After more than four months at war, the US and Iran will finally sign an interim memorandum of understanding on Friday. The signing, which will take place in Switzerland, will pave the way for 60 days of talks aimed at ending the conflict and imposing strict limits on Tehran’s nuclear program.According to the draft agreement, Iran would be allowed to immediately resume oil exports and gain access to an economic development program worth at least $300 billion as part of broader efforts to reach a lasting peace deal addressing its nuclear activities.The draft document, which has not yet been officially released by either side, is already being circulated by the US among allies attending the G7 summit in France. Another person familiar with the discussions told Reuters that technical details were still being finalized, indicating some language could change before the signing ceremony.
Inside the agreement:
Oil and uranium concernsThe agreement outlines significant economic relief for Iran in exchange for ending its sanctions on the Strait of Hormuz and affirming that it will never seek nuclear weapons. Once the memorandum is signed, the US Treasury Department will issue waivers allowing the export of Iranian crude oil and petrochemical products, Bloomberg reports.The US will also end its naval blockade of Iranian ports, while both countries will work to restore maritime traffic through the Strait of Hormuz to pre-war levels within 30 days.Oil markets reacted sharply on expectations surrounding the deal. Brent crude fell below $78 a barrel to its lowest level in more than three months. Prices have fallen 15% in the past four trading sessions, their longest decline this year, amid hopes that the reopening of the Strait of Hormuz could increase global supply.Additionally, the draft agreement does not directly address Iran’s existing reserves of enriched uranium. Instead, it said the future of Iran’s enriched uranium, along with other unresolved nuclear issues, “will be adequately addressed in the final agreement”.Financing framework and frozen fundsUnder the draft agreement, the US and its regional partners will establish a framework to support Iran’s rehabilitation and economic development with at least $300 billion in financing. The document also says the US commits that Iran’s frozen funds “will be released and made fully available”, although no timetable is specified.A US official declined to discuss details of the draft, but said Iran would benefit from the deal only if it met its obligations. These include never acquiring nuclear weapons, neutralizing its enriched nuclear material, and ensuring freedom of navigation through the strait.Meanwhile, Iran is demanding guarantees of access to its frozen assets. The semi-official Tasnim news agency quoted Central Bank Governor Abdolnaser Hemmati as saying that Tehran would demand “full assurances regarding effective access” to those funds once the interim agreement is formally signed.According to Hemmati, the agreement “clearly and actionably states” US commitments to free up Iranian assets.
Controversy over figures of more than 300 billion dollarsUS President Donald Trump had earlier denied that Washington would pay Iran $300 billion. Instead, the draft agreement says the US and its partners will ensure financing of that amount.One of the major challenges in the talks remains the conflict involving Israel and the Iran-backed terrorist group Hezbollah. The draft states that the war will be ended “on all fronts, including Lebanon”, a provision that would require the approval of Israeli Prime Minister Benjamin Netanyahu, who has so far refused to end Israel’s campaign against Hezbollah on the country’s northern border.Mark Regev, Israel’s former ambassador to Britain, told Bloomberg, “It is important that Israel remains in southern Lebanon for the time being and cleans up Hezbollah’s infrastructure.”Iran’s parliament speaker and chief negotiator Mohammad Bagher Ghalibaf said Israel “should withdraw from the occupied territories” in Lebanon, according to the semi-official Mehr news agency.The draft also provides for the eventual removal of US sanctions on Iran, although this will only happen as part of a final agreement negotiated during the next two months. Additionally, the US will withdraw military forces “from surrounding areas” within 30 days of the final agreement.uncertainty over timelineThere remains uncertainty as to when the text of the agreement will be made public. Trump has said it will be released sometime after Friday’s signing ceremony, while a senior US official said earlier this week that publication could come within a few days.According to the Swiss Foreign Ministry, the ceremony is expected to take place in the Bürgenstock mountain resort overlooking Lake Lucerne. US Vice President JD Vance is expected to lead the US delegation, while Iran is likely to be represented by Ghalibaf.Meanwhile, speaking at the G7 summit, Trump described the agreement as a “done deal” that will prevent Iran from developing nuclear weapons. He also said the US would not pay reparations for the war or invest money in Iran, adding that Tehran’s leaders “have to prove themselves, I think, before any of us go there.”