Under a still-secret agreement between the United States and Iran, Tehran could receive significant financial benefits, including the immediate ability to sell oil and fuel, according to reports. This interim deal, expected to be formally signed in Switzerland on Friday, would launch a 60-day negotiating period for a broader nuclear agreement and aims to end the war, reopen the Strait of Hormuz, and impose new limits on Iran’s nuclear program. US officials claim any financial benefits are contingent on Iranian compliance with terms such as not developing nuclear weapons and ensuring free navigation in the Strait of Hormuz.
The agreement includes temporary sanctions waivers allowing Iran to resume oil exports immediately, along with banking, transportation, and insurance services necessary for these sales. This move could provide a major revenue boost for Tehran, which earned an estimated $45 billion from oil sales last year but faced limited buyers and sanctions-evading shipping. With the waivers, Iran is expected to find more customers and sell its oil at higher market prices. However, sustained relief would depend on Iran meeting broader demands, such as keeping the Strait of Hormuz open.
A key part of the controversy is a proposed reconstruction and economic development fund that could unlock as much as $300 billion in private-sector investment for Iran if a final agreement is reached. While the White House states this is a "pay for performance" model, critics, including some US officials and lawmakers, argue this arrangement bears similarities to the 2015 Iran nuclear deal, which former President Trump had condemned. US officials deny that Iran will gain immediate access to frozen overseas assets upon signing, despite claims from Iranian state media, stating any such access would be reciprocal "gestures" tied to compliance.
The agreement offers a mix of immediate and eventual incentives for Iran, while requiring its commitment to never seek a nuclear weapon, neutralize its enriched material, and ensure free navigation through the Strait of Hormuz. The US Treasury Department is expected to issue waivers for Iranian crude oil, petrochemical products, and their derivatives immediately after the memorandum of understanding is signed. The US will also lift its naval blockade, aiming to restore traffic in the Strait of Hormuz within 30 days. The deal does not require the US to contribute money to the $300 billion fund, but allows other nations to do so.
