Iran-US Draft Deal Would Reopen Hormuz, Free $25 Billion, Waive Oil Sanctions: Report

Iran will continue its nuclear program but refrain from enriching uranium and expanding facilities.

• Tehran has reportedly agreed not to build or acquire nuclear weapons under a draft pact with the United States, per a senior Iranian official.
• The proposal allows Iran to dilute its stockpile of highly enriched uranium, with details to be negotiated over the next 60 days.
• The US will suspend oil sanctions temporarily, permitting Iran to export oil and receive revenue, without imposing additional sanctions until a final agreement is reached.

Tehran has allegedly pledged not to build or acquire nuclear weapons under a draft pact struck with the United States on Sunday, according to a senior Iranian official.

The proposal would allow Iran to dilute its stockpile of highly enriched uranium inside the nation, with details to be negotiated in the next 60 days, Reuters reported, citing a senior Iranian official. 

Under the parameters mentioned, the US would suspend oil sanctions for a defined period, allowing Iran to export oil and receive revenue, and would not apply any additional sanctions until a final agreement is achieved. Iran, on its part, would continue with its nuclear program but refrain from enriching uranium and expanding its facilities.

Under the draft, the Strait of Hormuz would be instantly reopened to all trade ships and the US would end its naval blockade, the official added. Washington would also directly release $25 billion in blocked Iranian assets through cash transfers, regional cooperation, and credit lines.

Iran's Final Decision Awaits

U.S. and Pakistani officials had predicted a signature of the framework on Sunday, but Tehran cast doubt on the timeframe. Foreign Ministry spokesman Esmaeil Baghaei allegedly said it will not be tomorrow but may be "in the days to come." 

Tehran has not yet made a final decision, with political, legal, and technical evaluations underway, Iran's Fars news agency stated, citing an informed source. A source told Reuters that Qatari negotiators headed to Tehran on Sunday to assist in clinching the accord.

Iranian state media IRNA disputed the nuclear provisions, saying the present draft has "no new commitments" on nuclear weapons until the 60-day discussions and that Iran does not pledge to give up control of Hormuz. Before the conflict, almost 20 percent of the world's oil supplies passed through the Strait.

Light Crude Oil Futures (CL_F) ended down in the Friday session, trading around $84.29, down about 3.9% from the previous closing price of $87.71. On Stocktwits, retail sentiment around oil futures improved to ‘bullish’ zone from ‘extremely bearish’ zone over the past week. 

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