The United States and Iran are set to sign a preliminary agreement in Switzerland on June 19 that would immediately halt their war and begin two months of negotiations over Tehran's nuclear programme, sanctions, and a sweeping economic recovery package.

A 14-point draft memorandum reviewed by Bloomberg News sets out the proposed terms of the arrangement. It calls for an immediate and permanent end to hostilities, the reopening of key shipping routes, relief for Iranian oil exports, and at least $300 billion in financing for Iran's rehabilitation and economic development.

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Iran, in return, would reaffirm that it will never build a nuclear weapon and would keep its nuclear programme unchanged while negotiations continue. The future of its enriched uranium and other disputed nuclear activities would be decided under a final agreement.

The memorandum has not yet been signed, and its provisions could change before the expected June 19 meeting.

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Immediate ceasefire across all fronts

According to the draft cited by Bloomberg, Iran, the United States, and their allies in the current conflict would declare “an immediate and permanent end to the war on all fronts, including Lebanon” as soon as the memorandum is signed.

Both countries would agree not to carry out hostile actions or threaten or use force against one another. They would also pledge to respect each other’s sovereignty and territorial integrity and refrain from interfering in domestic affairs.

The two sides would then have up to 60 days to negotiate a final agreement. That deadline could be extended with mutual consent.

Shipping and naval restrictions to ease

The draft requires the United States to lift its naval blockade immediately after the signing and prevent further interference with Iranian shipping.

Maritime traffic involving Iran would have to return to pre-war levels within 30 days. US forces stationed around Iran would be withdrawn within 30 days of the final agreement.

Iran would separately commit to restoring commercial shipping between the Persian Gulf and the Sea of Oman within the same 30-day period. The timeline would account for the removal of technical barriers and the clearance of mines by Iran.

At least $300 billion for Iran

One of the central economic provisions is a proposed development package worth at least $300 billion.

Under the draft, the United States and its regional partners would prepare a comprehensive plan to finance Iran's rehabilitation and economic development. The financing and implementation mechanism would be worked out during the 60-day negotiating period and included in the final agreement.

The United States would also commit to ending all sanctions imposed on Iran under a timetable to be negotiated by the two sides.

The proposed relief would cover unilateral US primary and secondary sanctions, as well as measures linked to the United Nations Security Council and the International Atomic Energy Agency’s Board of Governors.

Oil exports could resume immediately

The draft would provide Iran with economic relief even before the complete removal of sanctions.

Bloomberg reported that the US Treasury Department would issue waivers immediately after the memorandum is signed, allowing Iran to export crude oil, petrochemical products, and their derivatives.

The waivers would also cover services required for those exports, including banking, insurance, and transportation.

As negotiations progress, frozen or restricted Iranian funds would also be released. The assets would become available for payments selected by Iran’s central bank, with the United States issuing the required licences and approvals.

Nuclear questions left for final agreement

Iran would repeat its position that "it will never produce nuclear weapons," but the memorandum would not resolve all nuclear disputes at the preliminary stage.

The fate of Iran’s enriched material, its future nuclear requirements and other mutually agreed issues would be negotiated as part of the final accord.

Until that agreement is reached, both sides will preserve the existing situation. Iran would make no changes to its nuclear programme, while Washington would refrain from imposing additional sanctions or increasing its military presence in the region.

Final negotiations tied to early implementation

The draft links the opening of detailed negotiations to the implementation of several immediate commitments.

Iran would first seek assurances that the naval blockade was being lifted, maritime traffic was being restored, oil waivers were being issued, and frozen funds were being released.

Once those measures begin and remain in effect, Washington and Tehran would start negotiations on the provisions still awaiting settlement.

The final accord would include a monitoring mechanism to oversee implementation and future compliance by both countries. It would also be approved through a binding resolution of the United Nations Security Council.