More than 100 days after military operations began, the United States and Iran have reached a deal to end the fighting, with both nations' leaders claiming victory. The agreement, known as a Memorandum of Understanding (MOU), aims to de-escalate tensions but signals the start of more complex negotiations to come.

For Iran, the deal offers a crucial narrative of survival and resilience. The primary objective for Tehran throughout the conflict was not outright military victory but to emerge with the Islamic Republic intact, its leadership functioning, and its negotiating leverage preserved. The MOU allows Iran to present the outcome as a success on these terms.

The agreement, signed separately by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, establishes a 60-day period for discussions concerning Iran's nuclear program. Crucially, it mandates an immediate cessation of hostilities across all fronts, including Lebanon, affirms mutual respect for sovereignty, and includes the reopening of the Strait of Hormuz, coupled with the lifting of the U.S. naval blockade on Iranian shipping.

Iran's immediate responsibilities under the MOU are defined and appear manageable. Tehran has committed to facilitating safe commercial passage through the Strait of Hormuz, a return to previous conditions, reaffirmed its commitment not to pursue nuclear weapons, and agreed to engage in talks regarding its uranium enrichment program and stockpiles of highly enriched uranium.

The U.S. commitments, however, are outlined as more extensive. Washington has agreed to commence the dismantling of its naval blockade, issue waivers to permit Iranian oil exports, unfreeze or make accessible restricted Iranian assets, and work towards sanctions relief. Furthermore, the U.S. will collaborate with regional partners on a reconstruction and economic development plan for Iran, estimated to be worth at least $300 billion.

This comprehensive package explains the relatively subdued reaction from Iranian critics so far. The MOU provides the leadership with sufficient grounds to portray the agreement as a win, demonstrating that the country has weathered the conflict without capitulating. President Pezeshkian's administration is likely to emphasize the economic benefits and the restoration of international trade routes.

However, significant challenges remain. The domestic political landscapes in both countries present hurdles. In Iran, hardliners may question the concessions made, particularly concerning the nuclear program and the extent of U.S. economic engagement. In the U.S., critics of the Trump administration might argue that the deal offers too many concessions to Iran, potentially emboldening its regional activities or failing to adequately address security concerns.

The coming days and weeks will be critical as both sides navigate domestic pressures and begin the intricate negotiations on Iran's nuclear activities. The success of the MOU will hinge on the ability of both governments to manage internal dissent and build consensus for the complex steps that lie ahead.