The United States and Iran are getting ready to sign the peace agreement in Switzerland on Friday to end the war, which has rattled the global energy markets for over three months. While the details of the agreement haven’t been made public yet, a Bloomberg report has shared the list of key financial gains that the US will offer Tehran as part of its deal.
According to the final draft of the deal, Tehran is set to receive broad financial incentives as part of its agreement, including the right to sell oil immediately, tap a $300 billion development fund and get eventual access to its frozen assets.
While details of the memorandum of understanding (MoU) have been circulating for days, the latest version reviewed by Bloomberg News provides the clearest picture yet of the economic benefits Iran could receive in exchange for ending its disruption of traffic through the Strait of Hormuz and reaffirming its commitment not to pursue nuclear weapons.
Quick answers to key questions
What financial gains will Iran receive from the US-Iran peace deal?⌵
Iran is set to receive the right to sell oil immediately, access to a $300 billion development fund, and eventual access to its frozen assets as part of the US-Iran peace agreement.
Why is the reopening of the Strait of Hormuz significant in the US-Iran peace deal?⌵
The reopening of the Strait of Hormuz is significant because it facilitates the restoration of normal shipping traffic and is crucial for global energy markets, allowing for the movement of oil without disruption.
How will the US support Iran’s economic development under the peace agreement?⌵
The US will pledge to assist Iran’s economic development by establishing a plan that includes financing of at least $300 billion and waivers for exports of Iranian crude oil and petrochemical products.
What conditions are attached to the lifting of US sanctions on Iran?⌵
The lifting of US sanctions on Iran is contingent upon a final agreement being negotiated within two months, which includes Iran’s commitment not to pursue nuclear weapons.
Should other countries be concerned about the implications of the US-Iran peace deal?⌵
Yes, other countries should be concerned as the deal impacts global energy markets, affects regional alliances, and has the potential to alter security dynamics in the Middle East.
The MoU, which will be signed in Switzerland, will pave the way for 60 days of talks aimed at ending their war for good and putting strict new limits on Iran’s nuclear program. Citing a person familiar with the development, while neither side has officially released the text, the US has begun circulating it with allied nations at the Group of Seven (G7) summit in France.
Additionally, the technical details of the deal were reportedly still being worked out, indicating that precise language may still change before the signing.
US-Iran peace deal: Here’s what it includes
Under the deal, the US Treasury Department “will issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives” immediately after the memorandum is signed. The US will lift its naval blockade and the two countries will work to ensure that traffic in the Strait of Hormuz returns to its prewar level within 30 days.
According to the draft agreement, Washington, along with its regional allies, will create a plan to rehabilitate Tehran and allow for its economic development, with financing of at least $300 billion. However, there is no clarity on the release of the Islamic Republic’s frozen assets, and stated that Washington undertakes that those funds “will be released and made fully available” without setting a timeline.
Additionally, under the agreement, Washington would also commit to ending its sanctions against Tehran, but only as part of a final agreement to be negotiated over the next two months to end their war for good. The US would also withdraw its military forces “from the surrounding areas” within 30 days of a final agreement.
The agreement offers a mix of immediate and eventual incentives for Iran while committing it never to seek a nuclear weapon. The country has long insisted it doesn’t want the atomic bomb and had committed not to seek one as part of the Obama-era Joint Comprehensive Plan of Action.
This is a developing story. More details awaited.
