US-Iran Agreement Nears, Signature Expected Within Days

The US and Iran are close to an agreement aimed at easing tensions, and it could be signed within days, a senior US official said.

Reuters reported on June 12 that the official said the negotiating teams had reached a very favorable position, though a final agreement had not yet been completed. The two sides, however, are very close to a deal.

The draft agreement is intended to achieve one of President Donald Trump’s key objectives.

The memorandum of understanding includes provisions to reopen the Strait of Hormuz and lift the US blockade of Iranian ports, the official said.

Iran’s highly enriched uranium would be destroyed inside the country before being transferred abroad, according to Reuters.

“Iran will receive no benefit simply for signing the memorandum of understanding or participating in the talks,” the official said.

It would become eligible for economic compensation only after fulfilling the obligations set out in the agreement. If Iran hands over nuclear material, it would receive corresponding compensation. Additional compensation would follow if it dismantles its nuclear program and nuclear facilities.

Trump recently said a US-Iran agreement was effectively in its final stage and could be signed this weekend or early next week.

Iran’s government, however, has maintained that it has not yet made a final decision. The Iranian Foreign Ministry said relevant authorities are reviewing the matter and that an official announcement would be made once a final conclusion is reached.

Markets are watching whether a deal is reached, with investors expecting any agreement to ease Middle East geopolitical risks and affect crude oil prices, gold and sentiment toward global risk assets.