, challenges loom: The strait administration dispute remains unresolved. Follow-up nuclear negotiations, US domestic politics, and Israeli opposition could all derail final implementation.