The United States is expected to contribute $300 billion (equivalent to £223 billion) towards the reconstruction of Iran as part of a new agreement negotiated by President Donald Trump with Tehran. The deal, which includes the complete reopening of the Strait of Hormuz, is set to be officially signed in Switzerland, with Trump confirming that the agreement is already in place. This pact entails the lifting of all American and United Nations sanctions on Iran, contingent upon a final resolution regarding Iran’s nuclear program.
Leaked drafts of an initial agreement align closely with the reported terms of the deal to end the conflict. Notably, Iran will be granted the freedom to sell its oil without constraints, a provision that exceeds the terms of the 2015 Iran nuclear deal, which Trump had criticized as the “worst deal ever.” Anticipated backlash is expected in Washington as the U.S. and Iran gear up for 60 days of negotiations to finalize the agreement.
Furthermore, the agreement signals a setback for Israeli Prime Minister Benjamin Netanyahu, who had committed Israeli forces alongside the U.S. at the war’s outset. The deal mandates an immediate cessation of hostilities between Israel and the Iranian-backed militia Hezbollah in Lebanon, with Iran insisting on the withdrawal of Israeli forces. However, Israel maintains its stance on self-defense and territorial control in Lebanon.
The Trump administration asserts that the agreement will effectively prevent Iran from developing nuclear weapons, although Iran seems to be making minimal concessions while reaping substantial benefits from the agreement’s current form. The deal aims to restore the region to its pre-war state, with peace and open passage through the Strait of Hormuz, while the more significant aspects, such as the reconstruction funds, sanctions relief, and asset unfreezing, hinge on further progress in nuclear negotiations with Iran.
Details of the agreement were leaked by the Saudi-owned broadcaster Al Arabiya, with insiders confirming that the reported text closely aligns with the actual memorandum of understanding.