U.S. President Donald Trump, Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Qalibaf have signed a memorandum of understanding (MoU) aimed at ending the conflict between the two countries, a senior U.S. official said on Monday, as per Reuters.The agreement provides for a 60-day halt in fighting, the reopening of the Strait of Hormuz and the lifting of the U.S. blockade on Iran, according to the official. Vance told ABC News that the memorandum had already been signed electronically, while a formal signing ceremony is scheduled to take place in Switzerland on Friday.The breakthrough marks the most significant diplomatic progress yet towards ending months of conflict that have destabilised the region and rattled global energy markets.The senior U.S. official said technical discussions on implementing the agreement would begin later this week, with details of the understanding expected to be released within the next 24 to 48 hours.The official said any relief involving frozen Iranian funds and sanctions would be tied to Tehran's compliance with the agreement, while broader negotiations are expected to continue beyond the initial 60-day period.According to the official, the United States plans to maintain its current military force posture during the next phase of negotiations. Any reduction in military forces would be considered only after the parties reach a final agreement.Vance told Fox News that the memorandum includes an assurance that Iran will never produce, procure or buy a nuclear weapon, although negotiations on Tehran's nuclear programme are expected to continue separately.The Strait of Hormuz, through which roughly a fifth of the world's oil supplies typically pass, is one of the world's most important energy chokepoints. Its reopening is expected to ease concerns over global energy supplies and shipping disruptions, which have weighed on global markets during the conflict.