The memorandum of understanding between the United States and Iran leaves untouched key military capabilities that President Donald Trump cited when launching the conflict Feb. 28, raising concerns among Gulf Arab allies and security analysts about Tehran's ability to project power across the Middle East.

The MOU signed Wednesday ends hostilities between the U.S. and Iran but imposes no restrictions on Tehran's ballistic missile arsenal, drone stockpiles, or its network of allied militias operating throughout the region, The Wall Street Journal reported Friday.

"The MOU doesn't address any of Iran's core power-projection capabilities," Hasan Alhasan, a senior fellow at the International Institute for Strategic Studies and former adviser to Bahrain's crown prince, told the Journal.

The conflict was driven in part by U.S. and Israeli opposition to Iran's missile program and support for proxy forces, in addition to concerns over Tehran's nuclear ambitions.

The agreement does include provisions addressing Lebanon, where Israel has been fighting the Iran-backed Hezbollah terrorist group. The opening clause commits the United States to protecting Lebanon's territorial integrity and sovereignty and calls for the permanent termination of military operations there.

On Thursday, Iran's Supreme Leader Mojtaba Khamenei said only after receiving assurances by Iranian President Masoud Pezeshkian "on his own behalf and on behalf of the other members regarding the safeguarding of the rights of the Iranian nation and the Resistance Front and his explicit acceptance of that responsibility, I granted my permission."

Trump defended the accord Wednesday, arguing that extending the conflict risked serious economic consequences. Speaking after signing the agreement in Versailles, France, Trump said market stability factored into his decision to pursue a settlement.

Trump also indicated he does not oppose Iran retaining some ballistic missile capabilities.

"I'm saying that if other countries have them, it's a little bit unfair for them not to have some," Trump told reporters.

Analysts told the Journal that Iran enters upcoming nuclear negotiations in a stronger position than many expected. The agreement reportedly includes sanctions relief tied to Tehran's long-standing pledge not to develop a nuclear weapon, potentially restoring billions of dollars in oil revenue.

Despite suffering battlefield losses and damage to weapons-production facilities during the war, Iran still possesses thousands of ballistic missiles, according to U.S. intelligence assessments cited by the Journal. Officials also warned Tehran could replenish drone capabilities through foreign suppliers, including Russia.

Critics argue the agreement freezes the conflict but leaves intact many of the military tools Iran has used to threaten Israel, Gulf Arab states, and international shipping lanes.