The U.S. is reportedly close to finalizing a memorandum of understanding (MOU) with Iran, which aims to terminate the ongoing war and lay the foundation for extensive nuclear negotiations.
The Trump administration is in the final stages of negotiating a 14-point, one-page MOU with Iran. The agreement, being facilitated by President Donald Trump‘s representatives Steve Witkoff and Jared Kushner, is expected to announce an end to the war and initiate a 30-day period for detailed discussions on opening the strait, limiting Iran’s nuclear program, and lifting U.S. sanctions, Axios reported on Wednesday.
The talks could potentially occur in Islamabad or Geneva. The MOU also proposes a gradual lifting of Iran’s shipping restrictions and the U.S. naval blockade over the 30-day period. However, if the negotiations fail, U.S. forces could reinstate the blockade or restart military action.
According to the report, the duration of the uranium enrichment moratorium is still under negotiation, with sources suggesting it could be at least 12 years. The MOU’s terms would be contingent on a final agreement, leaving room for a possible resurgence of war or an extended stalemate.
White House did not immediately respond to Benzinga‘s request for comments.
Oil Dips As Trump Pauses ‘Project Freedom’
This development comes in the wake of Trump’s decision to temporarily halt ‘Project Freedom’, a military-backed operation designed to escort commercial ships through the Strait of Hormuz. According to Axios, the President decided on the same amid progress in peace talks.
However, Secretary of State Marco Rubio, during White House press briefing on Tuesday, said that a final agreement won’t come quickly, stressing that a complex deal requires clear terms on what each side is willing to negotiate and concede upfront to make talks worthwhile.
At the time of writing, Brent crude oil price was trading 7.13% lower at $102.04 per barrel, while the S&P 500 futures edged 51 points higher to 7,338.25.
Furthermore, the timing of the MOU negotiations coincides with a strategic meeting between China and Iran, just days before Trump visits Beijing. According to experts, this meeting was seen as Iran’s attempt to show the U.S. that it is not isolated and has options, thereby strengthening its bargaining position in the standoff with Washington.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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