$300 billion, sanctions lifted, Strait of Hormuz reopened: What Tehran gets from peace deal MOU, what Washington gets

The U.S.-Iran Peace Memorandum of Understanding (MoU) outlines a comprehensive framework aimed at ending military confrontation, opening the Strait of Hormuz, releasing Iran’s frozen assets, providing $300 billion for reconstruction, and opening the door to longer-term negotiations. Although the agreement still needs to be finalized within 60 days, both sides will gain significant strategic, economic and diplomatic benefits.US President Donald Trump and Iranian President Masoud Pezeshkian virtually signed a 14-point memorandum of understanding (MoU) on Thursday, setting out a roadmap to end military hostilities, resume commercial activity in the Strait of Hormuz and begin a 60-day negotiating process to reach a final agreement on sanctions relief, economic cooperation and Iran’s nuclear program.However, Reuters quoted a U.S. official as saying that the two sides could still abandon the memorandum of understanding set to be signed on Friday and that upcoming negotiations are likely to focus on the precise sequence of steps previewed in the preliminary agreement.“I think the meeting in Switzerland will be very critical to really understand how we get to the next stage,” they said.They added: “It has to be both sides…agreeing on the full scale of what they are going to do and then agreeing on the sequencing of who is going to do what and when, and that’s really the crux of the negotiations.”

what will iran gain

Sanctions lifted, economic recovery

A major gain for Tehran would be the lifting of widespread U.S. and international sanctions. The memorandum of understanding states that Washington will work to end all sanctions, including unilateral U.S. measures and restrictions related to the United Nations Security Council and the International Atomic Energy Agency (IAEA).The agreement also provides for the issuance of exemptions to allow the resumption of Iranian crude oil exports, petroleum products and related banking, insurance and transportation services.“The United States of America commits to ending all types of sanctions against the Islamic Republic of Iran, including United Nations Security Council resolutions, International Atomic Energy Agency Board of Governors resolutions, and all unilateral U.S. primary and secondary sanctions, as part of a final agreement, in accordance with an agreed-upon timeline,” the memorandum of understanding said.For Iran, lifting sanctions could unlock frozen funds, revive trade and attract foreign investment after years of economic isolation.

Get frozen assets

Under the agreement, the United States will allow Iran to use frozen or restricted funds and assets once the memorandum of understanding is implemented. The two sides will negotiate procedures for the release of these funds, which can then be used for payments designated by the Central Bank of Iran.The move could provide Tehran with the financial resources it needs to stabilize its economy.“The United States of America is committed to making full use of the frozen or restricted funds and assets of the Islamic Republic of Iran upon execution of this Memorandum of Understanding. The United States of America and the Islamic Republic of Iran will agree on procedures for releasing these funds during negotiations. “

$300 billion for reconstruction

The memorandum of understanding includes a commitment by the United States and regional partners to develop a program worth at least $300 billion for Iran’s reconstruction and economic development.The framework said the mechanisms for implementing the investment plan will be finalized within 60 days as part of the final agreement.“The United States of America is committed to working with regional partners to develop a clear, mutually agreed-upon plan of at least $300 billion for the reconstruction and economic development of the Islamic Republic of Iran. The implementation mechanisms for this plan will be finalized within 60 days as part of a final agreement,” the memorandum of understanding said.

Lift the U.S. naval blockade

The United States pledged to lift its naval blockade on Iran. It also said it would withdraw its troops from near Iran within 30 days of a final deal.“Immediately upon the signing of this Memorandum of Understanding, the United States of America will begin to lift the naval blockade and any disruptions or obstructions to the Islamic Republic of Iran and will completely end the naval blockade within 30 days. During this period, vessel traffic will be proportional to the amount of pre-war traffic restored by the Islamic Republic of Iran. The United States of America also commits to withdraw its forces from the vicinity of the Islamic Republic of Iran within 30 days of the end of the final agreement,” the MOU states.

Security guarantee and reduce military pressure

Iran would benefit from both sides’ commitment to end military operations and refrain from future use or threat of force against each other.The deal also includes a U.S. commitment to lift its naval blockade and stop deploying troops near Iran once a final deal is reached.

nuclear negotiations No immediate upgrade

The MOU recognizes Iran’s commitment not to develop nuclear weapons while allowing discussion of its nuclear program, including enrichment and the disposal of enriched material.Until a final deal is reached, the two sides will maintain the status quo – with Iran freezing its nuclear activities at current levels and the United States refraining from imposing new sanctions or deploying additional troops to the region.

What will the United States gain?

Limitations on Iran’s Nuclear Program

A key U.S. goal is to ensure that Iran does not develop nuclear weapons. Under the memorandum of understanding, Tehran reiterated that it would not develop nuclear weapons and agreed to negotiate a mechanism to deal with its stockpiles of enriched material under the supervision of the International Atomic Energy Agency.The final deal would also establish a framework to address Iran’s enrichment activities and broader nuclear needs.“The Islamic Republic of Iran reaffirms that it will not procure or develop nuclear weapons. The United States of America and the Islamic Republic of Iran have agreed to address the disposal of stockpiled enriched material through a mutually agreed upon mechanism in accordance with the timetable referred to in paragraph seven, which will at a minimum involve on-site blending under the supervision of the IAEA,” the MoU said.

Hormuz opens

The deal includes arrangements to resume commercial shipping through the Strait of Hormuz, one of the world’s most important energy shipping lanes.Iran pledged to facilitate the safe passage of commercial vessels for an initial 60 days while continuing discussions on future maritime arrangements involving Oman and other Gulf states.“After signing this Memorandum of Understanding, the Islamic Republic of Iran will do its best to make arrangements to ensure free and safe passage of commercial ships between the Persian Gulf and the Sea of ​​Oman for only 60 days and vice versa. Navigation of commercial vessels will begin immediately, and the Islamic Republic of Iran will begin demining within 30 days, taking into account the need to remove technical and military obstacles. “said the memorandum of understanding.The Islamic Republic of Iran will engage in dialogue with the Sultanate of Oman and discussions with other Persian Gulf littoral states to determine the future management and maritime services of the Strait of Hormuz in accordance with applicable international law and the sovereign rights of the states littoraling the Strait of Hormuz.

Diplomatic alternatives to protracted conflict

For Washington, the deal establishes diplomatic channels with Tehran rather than relying solely on military pressure and sanctions.The MoU also proposes an enforcement mechanism to monitor implementation and ensure compliance with the final agreement.“The United States of America and the Islamic Republic of Iran agree to establish an enforcement mechanism to oversee the successful implementation of this Memorandum of Understanding and future compliance with the final agreement,” the statement said.Despite the broad commitments, many details of the deal remain to be negotiated. The two sides agreed to reach a final agreement within 60 days, covering issues such as lifting sanctions, nuclear restrictions, economic cooperation and security guarantees.The deal’s success will depend on whether Washington and Tehran can move from commitments on paper to verifiable action on the ground.