Deal Overview
The final draft of the memorandum of understanding (MOU) between the United States and Iran covers a wide range of issues. It calls for the immediate reopening of the Strait of Hormuz to commercial vessels and the lifting of the U.S. naval blockade on Iranian ports.
Sanctions and Asset Release
The United States would not impose any new sanctions on Iran until a final agreement is reached and would waive oil‑related sanctions, allowing Tehran to sell oil during a specified period. Washington would facilitate the release of $25 billion in Iranian assets that are currently frozen, using direct cash transfers, cooperation among regional countries, and the establishment of financial credit lines.
Nuclear Restrictions
According to the draft, Iran agrees it will neither produce nor acquire nuclear weapons, will maintain the nuclear status quo, will not enrich uranium, and will not expand nuclear facilities. The United States accepts that Iran will dilute its stockpile of highly enriched uranium within the country, with the dilution process to be finalized within 60 days of the agreement.
Strait of Hormuz Fees and Reconstruction Fund
Strategic adviser Mehdi Mohammadi said the proposed deal preserves Iran’s authority over the Strait of Hormuz and that fees collected for safety, navigation, and security services will continue to be collected. He stated that the right to collect these fees belongs exclusively to Iran and Oman. The draft also mentions a development and reconstruction fund aimed at rebuilding war‑damaged infrastructure, using the term “reconstruction” rather than “compensation.”
Political Statements and Timeline
U.S. President Donald Trump indicated that an agreement could be signed as early as the following Sunday, describing the Strait of Hormuz as “open to all” after signing and saying the United States would eventually secure and destroy Iran’s nuclear material. Iran has not ruled out a near‑term signing but has pushed back on the timeline. Foreign Minister Abbas Araghchi said the nuclear issue would be addressed in a second phase of talks.
Regional Reactions
The potential deal has raised concerns in Lebanon, where Israeli strikes killed at least five people and Hezbollah reported multiple drone and rocket attacks on Israeli positions. Israel, not a party to the negotiations, said it would maintain freedom of action against perceived threats. In Gaza, Israeli strikes killed two people in Khan Younis.
Contextual Background
The agreement comes after months of fighting that disrupted shipping through the Strait of Hormuz and pushed oil prices higher. Trump described the proposal as a diplomatic breakthrough, while Iranian officials presented it as the first step toward broader negotiations.