The draft version of the Iran-U.S. memorandum of understanding includes a commitment from the U.S. to lift oil sanctions and a commitment from Iran to reopen the Strait of Hormuz within 30 days, Iranian state media reported Friday.
The 14-point document dictates that final negotiations will not begin until the release of half of Iran’s frozen funds, the suspension of Iran’s oil sanctions, and the lifting of the naval blockade, the Mehr News Agency reported.
All American forces would need to withdraw from Iran, and the U.S. and its allies, would need to present reconstruction plans for Iran worth at least $300 billion, according to the report.
CNBC has reached out to the White House for comment.
Peace deal hopes
President Donald Trump on Thursday had claimed that the U.S. “just made a great settlement of the war with Iran,” subject to the “finalization of documents.”
He said in the Oval Office that the Strait of Hormuz would be reopened as soon as a deal is signed.
Israel has yet to comment on the latest draft memorandum of understanding shared by Iranian state media on Friday.
Trump said Thursday that he spoke with Israeli Prime Minister Benjamin Netanyahu and other regional leaders about the potential memorandum or understanding with Iran.
Netanyahu’s office confirmed the conversation later Thursday. It said in a statement that, although Israel is not part of the negotiation with Iran, the prime minister appreciated Trump’s “commitment that the final agreement at the conclusion of the negotiations” will include various restrictions on Iran’s nuclear capabilities and other behaviors.
About 25% of the world’s seaborne oil trade and 20% of global LNG passes through the Strait, the vital oil-shipping route that has become a major chokepoint during the war.
Global stocks surged on Friday on hopes a peace deal would be reached. European shares jumped, with the pan-European Stoxx 600 gaining 1.8% while most major bourses added around 2% in morning trade.
Oil prices tumbled, with U.S. crude oil futures for July delivery falling 1.61%. August futures for Brent, the international benchmark, lost 1.75%.
