The Memorandum of Understanding (MoU) between the United States and Iran officially expired on Monday, August 17, after weeks of disagreements and renewed hostilities between the two countries.
The agreement, signed on June 17 following talks mediated by Pakistan, was designed to establish a 60-day period for negotiations aimed at achieving a broader peace deal and ending the conflict that began on February 28.
However, disagreements over the implementation of key provisions, particularly the reopening of the Strait of Hormuz, quickly undermined the agreement.
Under the MoU, Iran agreed to facilitate the safe passage of commercial vessels through the Strait of Hormuz, while the US committed to ending its naval blockade, easing sanctions and supporting a reconstruction and economic development package worth at least $300 billion.
Iran also reaffirmed that it would not seek to develop nuclear weapons and agreed to negotiate over uranium enrichment.
One of the biggest disputes involved shipping routes through the Strait of Hormuz. Oman proposed a route close to its coast, backed by the US, while Iran had previously designated a different route closer to its own coastline.
The disagreement escalated after a commercial vessel was struck by a projectile on June 25. The US blamed Iran and subsequently launched strikes against Iranian military facilities. Iran condemned the attacks as violations of the MoU and retaliated against US military installations in the region.
By July 7, US President Donald Trump declared that the agreement was “over” as fighting continued.
The two sides have since accused each other of violating the agreement. Iran has said that the US suspended its commitments, while Washington has blamed Tehran for attacks and restrictions affecting commercial shipping.
Another major dispute concerned Lebanon. Although the MoU called for an end to military operations on all fronts, including Lebanon, it did not clearly address Israel’s role or its ongoing military presence there.
The agreement also promised a $300 billion reconstruction and development plan for Iran but failed to clearly explain who would provide the money or how the funds would be administered.
With the MoU now expired, negotiations between Washington and Tehran remain deadlocked. Iran has said it is no longer engaging directly with the US because of what it describes as American violations of the agreement.
Pakistan has continued efforts to revive direct talks, while Iran has held discussions with Oman over the future management of the Strait of Hormuz.
Experts say the collapse of the MoU does not necessarily end the possibility of future negotiations, but major disagreements over the Strait of Hormuz, sanctions, security and regional conflicts remain significant obstacles to a new agreement.
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