A memorandum of understanding between the United States and Iran will expire in the coming days with no signs that the war between the two countries will end soon. US President Donald Trump and Iranian President Masoud Pezeshkian signed the MoU on 17 June, which provided 60 days to determine a roadmap for ending the war.
Though the first point in the MoU calls for a cessation of hostilities across all fronts and involves allies, the agreement is scheduled to expire on 17 August. Trump has suggested continuing attacks on Iran until the country halts its nuclear programme, mentioning a number of approaches to pressure Tehran including tough strikes and economic restrictions.
One major obstacle is a clause on free commercial shipping lanes in the Strait of Hormuz. Tehran views this clause as US recognition of Iran's authority to manage the entire waterway and says they agreed to free shipping only for two months, whilst Washington rejects this interpretation and insists the text merely means Iran will ensure safe shipping lanes without restrictions or violence-backed levies.
The second obstacle concerns trade exemptions for Iran. The US has agreed to grant exemptions allowing Iran to export crude oil, petroleum products, and related services including international banking, insurance, and shipping support.
The third obstacle relates to Iran's limited assets that the US promised to unfreeze, with a mechanism still to be agreed during negotiations. Without direct diplomatic talks or real progress expected in the near term, the future of the MoU remains uncertain.
