Iran to reopen Hormuz, free to sell oil: Officials

DEAL LEAKED? | US-backed pact offers $300 billion rebuilding pledge, sanctions relief, restarts stalled nuclear negotiations

AP

Dubai

Iran will reopen the Strait of Hormuz immediately and resume unrestricted oil expo­rts under a tentative agreement with the US to end the war, according to leaked cop­i­es of the interim deal due to be signed in Switzerland on Friday.

The accord also envisages at least $300 billion for Iran's post-war reconstruction and says the US will work towards lifting American and UN sanctions if a final agreement on Tehran’s nuclear programme is reached.

The US and Israel launched military action on Feb 28, citing concerns that Iran could develop a nuclear weapon. However, the interim agreement halts the conflict before that issue is resolved and instead opens a 60-day window for negotiations on Iran's nuclear activities.

The deal appears to grant Iran significant early benefits. The US would immediately allow Tehran to sell oil without restrictions and could eventually support the lifting of all sanctions, terms that go beyond the 2015 nuclear pact from which US President Donald Trump withdrew during his first term.

The agreement is likely to face criticism in Washington and could be viewed as a setback for Israeli PM Benjamin Netan­yahu, who is facing growing scrutiny at home over the outcome of the conflict.

Much of the accord restores the pre-war status quo. It provides for a ceasefire, the reopening of the Strait of Hormuz and renewed US-Iran negotiations. It also includes an end to hostilities between Israel and Hezbollah in Lebanon, although questions remain over Israel's military presence there.

Officials familiar with the negotiations said leaked versions published by Al Arabiya and Bloomberg broadly match the final text. The White House has not released the agreement and disputed reports that the leaked documents reflect its exact language. Iran has also not published an official version.

According to officials involved in mediation efforts, some benefits for Iran, including the release of frozen assets and broader sanctions relief, will depend on progress in future nuclear talks. However, sanctions waivers allowing oil exports would take effect immediately.

Analysts note that restoring Iran's oil trade removes a major source of US leverage at the start of negotiations. The interim agreement also opens the possibility of lifting all remaining US and UN sanctions, a step that goes beyond the scope of the 2015 accord.

The deal would also ease pressure on global markets by reopening the Strait of Hor­muz, a critical energy route. It says normal maritime traffic should resume within 30 days.

The 60-day negotiating period can be extended. In the agreement, Iran reiterates that it will never develop a nuclear weapon, a pledge it also made under the 2015 nuclear deal.