A senior Iranian official has claimed that there is a possibility of agreement on many important issues in the draft Memorandum of Understanding (MoU) prepared between America and Iran. According to Reuters report, the draft includes reopening of the Strait of Hormuz, relief from oil sanctions on Iran, release of frozen assets and new conditions on the nuclear program. According to the official, if both sides agree to this draft, detailed negotiations will be held on the terms of the final agreement within the next 60 days.
Proposal to open the Strait of Hormuz
According to the draft, Iran will immediately open the Strait of Hormuz to all commercial vessels. In return, America will end its naval blockade of Iranian ports. The Strait of Hormuz is one of the most important oil transportation routes in the world. A large part of the global oil and gas supply passes through this route. In such a situation, the opening of this route can provide great relief to the international energy market.
Oil sanctions relief and $25 billion worth of wealth
On the financial front, the draft includes a proposal by the US not to impose any new sanctions on Iran, at least until a final deal is reached. Apart from this, America can also agree to give temporary relaxation in some restrictions on Iran’s oil exports. This will give Iran an opportunity to sell oil in the international market and earn income from it.
According to the report, America is also considering releasing Iran’s frozen assets worth about $25 billion. This amount can be made available through cash transfer, regional cooperation and financial credit arrangements.
Strict conditions on nuclear program
On the nuclear issue, Iran has reportedly assured that it will neither make nuclear weapons nor try to acquire them. Additionally, Iran will not increase uranium enrichment or expand its nuclear facilities until a final agreement is reached. On the other hand, America wants Iran to reduce its stockpile of highly enriched uranium. The modalities of this process will be discussed in the next 60 days.
Expected to reduce tension in the Middle East
If this agreement takes final form, it may reduce the ongoing tension in the Middle East. Besides, there is a possibility of stability returning to the global oil market, normalization of energy supply and relief to Iran’s economy. However, this draft has not yet been officially confirmed by America, hence all eyes are on the upcoming talks.
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