Details of the memorandum of understanding (MoU) reached between the United States and Iran have emerged after both sides said, on Sunday, that they had reached a deal to end the Middle East war on all fronts, including Lebanon.

The MoU will also allow for the full reopening of the vital Strait of Hormuz and provide relief from the sanctions levelled against Iran.

CNN and Reuters obtained drafts of the 14-point MoU, which is set to be signed in Switzerland on Friday.

Here are the details.

REMOVAL OF US BLOCKADE ON STRAIT OF HORMUZ

Control of the waterway has been contested since the war between Iran and the US/Israel broke out in February.

Iran’s de-facto blockade of the strait crippled oil flow worldwide, hiking prices and forcing governments to take hard-biting energy conservation measures.

US President Donald Trump later announced a blockade imposed by American naval forces on the strait

The blockade was designed to prevent Iran from selling its oil, depriving it of crucial revenue while also potentially creating a situation where Tehran has to shut off production because it has nowhere to store the oil.

The US has now agreed to remove its forces from the Middle Eastern waters, the new agreement showed.

“Immediately upon the signing of this MOU, the United States of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days,” the draft document reads.

“During this period, the traffic of vessels will be in proportion to the numbers of pre-war traffic being restored by the Islamic Republic of Iran. The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal.”

300 BILLION DOLLAR RECONSTRUCTION PACKAGE

Under the new agreement, Iran would receive a reconstruction package worth $300 billion from the US.

The Iranian Red Crescent Society reported that more than 85,000 civilian structures were damaged or destroyed, including 64,583 homes, 600 schools, and 281 medical facilities.

Energy infrastructure also sustained significant damage in targeted strikes on refineries, gas processing sites, and export-related facilities, with some installations taken offline after sustaining direct hits that damaged critical processing units.

Military and naval assets were eliminated in significant numbers, with the US Central Command reporting that 60 Iranian naval vessels were destroyed, including fast-attack craft operated by the Islamic Revolutionary Guard Corps in the Persian Gulf.

The war came at a time when Iran was already experiencing severe economic hardship.

Following the conflict, the rial plummeted to unprecedented levels, reaching 1.9 million rials against the US dollar by late April, losing more than half its value over the past year.

The implementation mechanism of the reconstruction package will be formulated within 60 days, according to the agreement.

LIFTING OF SANCTIONS

The US had imposed multiple sanctions on Iran over its involvement in “state sponsorship of terrorism”, its nuclear enrichment programme, and aggressive actions in the Persian Gulf.

These sanctions comprised asset freezing, trade embargoes, and loan restrictions.

But in the new deal, the US said it would commit to ending, on a schedule to be agreed upon as part of the final agreement, all types of sanctions currently facing the Islamic Republic.

The US Treasury Department will also issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives, and all related services, including banking, insurance, transportation, and the like, upon lifting of sanctions.

IRAN TO NEVER DEVELOP NUCLEAR WEAPON

As part of the agreement, Iran will commit to never producing or procuring nuclear weapons.

Both countries also agreed to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with a “minimum methodology” that will include down-blending under supervision from the International Atomic Energy Agency, the UN nuclear watchdog.

The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal

BOTH COUNTRIES TO REFRAIN FROM FURTHER INTERFERENCE

The US and Iran agreed to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.

Both countries committed to negotiating and achieving the final deal in a maximum of 60 days, extendable with mutual consent.
By Claire Mom
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