Peace deal allows Iran oil sales, $300bn fund, sanctions relief
Iran and the US have agreed to a draft memorandum allowing Iran to sell oil immediately, access a $300 billion development fund, and end its naval blockade of the Strait of Hormuz in exchange for a 60-day ceasefire and nuclear program restrictions. The deal, set to be signed on June 19 in Switzerland, includes a 60-day negotiation period for a permanent truce and the reopening of the strait, which carries one-fifth of global oil trade.
A proposed agreement between Iran and the United States outlines financial incentives for Tehran, including immediate permission to sell oil, access to a $300 billion development fund, and the release of frozen assets, according to a Bloomberg News report. The draft memorandum of understanding, agreed upon on Sunday, requires Iran to end its chokehold on the Strait of Hormuz and commit to never pursuing a nuclear weapon. The formal signing is scheduled for June 19 in Switzerland, with a 60-day negotiation period to finalize a permanent truce and stricter nuclear limits. The US Treasury Department plans to issue waivers for Iranian crude oil and petrochemical exports immediately after the memorandum is signed, ending the naval blockade. Traffic through the Strait of Hormuz must return to prewar levels within 30 days, though oil sales may initially apply only to oil already loaded onto tankers. The US will also lift its blockade of Iranian ports, while Iran will restore maritime traffic through the strait, which handles about 20% of global oil trade. The agreement extends a ceasefire announced in April for another 60 days, during which both sides will negotiate a permanent truce. The Strait of Hormuz, blocked since US and Israeli strikes on February 28, is set to reopen on June 19, though shipping companies remain cautious. Iranian state television confirmed the start of operations to lift the maritime blockade, though coordination with Iran’s Revolutionary Guards is still required. The US and its regional partners will prepare a $300 billion plan to rehabilitate Iran’s economy, though details on funding sources remain unclear. Vice President JD Vance will lead the American delegation at the signing ceremony in Bürgenstock, Switzerland, while Iran is expected to be represented by Parliament Speaker Mohammad Bagher Ghalibaf. Technical details are still under review, and the final agreement’s release timeline varies between US officials.
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