Iran is set to receive broad financial incentives as part of its agreement with the U.S., including the right to sell oil immediately, tap a $300 billion development fund and get eventual access to its frozen assets, according to a final draft of the deal.
While the contours of the memorandum of understanding have been circulating for days, the latest document ¡ª a copy of which was seen by Bloomberg News on Wednesday ¡ª offers the most complete accounting yet of the economic boost Iran is set to receive for ending its chokehold on the Strait of Hormuz and reiterating its commitment never to seek a nuclear weapon.
The two sides agreed to the deal on Sunday and plan to formally sign it Friday in Switzerland, clearing the way for 60 days of talks intended to end the war for good and put strict new limits on Iran¡¯s nuclear program. Neither side has formally released the text but the U.S. has begun circulating it with allied nations at the Group of Seven (G7) summit in France, a person familiar with the matter said.
Another person familiar with its contents, who asked not to be identified discussing private deliberations, said technical details were still being worked out. That suggested precise language may still change before the signing.
Under its terms, the U.S. Treasury Department ¡°will issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives¡± immediately after the memorandum is signed. The U.S. will lift its naval blockade and the two countries will work to ensure that traffic in the Strait of Hormuz returns to its prewar level within 30 days.
According to the draft document, the U.S. and its regional partners would create a plan to rehabilitate Iran and allow for its economic development, with financing of at least $300 billion. It is vague on the release of Iran¡¯s frozen assets, saying the U.S. undertakes that those funds ¡°will be released and made fully available¡± without setting a timeline.
Asked for comment, a U.S. official declined to discuss the specifics of the draft but said Iran can only get the benefits of the deal if it meets its commitments. Those include never getting a nuclear weapon, neutralizing its enriched material and allowing free navigation in the strait.
Trump had earlier denied that the U.S. would pay Iran $300 billion. The draft says only that the U.S. and its partners would ensure financing of that amount.
The agreement offers a mix of immediate and eventual incentives for Iran while committing it to never seek a nuclear weapon. The country has long insisted it doesn¡¯t want an atomic bomb and had committed not to seek one...
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