The US and Iran are finalizing an interim peace deal, referred to as a memorandum of understanding (MoU), with both sides claiming victory. While the full text hasn't been officially published, details emerging from various media outlets indicate that the agreement includes immediate sanctions waivers for Iran to sell oil, delaying other financial incentives. This MoU sets the stage for a 60-day negotiation period to address Iran's nuclear program and broader sanctions relief.
According to reported drafts, key provisions of the MoU include an immediate and permanent halt to the war on all fronts, including in Lebanon. The US will lift its naval blockade against Iran, and the Strait of Hormuz is expected to reopen within 30 days under Iranian arrangements. The draft also calls for the suspension of sanctions on Iranian oil sales, petrochemicals, and related services, granting Tehran full access to the financial proceeds from these sales. Furthermore, $24 billion in frozen Iranian assets are to be released during the 60-day negotiation period, with half of that amount made available before the final talks begin.
Another significant aspect of the agreement is a commitment from the US and its regional partners to create a comprehensive economic reconstruction and development plan for Iran, guaranteeing at least $300 billion in funding. The implementation mechanism for this plan is to be formulated within the 60-day negotiation period as part of the final agreement. The MoU also states that the final agreement would involve the full lifting of US primary and secondary sanctions, as well as the termination of relevant UN Security Council and International Atomic Energy Agency Board of Governors resolutions.
The final negotiations would focus on nuclear issues, specifically the fate of enriched material and enrichment activities, alongside sanctions relief and the reconstruction of Iran's economy. Iran would reiterate its commitment under the Nuclear Non-Proliferation Treaty not to produce nuclear weapons. The draft specifies that final negotiations would not commence until half of Iran's frozen assets are released, oil sanctions are suspended, and the naval blockade is lifted. The final agreement is intended to be endorsed through a binding UN Security Council resolution. The MoU was reportedly signed electronically and a formal signing ceremony is expected in Switzerland.
