The Trump administration has finally unveiled the closely held Memorandum of Understanding (MoU) between the United States and Iran aimed at ending the war in the Middle East. US President Donald Trump signed the document in France, while Iranian President Masoud Pezeshkian signed it electronically from Tehran.
The Trump administration has repeatedly argued that the agreement is significantly better for Washington than the Joint Comprehensive Plan of Action (JCPOA) negotiated under former President Barack Obama.
The JCPOA was signed in 2015 between Iran and the P5+1 nations — China, France, Russia, the United Kingdom, the United States and Germany. The multilateral agreement sought to limit Iran’s nuclear activities in exchange for sanctions relief. It imposed strict restrictions on Iran’s nuclear program and subjected it to extensive international inspections.
Trump, however, criticized the deal and withdrew the United States from it in 2018, arguing that it failed to address broader security concerns.
Now that Trump has signed a new agreement with Iran, here is a look at some of the key differences between the JCPOA and the new 14-point US-Iran MoU.
On Iran’s Nuclear Program
Under the JCPOA, Iran agreed not to produce highly enriched uranium or plutonium that could be used in a nuclear weapon. The agreement capped the number and type of centrifuges Iran could operate, limited uranium enrichment levels and restricted the size of Iran’s enriched uranium stockpile. It also established extensive monitoring by the International Atomic Energy Agency (IAEA).
Under Trump’s MoU, Iran reaffirms that it will not procure or develop nuclear weapons. The United States and Iran have agreed to resolve the disposition of enriched material stockpiles through a mutually agreed mechanism, with the minimum methodology being on-site downblending under IAEA supervision.
The two sides have also agreed to discuss enrichment and other mutually agreed matters related to Iran’s nuclear needs, based on a satisfactory framework to be finalized in a future agreement. The final deal is expected to confirm these provisions, while Iran acknowledges the importance of resolving the nuclear issues outlined in the MoU. Both parties have expressed their intention to address these matters immediately through negotiations.
Nuclear Inspection
The JCPOA established a verification mechanism led by the IAEA and overseen by a Joint Commission made up of representatives from all participating parties. The agency initially certified that Iran was meeting its obligations, leading to sanctions relief.
After the United States withdrew from the agreement, Iran gradually exceeded several of the deal’s limits. Tehran increased uranium enrichment, expanded its centrifuge program, resumed activities at key nuclear sites and reduced international access to its facilities.
As compliance on both sides deteriorated, the agreement became largely dormant, and repeated efforts to revive it failed to produce a breakthrough.
Under Trump’s MoU, there is no language mandating any inspection of Iran’s nuclear sites.
Sanctions and Frozen Funds
Under the JCPOA, the European Union, United Nations and United States agreed to lift nuclear-related sanctions on Iran. However, many US sanctions remained in place, including those related to Iran’s ballistic missile program, support for terrorist groups and human rights issues.
While Washington agreed to lift sanctions on Iranian oil exports, restrictions on financial transactions remained, limiting international trade with Iran.
The agreement also provided for the lifting of a United Nations ban on Iran’s transfer of conventional weapons and ballistic missiles after five years, provided the IAEA certified that Iran’s nuclear activities remained civilian in nature.
Under Trump’s MoU, the United States undertakes that immediately upon the signing of the MoU, and until sanctions are terminated, the US Treasury Department will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, along with all associated services, including banking transactions, insurance and transportation.
The agreement also states that the United States will make available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon implementation of the MoU. Both sides will negotiate the procedures governing the release of those funds.
According to the agreement, the funds will be fully usable for payments to beneficiaries designated by the Central Bank of the Islamic Republic of Iran, and the United States undertakes to issue all necessary licenses and authorizations.
Money To Iran
Under the JCPOA, the money Iran received was not a direct payment from the US government. Instead, it involved access to Iranian foreign assets that had been restricted under international sanctions.
The often-cited figure of $150 billion was inaccurate. The amount Iran could access from its foreign reserves was estimated at around $100 billion, with roughly half tied up in foreign debts. According to testimony from then-Treasury Secretary Jacob Lew, the amount Iran would actually be able to use was about $50 billion.
Following implementation of the JCPOA, the United States also sent $1.7 billion to Iran. The payment consisted of $400 million that Iran had placed in a US Foreign Military Sales trust fund and $1.3 billion in interest.
Under Trump’s MoU, the United States undertakes, together with regional partners, to develop a definitive and mutually agreed plan worth at least $300 billion for the reconstruction and economic development of Iran.
The mechanism for implementing the plan is to be finalized as part of a final agreement within 60 days. The United States also undertakes to grant all required licenses, waivers and permissions necessary for the related financial transactions.