Key Highlights

  • Iran would immediately reopen the Strait of Hormuz to all commercial vessels once the memorandum is signed.
  • The US has agreed to release $25 billion of Iran's frozen assets, including via direct cash transfers.
  • All US and UN sanctions on Iran would be lifted according to an agreed timetable once a final agreement is reached.
  • Negotiations on Iran's enriched uranium stockpile are set to conclude within 60 days of the memorandum being signed.

According to a senior Iranian official, a final draft of the memorandum of understanding between Iran and the United States addresses a wide range of issues, spanning the reopening of the Strait of Hormuz, sanctions relief, and the future trajectory of Iran's nuclear program. The official outlined the contents of the draft in remarks describing the agreement's main provisions.

On the Strait of Hormuz, the draft reportedly calls for Iran to immediately reopen the waterway to all commercial vessels upon signing, while the United States simultaneously lifts its naval blockade on Iranian ports. The removal of the US blockade would take effect immediately after the memorandum is signed, with work beginning right away to fully restore normal transit through the strait. A separate timetable would see remaining US sanctions tied to the strait completed within 30 days.

On financial matters, the draft includes a commitment from Washington not to impose any new sanctions on Iran until a final agreement between the two countries is reached. Once that final agreement is in place, all US and United Nations sanctions on Iran would be lifted according to a mutually agreed schedule. As part of the financial provisions, the United States has agreed to release $25 billion in frozen Iranian assets, with the funds to be made available including through direct cash transfers.

The nuclear component of the draft addresses some of the most sensitive elements of the negotiations. Under the terms described, Tehran has agreed that, pending a final agreement, it will neither produce nor acquire nuclear weapons. Iran's broader nuclear program, including the handling of its stockpile of highly enriched uranium and the mechanisms for managing ongoing enrichment activities, would be negotiated within 60 days of the memorandum being signed and addressed fully in a subsequent comprehensive agreement.

The draft also reportedly allows Iran to dilute its stockpile of highly enriched uranium on its own soil under any future comprehensive agreement, rather than requiring the material to be removed from the country, a point that has been a key area of disagreement during the broader negotiations.

In parallel with the nuclear and sanctions provisions, the draft outlines a reconstruction component, under which Washington, working with regional allies, would prepare a reconstruction and development plan for Iran. That plan would need to be negotiated and agreed with Tehran within the same 60-day window.

Taken together, the provisions described by the Iranian official suggest a phased approach, with immediate steps on the Strait of Hormuz and an initial halt to new sanctions, followed by a 60-day period during which the more complex issues around Iran's nuclear program, sanctions relief, and reconstruction would be finalized.