What's in Iran deal US President Trump says he is ready to sign

Even as there are no signs of a deal being signed on Sunday, contrary to US President Donald Trump's claim a day earlier, a senior Iranian official has shared the broad contours of a potential agreement under discussion between Tehran and Washington.

Speaking to Reuters on condition of anonymity, the official said a draft memorandum of understanding covers a range of issues, including Iran's nuclear programme, the reopening of the Strait of Hormuz and US sanctions relief.

The official added that negotiations on a comprehensive final agreement would continue for 60 days after the memorandum is signed.

According to the Iranian official, the draft memorandum includes the following provisions:

STRAIT OF HORMUZ

The most significant part of the agreement deals with the reopening of the Strait of Hormuz for global traffic. According to the Iranian official, Iran would be required to immediately reopen the Strait of Hormuz while the United States would begin lifting its naval blockade on Iranian ports.

The easing of the US blockade would commence as soon as the memorandum is signed and would be completed within 30 days, the official said.

ECONOMIC RELIEF AND SANCTIONS EASING

Under the proposed framework, the United States would refrain from imposing any new sanctions on Iran while negotiations on a final agreement remain underway.

Following the conclusion of a comprehensive deal, Washington and its allies would begin lifting US and United Nations sanctions on Iran according to a mutually agreed timeline.

The proposal also includes a temporary waiver of US oil sanctions, allowing Tehran to resume oil exports and access related revenues.

In addition, the United States would facilitate the release of approximately $25 billion in frozen Iranian assets through a combination of direct transfers, regional financial cooperation and credit mechanisms.

The framework further envisages the preparation of a reconstruction and economic development plan for Iran by the United States and its regional partners. The plan would be negotiated with Tehran and finalised within 60 days.

NUCLEAR COMMITMENTS

Under the proposed agreement, Iran would formally commit to neither developing nor acquiring nuclear weapons.

Pending a final settlement, Tehran would maintain the current status of its nuclear programme and refrain from further uranium enrichment or the expansion of nuclear facilities.

The United States would also allow Iran, under a future comprehensive agreement, to dilute its existing stockpile of highly enriched uranium within the country.

Key issues relating to Iran's nuclear programme, including future enrichment activities and the handling of its stockpile of highly enriched uranium, would be negotiated during the 60-day period following the signing of the memorandum and incorporated into a final agreement.

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