Iran and the United States have agreed an immediate and permanent end to the war on all fronts, including Lebanon, the lifting of the US naval blockade and a reconstruction plan worth at least $300bn, under a digitally signed memorandum of understanding that took effect on June 18.

The 14-point Islamabad Memorandum of Understanding, brokered by Pakistan and signed by Iranian President Masoud Pezeshkian and US President Donald Trump, leaves the most contentious issues, including the fate of Iran's nuclear programme, to a 60-day negotiating window.

It marks the most significant thaw between the two foes since 1979 and was finalised on June 15 after months of indirect talks mediated by Islamabad.

Under the agreement, the US will begin removing the naval blockade immediately and end it fully within 30 days, while Iran will arrange safe passage for commercial vessels through the Strait of Hormuz at no charge for 60 days, restoring traffic to prewar levels.

Tehran will hold talks with Oman to define the future administration and maritime services of the strait, in line with international law and the sovereign rights of its coastal states.

The deal commits Washington to develop a reconstruction and economic development plan worth at least $300bn with regional partners, to terminate all sanctions including United Nations Security Council resolutions on an agreed schedule, and to issue immediate waivers for exports of Iranian crude oil, petroleum products and related banking, insurance and transport services. The US will also make Iran's frozen assets fully available for use by the Central Bank of Iran.

On the nuclear file, Iran reaffirmed it would not develop nuclear weapons and agreed to resolve the disposition of its enriched material through down-blending on site under International Atomic Energy Agency supervision.

Pending a final deal, both sides will maintain the status quo, with Iran holding its nuclear programme as it is and the US imposing no new sanctions or additional regional forces.

The MoU sets a maximum 60-day period to reach a final deal, extendable by mutual consent, and provides for an executive mechanism to monitor implementation. The final agreement is to be endorsed by a binding UN Security Council resolution.

Iran's foreign ministry spokesman Esmaeil Baghaei said the text was signed digitally in Persian and English by the highest authorities of both countries, a deliberate choice to raise the political cost of any violation. He said the lifting of oil sanctions had begun and that Iranian ships had since entered and exited ports without problems.

"If the Americans falter in implementing their commitments, we will falter too," said Baghaei.

Switzerland will host preliminary talks on June 20, with representatives from Pakistan, Qatar and other countries attending, the Swiss foreign ministry said.

Parliament speaker and chief negotiator Mohammad Baqer Ghalibaf, who signed for Iran alongside US Vice President JD Vance, said the country had secured the blockade's lifting, an extension of the ceasefire across Lebanon and the $300bn commitment, framing the talks as an arm of a wider confrontation rather than a concession.