The United States and Iran are preparing for the formal signing of an interim peace deal, referred to as a memorandum of understanding, which has been digitally signed by both sides. This agreement is expected to be formally signed on Friday in Switzerland. While the full text has not been released, a near-final draft indicates that Iran will receive immediate sanctions waivers allowing it to sell oil, with additional financial incentives to follow.
Key provisions of the deal could include the establishment of a $300 billion investment fund for Iran. This fund would not be composed of government money but rather private investments from companies eager to invest in the country. US Vice President JD Vance stated that these incentives are tied to Iran's performance in adhering to the deal's obligations. This fund is seen as a way to recapitalize Iran's economy and could be a lifeline for a country that has suffered an estimated $29 billion in war damages and is grappling with the highest inflation rate since 1942.
Beyond the investment fund, the memorandum extends an existing ceasefire for another 60 days, during which further negotiations on Iran's nuclear program, including the disposal of enriched uranium, will take place. Iran has reportedly agreed to surrender its enriched uranium stockpile, undergo regular inspections, and refrain from producing or acquiring nuclear weapons. Additionally, reports indicate that $24 billion in frozen Iranian assets are expected to be released as part of this initial agreement. Iranian officials, including Foreign Minister Abbas Araghchi, have emphasized that while the deal offers economic benefits, Tehran will not entirely rely on them.
