President Pezeshkian and his US counterpart Trump signed the MoU between Tehran and Washington digitally and remotely. (Image: Iran in India/X) While the newly announced US-Iran agreement has drawn attention for ending the 108-day war, easing sanctions, and reopening the Strait of Hormuz, one of its most consequential provisions concerns Iran's stockpile of highly enriched uranium. The fate of Iran's uranium stockpile has long been at the heart of international concerns over its nuclear programme. US officials say Tehran has agreed to "dilute" its existing reserves of enriched uranium as part of the deal, a move aimed at preventing the country from acquiring a nuclear weapon while paving the way for sanctions relief and broader regional de-escalation. Pakistani Prime Minister Shehbaz Sharif, who helped mediate the deal to end the war, said it is taking "immediate effect" after leaders from both countries signed it, but that there will still be a formal signing ceremony on Friday. The agreement would open the Strait of Hormuz toll-free for two months and affirm a commitment to Lebanon's territorial integrity in the face of Israel's invasion against the Hezbollah militant group, according to officials from both countries. But how will the nation's highly debated uranium stockpiles be handled? Also Read: Beyond the Buzzword: What 'Nuclear Dust' Really Means in Iran Crisis While the text of the agreement has not been formally released, the draft read by US officials includes language that Iran agrees not to develop or procure nuclear weapons and requires that Iran's highly enriched uranium be downgraded on site as a minimum. In return, the US will move to waive, but not eliminate, some wide-ranging sanctions against Iran. The agreement also secures free passage of the strait for only 60 days, and it does not preclude fees in future, according to the US officials and the Iranian draft. Before US and Israeli air strikes on Iranian nuclear facilities in June 2025, the International Atomic Energy Agency (IAEA) estimated that Iran possessed 440.9 kilograms of uranium enriched to 60 percent. While not weapons-grade, the material is significantly close to the 90 percent enrichment level generally associated with the production of nuclear weapons. The interim deal also opens the door to ending all sanctions Iran faces from the US and at the UN - including those over Tehran's weapons programs and human rights abuses - though it says the schedule for that will be worked out later. Still, that far surpasses the 2015 deal, which only lifted some sanctions in exchange for Iran drastically reducing its enrichment and stockpile of uranium. The accord would also provide Iran with at least USD 300 billion to rebuild - an extraordinary figure and another major benefit for Iran. The money also appears dependent on the progress of further negotiations. Ananya is a journalist with a strong grounding in breaking news and a deep-rooted passion for geopolitics. She has 6 years of experience in TV and Dig... View More