The United States and Iran have signed a 14-point peace deal that stops the war on all fronts and promises at least $300 billion ($425 billion) for Iran's reconstruction.

The Memorandum of Understanding, read out by senior US officials on Wednesday, declares an immediate and permanent end to military operations — including in Lebanon — and bans either side from starting another war or using force against each other. Both sides also promised to respect each other's sovereignty and not interfere in each other's internal affairs.

Under the deal, the US will start removing its naval blockade of Iran immediately and finish within 30 days. During that period, Iran will restore ship traffic to pre-war levels. The US also agreed to pull its forces away from Iran within 30 days after a final deal is signed.

In exchange, Iran will use its "best efforts" to ensure safe passage for commercial vessels through the Persian Gulf to the Sea of Oman — free of charge for 60 days. Traffic should start within 30 days, after Iran removes technical and military obstacles and clears mines. Iran will also talk to Oman and other Gulf states about who runs the Strait of Hormuz in future, following international law.

The really big number is the reconstruction cash. The US promises to work with regional partners on a plan worth at least $300 billion ($425 billion) for Iran's economic development. That plan must be finalised within 60 days, and the US will grant all the licences, waivers and permissions needed for the money to flow.

Sanctions are also on the chopping block. The US agreed to end all types of sanctions against Iran — including UN Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral US sanctions, both primary and secondary — on an agreed schedule as part of the final deal. Both sides called this "critical" and said they'd start negotiating it immediately.

On the nuclear front, Iran reaffirmed it won't develop or buy nuclear weapons. The two sides agreed to figure out what to do with Iran's stockpiled enriched material — with the minimum being back-blending on site under IAEA supervision. They'll also talk about enrichment and other nuclear needs, as long as they can agree on a "satisfactory framework" in the final deal.

Until the final deal is done — within 60 days, extendable if both agree — both sides will keep things as they are. Iran won't change its nuclear program, and the US won't slap on new sanctions.

The deal ends a conflict that had threatened to blow up the entire Middle East. It also gives Iran a massive financial lifeline and a path back into the global economy — but both sides must stick the landing in the next two months.