US-Iran Deal: Strait of Hormuz to Reopen, Oil Sales Resume

DUBAI, United Arab Emirates (AP) — Iran will reopen the Strait of Hormuz and sell oil freely once a tentative deal with the U.S. is signed, according to leaked copies of the interim agreement. The accord, due to be signed Friday in Switzerland, gives Iran major benefits upfront. The U.S. will immediately allow Iran to sell oil without restrictions. It also promises at least $300 billion to rebuild Iran after the war and to end all American and United Nations sanctions, if a final agreement on Iran’s nuclear program is reached. These terms go further than the 2015 nuclear deal, which former President Donald Trump called the "worst deal ever" and left. The new agreement is likely to face strong criticism in Washington. The deal calls for an immediate end to fighting in Lebanon between Israel and the Iranian-backed group Hezbollah. This is a sensitive issue, as Israel wants to keep troops in Lebanon. Iran says Israel must withdraw, but the leaked text does not mention withdrawal. The two sides will start 60 days of talks on a final deal. The U.S. wants to prevent Iran from ever building a nuclear weapon. Iran says its program is peaceful, but it has enough enriched uranium to make several bombs. **Relief for Global Economy** Reopening the Strait of Hormuz is a major win for the world economy. Before the war, a fifth of all traded oil and gas passed through this narrow waterway. Iranian attacks shut the strait, driving up energy and food prices worldwide. The deal calls for the U.S. to lift its blockade of Iranian ports. The strait should return to normal traffic within 30 days, though Iranian mines in the water may need to be cleared. **Major Concessions to Iran** The U.S. will immediately issue waivers for Iranian oil sales. This removes a key source of U.S. leverage at the start of talks. In the 2015 deal, such sanctions were only lifted at the end. The interim deal also promises to eventually end all U.S. and U.N. sanctions on Iran. The schedule will be worked out later. This goes far beyond the 2015 deal, which only lifted some sanctions in exchange for Iran reducing its uranium. The $300 billion rebuilding fund is an extraordinary benefit for Iran. U.S. Vice President JD Vance has said Gulf Arab nations will provide that money as investments. **Unresolved Issues** The 60-day window for nuclear talks can be extended. Iran repeats its promise to never build nuclear weapons, a promise it also made in 2015. It is unclear if Iran’s new Supreme Leader will follow that policy. The deal falls short of Trump’s war goals, which included ending Iran’s missile program and support for proxy groups. It also exposed a rift between Israeli Prime Minister Benjamin Netanyahu and Trump. Netanyahu faces domestic criticism over the deal but depends on U.S. support.