A draft memorandum between Washington and Tehran outlines the reopening of the Strait of Hormuz, sanctions relief, and a massive private investment fund for Iran. Yet major questions remain unresolved, leaving the proposed US-Iran deal far from certain.
How the proposed US-Iran deal would reshape trade and sanctions
The path toward a new US-Iran deal is taking shape through a 14-point draft memorandum negotiated by Washington and Tehran. The document, leaked to several news agencies, establishes a framework for ending the conflict that began when U.S. and Israeli forces launched attacks against Iran on February 28.
The memorandum would lift the U.S. blockade against Iran and pave the way for the reopening of the Strait of Hormuz.
The text is not a final agreement but rather a negotiating framework. The next 60 days are expected to be used to address a wide range of issues, from Iran’s nuclear program and sanctions to regional security. Under the draft, the Islamic Republic of Iran and the United States commit to negotiating a final agreement within a maximum period of 60 days, with the possibility of extending the deadline by mutual consent.
While the memorandum theoretically restores maritime traffic through the Strait of Hormuz, it leaves the nuclear issue largely unresolved. Oil flows are also unlikely to return immediately to pre-crisis levels of around 20 million barrels per day.
The 14-point draft, reviewed by Bloomberg, states that immediately after the memorandum is signed, an event expected to take place on Friday, the United States will lift its naval blockade. Iran, meanwhile, would take immediate measures to ensure that commercial shipping between the Persian Gulf and the Gulf of Oman resumes and gradually returns to pre-war volumes.
That process will depend on the removal of technical obstacles and the neutralization of naval mines deployed by Tehran, an operation expected to take several weeks.
A fragile agreement with a high price tag
Trump has stated that Iran will receive sanctions relief only if it changes its behavior. The situation remains highly unstable because Iran has demonstrated how quickly it can disrupt traffic through Hormuz and could potentially do so again.
Still, if the financial incentives being discussed persuade Tehran to make concessions on its nuclear program, Trump could eventually secure a final US-Iran deal that satisfies U.S. interests, although at a significant cost.
For now, however, Washington has little more than commitments on paper.
Paid VIP passes for ships crossing Hormuz
Among the ideas reportedly being discussed by U.S. officials to accelerate the return of tanker traffic through the Strait of Hormuz is a plan that would offer escorted passage through a paid “VIP pass” system, according to Politico.
President Donald Trump and White House Chief of Staff Susie Wiles are evaluating a range of options designed to encourage shipowners to accept the risks associated with crossing the strait while negotiations continue.
The main challenge is convincing insurance companies to provide coverage for voyages through the region, a task proving far more difficult than reopening the route itself.
A $300 billion fund to support Iran’s development
The draft memorandum also states that the United States and its regional partners would commit to creating a $300 billion economic development fund for Iran.
The mechanism for implementing the fund would be defined as part of the final US-Iran deal and finalized within the 60-day negotiation period.
The fund is intended as an economic incentive to reach a comprehensive agreement. According to Reuters, more than half of the capital has already been pledged, and all financing would come from private-sector sources.
As a result, the initiative resembles a large-scale private investment vehicle rather than a reconstruction or compensation program. It would not include public funding or government subsidies.
Companies based in the United States, Gulf Arab countries, Asia, South America and Africa have reportedly agreed to participate. Planned investments would focus on energy, logistics, manufacturing and transportation.
Sanctions relief remains a key pillar of the US-Iran deal
The United States has committed to supporting the release of Iran’s frozen assets and making them fully accessible. Washington has also pledged to lift all categories of sanctions imposed on Iran according to a timetable that would be negotiated as part of the final agreement.
The measures under discussion include United Nations Security Council resolutions and all unilateral U.S. sanctions, both primary and secondary.
Immediately after the memorandum is signed and until sanctions are formally lifted, the U.S. Treasury Department would issue waivers covering exports of Iranian crude oil, petrochemical products and derivatives, along with all related services, including banking, insurance and transportation.
Iran has reiterated that it will never develop nuclear weapons. The future of enriched uranium stockpiles, and the broader nuclear issue, will be addressed separately as part of the final agreement negotiations.
