After three months of war, the US and Iran are very close to signing an agreement that could enable the reopening of the Strait of Hormuz, extend the ceasefire and set the table for more talks on limiting Tehran's nuclear programme, according to reports.
Neither Iran nor US President Donald Trump has signed off on the deal, but the latter is reviewing the latest version of the agreement. US Vice President JD Vance also hinted that a deal could be in the offing, and both countries were “going back and forth” on an agreement, though some disagreements persist. "There are a couple of issues on the nuclear stuff, the highly enriched stockpile, and also the question of enrichment."
"We’re going back and forth on a couple of language points. I do think we’ve made a lot of progress here," Vance told reporters. "It’s very clear that I think the Iranians, they want a deal, and they want to open the Strait of Hormuz."
Vance, however, said he couldn’t say when Trump could sign a deal. "We do think they're negotiating, at least so far, in good faith, and we're making some progress. Hopefully, we'll continue to make progress," he said. "The president will be in a position where he can endorse the agreement, but obviously that's still TBD."
Draft US-Iran agreement
The agreement between the US and Iran is said to include terms for a ceasefire pact involving the Iranian proxy militant group Hezbollah. In the draft from the Iranian side, the terms included a “declaration of the end of war” on all fronts, including Lebanon, for the duration of the negotiations.
The agreement will also permit a period of free navigation through the Strait of Hormuz, the key waterway for commercial shipping, which is currently closed by Iran. Under the U.S. understanding of the memorandum, the strait would reopen immediately, an official said.
The US blockade would be eased depending on how much prewar ship traffic is restored by Iran. However, reports are that Iran has agreed to allow maritime traffic to return to prewar levels for 30 days.
However, Iran still wants to impose some form of service fee for passing vessels, which is being opposed by US President Trump, repeated his assertion that the international waterway should ultimately remain open to all, without any tolls or fees.
As per reports, the US would also agree to relax sanctions, which would enable Iran to sell more of its oil.
Another important addition to the pact is an investment fund for Iran for “reconstruction”. Iran is said to be demanding damage worth $300 billion to $1 trillion, but there is no official confirmation. The US would help facilitate the fund, and the details would be further discussed during the negotiations period, the New York Times quoted diplomats.
Iranian officials said they had proposed to American negotiators that U.S. companies, including major oil and energy corporations, could enter Iran for investments and joint venture deals.
Most importantly, the pact also includes a pledge that the two sides will commit to negotiating the fate of Iran’s enriched uranium and could also allow for the eventual release of some of Iran’s frozen funds.
