Iran and Oman will decide how to manage the Strait of Hormuz in consultation with other Persian Gulf states under a deal to end the Middle East wars, a senior US official told reporters on Wednesday.
Iran and the United States are scheduled to formally sign a memorandum of understanding to end the war in Geneva on Friday. U.S. officials read the memorandum to reporters in a conference call on condition of anonymity because the terms have not been made public.
Under the memorandum, Tehran will allow commercial ships safe, toll-free navigation for 60 days. According to the agreement, Iran will then consult other Gulf states and hold a “dialogue” with Oman “to define its future administrative and maritime services” in Hormuz.
President Donald Trump has repeatedly called for the strait to be closed to traffic after the war ends. No tolls had been imposed by Iran or any other entity before President Trump started the war.
Discussions on how to govern Hormuz should be held “in line with applicable international law and the sovereignty of the Strait of Hormuz littoral states,” the memorandum said.
A senior US official acknowledged that Iran is likely to “assert its rights as aggressively as possible” in regional talks on how to manage Hormuz. But the official said other Gulf states “will never agree to a deal that doesn’t allow free calls.”
Meanwhile, the United States will begin lifting the naval blockade of Iranian ports immediately after signing the memorandum of understanding, and plans to lift the blockade completely within 30 days, officials said.
Until the US and Israel attacked Iran on February 28, ships passed freely through Hormuz without fees or conditions. But Iran has been trying to impose control of the strait since the war began.
Traffic through Hormuz has changed little since the United States and Iran announced they had reached a deal on Sunday. Six tankers were among the 13 commercial vessels that passed through Hormuz on Tuesday, according to data shared by Kpler. Before the war, more than 100 ships sailed through the strait every day.
The Joint Maritime Information Center on Tuesday downgraded the threat level for ships passing through Hormuz from “severe” to “substantial.” Shippers warned that although an attack was still a strong possibility, Iran’s Revolutionary Guards’ actions were “no longer erratic.”
The center is a U.S.-led maritime security organization headquartered in Bahrain that coordinates between allied navies and commercial vessels in the Middle East.
Below is the full text of the memorandum as read by U.S. officials.
By signing this memorandum, the United States of America, the Islamic Republic of Iran, and their allies in the current war declare an immediate and permanent cessation of military operations on all fronts, including Lebanon, and commit to refraining from future wars or military operations with each other, to refrain from the threat or use of force against each other, and to ensure the territorial integrity and sovereignty of Lebanon. The final agreement shall confirm the permanent cessation of war on all fronts, including Lebanon, and the other provisions of this section. The United States and the Islamic Republic of Iran pledge to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs. The United States and the Islamic Republic of Iran are committed to negotiating and reaching a final agreement for up to 60 days, extendable by mutual agreement. Upon signing this memorandum, the United States will begin a naval blockade and the removal of any interference or interference with the Islamic Republic of Iran, and will completely end the blockade within 30 days. Ship traffic during this period will be proportional to the pre-war traffic restored by the Islamic Republic of Iran. The United States further commits to withdrawing its forces from the vicinity of the Islamic Republic of Iran within 30 days of the final agreement. Upon signing this MOU, the Islamic Republic of Iran will use its best efforts to arrange for the safe passage of commercial vessels from the Persian Gulf to the Sea of Oman and vice versa, free of charge, for a period of 60 days. Merchant ship navigation will begin immediately, and demining by the Islamic Republic of Iran will begin within 30 days, taking into account the need to remove technical and military obstacles. The Islamic Republic of Iran will consult with other Persian Gulf littoral states in accordance with applicable international law and the sovereignty of the Strait of Hormuz littoral states and will conduct a dialogue with the Sultanate of Oman to define future administrative and maritime services in the Strait of Hormuz. The United States is committed to working with regional partners to develop a final, mutually agreed upon plan of at least US$300 billion for the reconstruction and economic development of the Islamic Republic. of Iran. Mechanisms for implementing the plan are expected to be finalized within 60 days as part of the final agreement. All licenses, releases, and permissions necessary for related financial transactions are granted by the United States. As part of the final agreement, the United States commits to ending all types of sanctions against the Islamic Republic of Iran, including UN Security Council resolutions, IAEA Board resolutions, and all primary and secondary unilateral US sanctions, according to an agreed schedule. The Islamic Republic of Iran and the United States of America recognized the critical importance of the above-mentioned sanctions relief issues and expressed their intention to immediately address these issues in negotiations to achieve mutual agreement. The Islamic Republic of Iran reaffirms that it will not procure or develop nuclear weapons. The United States and the Islamic Republic of Iran have agreed to resolve the disposal of stockpile concentrate materials according to a mutually agreed upon mechanism according to the schedule set forth in paragraph 7, using a minimal methodology of on-site down-blending under IAEA supervision. The two countries also agreed to discuss matters of mutual agreement related to enrichment issues and the nuclear needs of the Islamic Republic of Iran, based on a satisfactory framework agreed in the final agreement. The final transaction will confirm the provisions of this section. The United States of America and the Islamic Republic of Iran recognize the critical importance of the above nuclear issues and express their intention to immediately address these issues in negotiations in order to achieve mutual agreement on these issues. Until a final agreement is reached, the United States and the Islamic Republic of Iran agree to maintain the status quo. The Islamic Republic of Iran will maintain the status quo of its nuclear program, and the United States will not impose new sanctions or send additional troops to the region. The United States commits that, immediately upon the signing of this MOU, the U.S. Treasury will exempt exports of Iranian crude oil, petroleum products, and derivatives, and all related services, including banking, insurance, and services, until sanctions end. The United States is committed to providing full access to frozen or restricted funds and assets of the Islamic Republic of Iran. Upon implementation of the MOU, the United States and the Islamic Republic of Iran will mutually agree upon procedures related to the release of these funds during negotiations. Such funds, whether held in the original account or transferred, shall be fully available for payment to the ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States undertakes to issue all necessary licenses and authorizations accordingly. The United States and the Islamic Republic of Iran agree that an enforcement mechanism will be established to monitor the successful implementation of this MOU and future compliance with the final agreement. After signing this MOU, subject to the commencement of implementation of paragraphs 1, 4, 5, 10, and 11 of this MOU and the continued implementation of these measures, the United States and the Islamic Republic of Iran will begin negotiations on a final agreement with respect to the other paragraphs only. The final agreement will be approved by a binding Security Council resolution.
—Eamon Javers contributed to this report.
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