The United States and Iran are reportedly on the verge of signing a preliminary agreement in Switzerland on June 19. This landmark memorandum aims to immediately halt hostilities between the two nations and initiate a two-month negotiation period focused on Tehran's nuclear program, sanctions relief, and a comprehensive economic recovery package.
Key Provisions of the 14-Point Draft
A draft memorandum, reviewed by Bloomberg News, details the proposed terms of this arrangement. It calls for an immediate and permanent cessation of conflict across all fronts, including Lebanon, upon its signing. Both countries would commit to refraining from hostile actions, threats of force, and interference in each other’s internal affairs, while respecting mutual sovereignty.
Economic Relief and Development
- $300 Billion Development Package: A central economic provision is a proposed development package worth at least $300 billion. The US and its regional partners would prepare a plan to finance Iran's rehabilitation and economic growth, with mechanisms to be finalized during the 60-day negotiation period.
- Sanctions Waivers and Oil Exports: The US Treasury Department would issue immediate waivers allowing Iran to export crude oil, petrochemical products, and derivatives. These waivers would also cover essential services like banking, insurance, and transportation.
- Release of Frozen Funds: As negotiations advance, frozen or restricted Iranian funds would be released, becoming available for payments selected by Iran's central bank, facilitated by US licenses and approvals.
- Sanctions Removal: The US would commit to ending all sanctions imposed on Iran under a negotiated timetable, covering unilateral US primary and secondary sanctions, as well as measures linked to the UN Security Council and the IAEA Board of Governors.
Nuclear Commitments and Future Negotiations
Iran would reaffirm its commitment to never develop nuclear weapons and maintain its nuclear program unchanged during the initial negotiation phase. However, the memorandum does not resolve all nuclear disputes at this preliminary stage. The future of Iran’s enriched material, its long-term nuclear requirements, and other agreed issues would be decided as part of the final accord.
Shipping and Naval Restrictions
The draft requires the United States to lift its naval blockade immediately after signing the memorandum, ensuring no further interference with Iranian shipping. Maritime traffic involving Iran is expected to return to pre-war levels within 30 days. Simultaneously, Iran would commit to restoring commercial shipping between the Persian Gulf and the Sea of Oman within the same timeframe, which includes clearing mines and removing technical barriers.
Path to a Final Agreement
The two sides would have up to 60 days to negotiate a final agreement, with the possibility of extension by mutual consent. The opening of detailed negotiations is tied to the implementation of several immediate commitments, including the lifting of the naval blockade, restoration of maritime traffic, issuance of oil waivers, and release of frozen funds.
The final accord would include a monitoring mechanism to oversee implementation and future compliance by both countries, and it would require approval through a binding resolution of the United Nations Security Council.