After President Donald Trump signed a memorandum of understanding (MOU) with Iran, there was an urge to check it to the deal Trump tore up throughout his first time period: President Obama’s 2015 Iran nuclear deal, often known as the Joint Complete Plan of Motion (JCPOA).
Right here goes:
One is a nuclear deal, the opposite isn’t
The very first thing to be aware is the JCPOA was a finalized settlement to restrict Iran’s nuclear program in trade for sanctions reduction, organized between Iran, the U.S., China, Russia, France, the UK, Germany, and the European Union.
President Donald Trump, flanked by Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick and Commerce Consultant Jamieson Greer, speaks throughout a press convention, throughout the G7 Summit in Evian-les-Bains, France, June 17, 2026.
Evelyn Hockstein/Reuters
Trump doesn’t but have a closing nuclear settlement with Iran. He struck the MOU to finish the present warfare, commit to future nuclear negotiations, and for Iran to reopen the Strait of Hormuz in trade for some instant sanctions reduction and the lifting of the U.S. naval blockade.
It’s extra of a cease-fire settlement than a nuclear settlement. The longer term nuclear program is left to be negotiated in a 60-day interval. Iran does commit to not purchase a nuclear weapon (simply because it did within the JCPOA), however no enforcement mechanism is but determined.
Diplomacy vs. warfare
Maybe the largest distinction is how every administration received to their agreements. The Obama administration engaged in a tedious, 20-month lengthy diplomatic negotiation.
The Trump administration tried for months on a diplomatic path however finally determined the menace from Iran was too acute.
In July 2025, Trump bombed Iran’s nuclear services in dramatic vogue, setting its program again by as many as two years, in accordance with consultants.
Months later, in coordination with Israel, the U.S. launched Operation Epic Fury, aimed toward additional destroying nuclear websites and degrading Iran’s navy functionality.
Iran responded by choking off the important oil passage within the Strait of Hormuz and launching counterattacks aimed toward U.S. bases and Gulf nations. Within the meantime, Israel was engaged in a warfare with Iranian proxy forces in Lebanon.
13 American service members have been killed in Epic Fury and the warfare is estimated to have price the American taxpayer effectively over $25 billion so far.
Sanctions reduction
Each offers offered important monetary reduction for Iran. However the largest distinction between the offers is what the world received in trade for that reduction.
The JCPOA unfroze tens of billions of Iranian monies held abroad and lifted crippling financial sanctions imposed by the U.S., the European Union and the United Nations. It freed Iran’s central financial institution to function within the international financial system and lifted restrictions on Iranian oil exports. And, sure, it included money transfers of beforehand seized property amounting to $1.7 billion. All mixed, it was an financial windfall for Iran.
In trade Iran agreed to scale back its nuclear centrifuges by two-thirds, dedicated to not construct new enrichment services for 15 years, considerably diminished its stockpile of enriched uranium, disabled a significant heavy-water reactor and agreed to IAEA inspections. Critics mentioned on the time the inspections weren’t intrusive sufficient, and that the settlement was time-limited, fairly than a everlasting resolution.
Vessels within the Strait of Hormuz, Iran, Could 22, 2026.
Majid Asgaripour/West Asia Information Company by way of Reuters
The Trump MOU, alternatively, additionally lifted oil restrictions, promised to assist create a $300 billion reconstruction fund in Iran with regional companions, and dangled the promise of sweeping sanctions reduction if the 2 sides might attain a broader nuclear deal. However many of the sanctions reduction is contingent on future negotiations that have not but materialized.
In trade for these items, together with the lifting of the naval blockade, the U.S. received Iran to conform to open the Strait of Hormuz. However that’s merely a return to pre-war establishment. Actually, the established order would possibly by no means be achieved in that important financial waterway, by way of which 20% of the world’s oil passes.
Level 5 of the 14-point MOU states the strait can be toll-free for 60 days, however after that Iran will work with neighboring Oman to “outline future administration and maritime providers” within the strait. Which means tolls aren’t dominated out down the highway.
Promoting the deal
When Obama introduced the JCPOA 11 years in the past, he known as it the “strongest non-proliferation settlement ever negotiated.” He acknowledged issues of critics and famous that Iran would get billions in sanctions. He additionally acknowledged that some most popular warfare or surgical strikes over his deal. He argued his deal wasn’t excellent, however was the best choice.
Talking after the G7 summit in France on Wednesday, Trump additionally praised his personal deal, saying it achieved “every part we got down to accomplish and extra.”
However he additionally admitted he wanted to make the deal to keep away from “financial disaster.” After claiming for months that Iran had “no playing cards” to play, he conceded that the financial ache ensuing from the oil disaster was too dangerous.
“I did not need to see financial disaster,” Trump mentioned. “If you happen to stored this going, that might have occurred. However all I do know is, each time we talked about the opportunity of peace, the inventory market shot up like a rocket ship.”
He went on to say he feared sending the nation right into a “despair” and that he might in the future be in comparison with Herbert Hoover, the thirty first president who is commonly blamed for the Nice Melancholy.
