Iran's memorandum of understanding with the United States commits to ending the war on all fronts including Lebanon, the release of Iran's blocked funds and the lifting of a blockade, Deputy Foreign Minister Majid Takht-Ravanchi said, Jaam-e Jam tabloid reported on June 16.

As part of the deal between the two, Lebanon was expected to be included in the peace deal, but has been more of a lose end due to Israel not being directly included in any final agreement between Tehran and Washington. His remarks set out Tehran's reading of a deal due to be signed in Switzerland on June 19 that ends more than three months of conflict with Washington, with the Lebanon clause directly relevant to continued clashes between Israeli forces and Hezbollah along the Israel-Lebanon border.

Takht-Ravanchi told reporters he had briefed ambassadors on the memorandum's provisions, with the meeting stressing that the war had ended and should not continue on any front.

Foreign Minister Abbas Araghchi had stressed that war and occupation in Lebanon must not continue, and that this was addressed in the text of the memorandum, the deputy minister said. He added that the document also provided for compensation for damages and the drafting of a reconstruction plan.

Funds blocked

On Iran's frozen assets, Takht-Ravanchi said Araghchi had stressed that funds blocked illegally must be released.

The question of the Strait of Hormuz and the lifting of the blockade was another element of the document, he said, adding that lifting the blockade had been a serious Iranian demand from the outset and that some restrictions had been removed before signing.

Switzerland will host the signing, though the exact location has not been set, and the method of signing, including the possibility of an electronic ceremony, has not been finalised, he said. US Vice President JD Vance will attend on the American side and Mohammad Bagher Ghalibaf on the Iranian side.

Takht-Ravanchi said a new round of negotiations would begin after the signing. One clause commits the United States to halting the war on all fronts, with a specific mechanism to prevent any breach of commitments.

Talks on the nuclear issue will begin after the memorandum is signed, covering matters including enrichment, stockpiles and Iran's nuclear needs, he said.

Araghchi comments on moving forward

Following the deputy's speech, Foreign Minister Abbas Araghchi said a new round of negotiations between Iran and the United States towards a final agreement will begin on the day the memorandum of understanding is signed, Tasnim reported on June 16.

Araghchi's account, delivered to foreign envoys in Tehran, sets out a two-stage process that defers the most contentious issues, the nuclear file and sanctions relief, to a 60-day window of further talks after the initial deal takes effect at the end of the week.

The minister said the negotiations had been split into two phases because of difficulties in reaching a single agreement during the conflict. The first phase covered ending the war, the Strait of Hormuz, the naval blockade and reconstruction, and produced the memorandum.

Talks would then continue for 60 days towards a final agreement covering nuclear matters and the lifting of sanctions.

He described the immediate and permanent end of the war on all fronts, including Lebanon, as the most important element of the document.

Because the war in Lebanon and the Israeli offensive in southern Lebanon had become linked to the war with Iran, the two fronts had become interdependent, he said, and Tehran had treated an end to the war in Lebanon as a requirement for ending the war with Iran from the outset.

"From our point of view, the two sides of this memorandum are, on one side, America and Israel, and on the other side, Iran and Hezbollah," Araghchi said. He said ending the war in Lebanon was an inseparable part of ending the war in full, which included an end to occupation, and that the war would not be complete without an Israeli withdrawal from territory seized during the fighting.

Any Israeli military attack on Lebanon from now on, or continued occupation of Lebanese territory, would be considered a violation of the memorandum, Araghchi said.

He thanked Qatar and Pakistan for their efforts.

$300bn investment fund for Iran 

As part of the deal, a $300 bn international investment fund that Iran could access is under discussion as part of the country's emerging deal with the United States is also on the table, the Financial Times reported on June 16.

The fund would not be financed by government budgets but would be created for companies seeking to invest in Iran, unnamed sources told the Financial Times. Many companies in Europe and Asia, including South Korea and Japan, as well as in the United States, have expressed interest in participating.

Washington has discussed the possibility of lifting sanctions and creating a fund linked to Iran's "achievements" in implementing the memorandum, the report said, citing a senior US official.

The creation of the fund depends on the final agreement envisaged in the memorandum and may follow a 60-day extension of the ceasefire, the reopening of the Strait of Hormuz and further negotiations on the nuclear deal.

US Vice President JD Vance said Iran could gain access to the $300bn fund if it met its commitments under the agreement with Washington. US President Donald Trump claimed early on June 16 that reports that the United States would pay Iran $300mn were fabricated, but were part of a deal if Iran kept its side of the bargain.