Proposed Iran-U.S. deal would reopen Hormuz strait and lift oil sanctions, Iran state media says

Proposed Iran-U.S. accord would reopen Strait of Hormuz and ease oil sanctions, Iranian state media reports

The United States and Iran could sign an agreement as early as Sunday, according to Iranian state media accounts of a draft memorandum that would require the United States to lift oil sanctions and Iran to reopen the Strait of Hormuz within 30 days.

The 14-point document, reported by the Mehr News Agency, states that final negotiations would not start until half of Iran’s frozen funds are released, Iran’s oil sanctions are suspended, and the naval blockade is lifted. The same report says all U.S. forces would withdraw from Iran and that the United States and its allies would present reconstruction plans valued at a minimum of $300 billion. These specific provisions have not been confirmed by U.S. officials.

Bloomberg reported later on Friday, citing people familiar with the plans, that a signing could occur in Switzerland on Sunday. The report coincided with preparations for the G7 summit scheduled for June 15–17 in Evian, France. Iran’s official news agency IRNA quoted a foreign ministry spokesperson describing the reported time and location as media speculation and stating that an official announcement would follow once the government reaches a final conclusion. CNBC has sought comment from the White House.

On Thursday, President Donald Trump stated in the Oval Office that the United States had “just made a great settlement of the war with Iran,” subject to finalization of documents. He added that the Strait of Hormuz would reopen once an agreement is signed. Israel has not issued a public response to the draft memorandum circulated by Iranian state media. Trump said he had discussed the potential memorandum with Israeli Prime Minister Benjamin Netanyahu and other regional leaders. Netanyahu’s office confirmed the call and noted that, although Israel is not a party to the talks, the prime minister welcomed Trump’s commitment that any final agreement would include restrictions on Iran’s nuclear capabilities and other activities.

Approximately 25 percent of the world’s seaborne oil trade and 20 percent of global liquefied natural gas transit the Strait of Hormuz. Global equity markets rose on Friday following the reports. The pan-European Stoxx 600 index gained 1.8 percent, while most major European bourses advanced around 2 percent in morning trading. U.S. crude oil futures for July delivery fell 1.61 percent, and August Brent futures declined 1.75 percent.

The details of the 14-point document and the $300 billion reconstruction figure originate solely from Iranian state media and have not been corroborated by U.S. authorities.