A potential US-Iran agreement brokered by Qatar could see billions in frozen assets released and the Strait of Hormuz reopened, but deep divisions over nuclear concessions and sanctions relief threaten to derail a final resolution.
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US-Iran Deal Nears, Potentially Unlocking $12 Billion and Easing Oil Choke Point
The United States and Iran are closing in on an agreement to formalize a ceasefire, a deal that could unlock up to $12 billion in frozen Iranian assets and reopen the critical Strait of Hormuz. The potential breakthrough, mediated by Qatar, comes as both nations seek to de-escalate a conflict that has roiled global energy markets.
"We’re either going to have a good agreement or we’re going to have to deal with it another way," US Secretary of State Marco Rubio said, acknowledging there is "a pretty solid thing on the table." However, Iranian Foreign Ministry spokesman Esmail Baghaei offered a more cautious view, stating, "To say this means an agreement is about to be signed — no one can make such a claim."
The proposed memorandum of understanding reportedly sets a 60-day roadmap for a final deal. Disagreements persist over the sequencing, with Iran demanding the immediate release of at least a portion of its frozen funds, while the US insists assets will only be unfrozen after the Strait of Hormuz, a conduit for nearly 20% of the world's oil supply, is fully reopened.
At stake is the stability of the global oil supply and a fragile truce in the Middle East. A successful deal would likely put downward pressure on crude prices by returning Iranian supply to the market. However, failure to resolve core issues, particularly the fate of Iran's nuclear program, could lead to a renewed and more intense conflict.
Strait of Hormuz Reopening Tied to Sanctions
The mechanics of reopening the Strait of Hormuz and unfreezing Iranian assets remain a primary obstacle. According to a senior US administration official, the process would be proportional: "As the Strait opens, the blockade loosens proportionately." President Trump has reinforced this, stating the US naval blockade on Iranian ports "will remain in full force and effect until an agreement is reached."
Iran, however, has presented a different interpretation. State-linked media outlets report that Tehran would retain supervision over the waterway, coordinating with Oman, and expect the US blockade to be fully lifted within 30 days.
The value of the frozen assets is also a point of contention. While international reports often cite a $6 billion figure related to funds transferred from South Korea to Qatar in 2023, Iranian officials have claimed the total is closer to $12 billion. An Iranian delegation, including the country's central bank chief, is in Doha to negotiate these financial terms, insisting that "without the release of a specific portion of Iran’s blocked assets... there will be no agreement," according to the Tasnim news agency.
Nuclear Program Remains Key Sticking Point
The most significant long-term challenge is Iran's nuclear program. The US framework reportedly requires Iran to give up its stockpile of highly enriched uranium, estimated at more than 400 kilograms. In contrast, Iran's Fars news agency has claimed the initial memorandum includes "no commitments... regarding handing over nuclear stockpiles, removing equipment, [or] closing facilities."
This divergence extends to the highest levels of government. Israeli Prime Minister Benjamin Netanyahu said he and President Trump agreed that any final deal "must eliminate the nuclear threat entirely," which he defined as "dismantling Iran's uranium enrichment facilities." This hardline stance contrasts with Iranian assertions that the nuclear file will only be discussed after the initial memorandum is signed.
The potential agreement also touches on broader regional conflicts. Iranian sources claim the deal would mandate an "end to fighting on all fronts, including in Lebanon." Yet, President Trump reportedly affirmed Israel's right to "maintain freedom of action against threats on all fronts," signaling another area where the details of a comprehensive peace remain unresolved. A successful agreement could bring significant relief to global energy markets by de-risking a major geopolitical flashpoint, but the path to a lasting deal is fraught with deeply entrenched disagreements.
This article is for informational purposes only and does not constitute investment advice.
[1] Report: US and Iran reach understanding on Iran's frozen assets, agreement may be announced tomorrow[2] What’s in the proposed deal that could end the US-Iran conflict?[3] Iran delegation in Qatar seeks deal on frozen assets and Hormuz blockade[4] Possible Iran-US deal: What we know[5] US-Iran peace deal: Tehran 'will surrender uranium stockpile'
