White House discloses outline of deal to end Iran war, open Strait of Hormuz

WASHINGTON — The White House on Wednesday read to reporters a 14-point memorandum of understanding with Iran to stop the ongoing war and allow for further negotiations, but did not release the exact text.

The 60-day MOU outlines the opening of the Strait of Hormuz, sanctions relief and reconstruction funds for Iran, and the promise of negotiations on Iran ending its nuclear program. Senior administration officials say economic and sanctions relief will only occur if Iran is on “good behavior.”

“If we think that they’re just dragging us along and kind of bull- – – -ting us, then we’ll be very quick to pull the plug on it and go back to tightening the screws on them very, very aggressively,” a senior administration official who did not want to be identified said on a Wednesday afternoon call with reporters.

President Donald Trump told reporters in France he “might” stay in Europe for the ceremonial signing of the memo, but doubted it.

“This is a memorandum of understanding. It’s very important, but it might not be the kind of a document that I should be signing,” Trump told reporters at his final press conference of the G7 summit, a meeting of the world’s wealthiest capitalist economies.

Earlier Wednesday he told reporters at the G7, “If I don’t like it, we’ll go back to shooting at them, dropping bombs on their head.”

Trump announced Monday he had reached a ceasefire agreement with Iranian officials to temporarily end the war, which has lasted longer than 100 days, but the administration had not released any part of the agreement until Wednesday. Members of the U.S. Senate complained they had not seen the details and some said they wanted to vote on a final agreement.

Iran’s Prime Minister Shehbaz Sharif confirmed in a social media post Monday that a deal had been reached.

Iranians requested the United States not release the text until language was finalized, according to a second senior administration official who added “it was obviously unfortunate we weren’t able to put it out right away.” 

“We were trying to accommodate their domestic messaging and their domestic politics. We’re trying to build trust with them, and that’s what they asked us to do, so we agreed to do it.”

Iran’s Foreign Minister Seyed Abbas Araghchi warned on social media June 12 against speculation on the deal which “has never been closer” and said details would be shared with the public “in due course.”

Nuclear weapons

The 14-paragraph “Islamabad memorandum of understanding between the United States of America and the Islamic Republic of Iran,” which the second senior administration official read on the call, declares an “immediate and permanent termination of military operations on all fronts, including in Lebanon.”

The White House declined to provide a written copy of the MOU to reporters.

Israel’s Prime Minister Benjamin Netanyahu has not agreed publicly to withdraw forces from Lebanon, which emerged as a second front of the war that the U.S. launched in tandem with Israel in February.

The U.S. and Iran have 60 days, “extendable with consent” to reach a final deal.

According to the agreement, Iran “reaffirms that it shall not procure or develop nuclear weapons.”

The document charges the U.S. and Iran to agree on how to deal with Iran’s buried stockpile of enriched uranium, with the minimum arrangement being the “down blending” of the material on site under the supervision of the International Atomic Energy Agency.  

“The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs based on a satisfactory framework being agreed upon in the final deal,” according to the MOU.

In 2018, Trump pulled the U.S. out of a previous nuclear agreement brokered by former President Barack Obama’s administration.

Obama appeared skeptical Saturday of Trump’s nuclear negotiations with Iran.

“It is doubtful that any agreement that arises is going to be significantly different or a significant improvement from the deal that we had in the first place and had worked for, for a long stretch of time before we, the United States, pulled out of it,” he told ABC News’ Robin Roberts.

Reopening Strait of Hormuz

The agreement also commits the U.S. to “immediately” begin the removal of its naval blockade on Iranian ports, with a full and final stoppage to occur within 30 days.

The U.S. will also have to remove military forces from the vicinity of Iran, meaning the American forces “will return our force posture in the region to that which existed before the conflict started,” according to the administration official.

Roughly 40,000 troops were in the region prior to the war. That number increased to approximately 50,000 after Feb. 28.

For its part, Iran must “make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa,” according to the agreement. 

However, the MOU continues: “The traffic of commercial vessels will immediately start in considering the need for removing the technical and military obstacles, and demining by the Islamic Republic of Iran will be instated within 30 days.”

From there, Iranian officials agreed to negotiate a plan with the sultan of Oman and Persian Gulf states on “future administration and maritime services in the Strait of Hormuz.”

The war’s de facto closing of the strait has rocked economies across the globe, as 20% of the world’s petroleum exports passed uninterrupted through the narrow waterway prior to the conflict. Oil prices reached $120 per barrel during the height of the conflict but have fallen to roughly $79 this week.

Article 38 of the United Nations Convention on the Law of Sea declares passage through straits a right that should not be impeded, though neither the U.S. nor Iran are party to the international agreement.

$300B in reconstruction funds

In perhaps one of the most “controversial” parts of the MOU, according to the senior official, Iran could see up to $300 billion in reconstruction funds.

The White House official was quick to downplay the prospect of Iran reaping billions of U.S. dollars.

“Note that it doesn’t require us to do anything to, one, to ever pay a cent of money to the Iranians, (and) to ever contribute money to this reconstruction fund,” the official said.

“What it says is that if we get to a final deal, and if the Iranians behave, we will permit the sanctions relief that would allow, for example, the Emiratis to build a power plant in Iran. That’s all it says. If they do what they have to do, we will permit the investment and the reconstruction of their country,” the official said.

Additionally, upon the signing of the MOU, the U.S. Department of Treasury will immediately issue waivers for the export of Iranian crude oil and other petroleum products, as well as associated activities, including bank transactions and insurance, according to the document.