Key points of US-IRAN Deal

Picture Credit: International Commission of Jurists

A reported 14-point memorandum of understanding (MoU) between the United States and Iran has raised hopes of a diplomatic breakthrough that could ease one of the world's most dangerous geopolitical crises. According to documents published by Bloomberg, the draft agreement proposes an immediate and permanent ceasefire, the reopening of the Strait of Hormuz, a gradual lifting of sanctions on Iran, and renewed negotiations over Tehran's nuclear programme.

The proposed deal would see both countries agree to end all hostile actions and respect each other's sovereignty while working towards a comprehensive agreement within 60 days. One of the most significant provisions is the restoration of maritime traffic through the Strait of Hormuz, the narrow waterway through which roughly 20 per cent of the world's oil supply normally passes. Iran would be responsible for restoring commercial shipping routes and removing mines or other obstacles within 30 days, while the United States would lift its naval blockade and gradually withdraw military forces from surrounding areas following a final agreement.

The economic implications of the deal could be enormous. The draft proposes a $300 billion international rehabilitation and development programme for Iran, alongside the phased removal of US, UN and international sanctions. Washington would also issue immediate waivers allowing exports of Iranian crude oil and petrochemicals, while billions of dollars in frozen Iranian assets would be released. Such measures could significantly boost global oil supply at a time when energy markets remain under pressure from months of disruption in the Gulf.

Nuclear issues remain at the heart of the negotiations. Iran would once again pledge never to develop nuclear weapons, while both countries would negotiate the future of Iran's enriched uranium stockpiles and civilian nuclear programme. Until a final agreement is reached, both sides would maintain the current status quo, with Iran freezing further nuclear escalation and the United States refraining from imposing additional sanctions or expanding its regional military presence.

While the reported memorandum is yet to be officially confirmed by either Washington or Tehran, financial markets and policymakers are watching developments closely. A successful agreement could ease tensions across the Middle East, stabilise oil prices, and restore one of the world's most important shipping routes. However, the road ahead remains uncertain, with any final deal requiring difficult negotiations and, according to the draft, eventual approval through a binding United Nations Security Council resolution.