US, Iran sign interim ceasefire agreement

US President Donald Trump and Iranian President Masoud Pezeshkian have signed an interim agreement aimed at ending the war on Wednesday.

The 14-point agreement extends a ceasefire announced in April by another 60 days, including in Lebanon, to allow the two sides to negotiate a final truce.

Both Trump and Iranian President Masoud Pezeshkian have digitally signed the memorandum in English and Farsi, US and Iran officials said, with Iran's foreign ministry saying the agreement was already in effect as of Wednesday.

Trump signed just before a grand dinner with French President Emmanuel Macron at the Palace of Versailles, the site of the signing of the eponymous treaty that formally ended World War One.

Earlier, a senior US official told reporters on Wednesday that both Iran and the US can walk away from the memorandum of understanding they are set to sign on Friday, and upcoming talks are likely to focus on the precise sequencing of the steps previewed in the preliminary accord.

Speaking on condition of anonymity, the official read out the 14-point memorandum that is due to be formally signed in Switzerland.

They said the upcoming meeting there will be "critical" for ensuring that the memorandum of understanding can evolve into a comprehensive agreement.

"I think the meeting in Switzerland will be quite critical in order to really see how we get to the next phase," a senior US official said.

The document, as read out by the official, was similar to the 14-point memorandum that various media outlets, including Reuters, had already reported on earlier in the day:

1. Iran and US, together with their allies in the current war, declare upon the signing of this Memorandum of Understanding an immediate and permanent end to the war on all fronts, including Lebanon, and undertake that from now on they will not launch any hostile action against each other, and will refrain from the threat or use of force against each other. 

2. Iran and the US undertake to respect each other’s sovereignty and territorial integrity, and to refrain from interfering in each other’s internal affairs.

3. Iran and the US undertake to negotiate and reach a final agreement within a maximum period of 60 days, extendable by mutual consent.

4. Immediately upon the signing of this Memorandum of Understanding, the US lift the naval blockade and prevent any interference or obstruction against the Islamic Republic of Iran, and restore traffic within a maximum of 30 days to its full capacity; the traffic of ships shall be proportional to the pre-war volume of traffic on the part of Iran. The US also undertakes to withdraw its forces from the surrounding areas within 30 days after the final agreement.

5. Upon signing this Memorandum of Understanding, Iran will immediately take steps to ensure that the movement of merchant ships from Arabian Gulf to the Sea of Oman and vice versa is resumed within 30 days to the pre-war volume, taking into account the need for the removal of technical obstacles and the neutralization of mines by Iran.

6. The US undertakes, together with its regional partners, to create a comprehensive plan agreed upon by both parties for the rehabilitation and economic development of the Iran, while ensuring financing of at least $300 billion. The implementation mechanism of this plan, as part of the final agreement, will be formulated within 60 days.

7. The US commits to ending, on a schedule to be agreed upon as part of the final agreement, all types of sanctions currently facing the Islamic Republic of Iran, including resolutions of the United Nations Security Council and the Board of Governors of the International Atomic Energy Agency (IAEA), and all unilateral US sanctions, both primary and secondary.

8. Iran reiterates that it will never produce nuclear weapons. Iran and the US have agreed that the fate of enriched material and the fate of all other mutually agreed nuclear-related issues, including Iran’s nuclear needs, will be adequately addressed in a final agreement; the final agreement will confirm the provisions of this Article.

9. Iran and US agree that, pending a final agreement, they will maintain the status quo: Iran will maintain the status quo on its nuclear programme, and the United States will not impose new sanctions on Iran or strengthen its forces in the region.

10. The US undertakes that immediately after the signing of this Memorandum of Understanding, and until the date of the lifting of sanctions, the United States Treasury Department will issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives, and all related services, including banking, insurance, transportation, and the like.

11. The US undertakes that, in light of the progress of negotiations towards a final agreement, frozen or restricted funds and assets of the Islamic Republic of Iran will be released and made fully available. These funds, whether held in the master account or transferred, will be used for any final beneficiary payment determined by the Central Bank of Iran and will be fully available for use. The US undertakes to issue all necessary permits and licenses on this basis.

12. Iran and US agree that an implementation mechanism will be established to oversee the successful implementation of and future commitment to the Final Agreement.

13. Following the signing of this Memorandum of Understanding, and upon receipt of assurances regarding the commencement of implementation of Articles 4, 5, 10, and 11 of this Memorandum of Understanding, and the continued implementation of these steps, Iran and the US will enter into negotiations for a Final Agreement solely with respect to the remaining Articles.

14. The final agreement will be approved through a binding resolution of the UN Security Council.