US, Iran Release Draft Peace MOU Ahead of June 19 Signing, Including Hormuz Reopening and Sanctions Relief

The US and Iran are set to sign a memorandum of understanding in Switzerland on June 19 aimed at ending the war, with a draft of the agreement now made public.

A 14-point draft of the MOU obtained by Bloomberg on June 16 shows the two countries would enter a full ceasefire immediately upon signing. They would then hold 60 days of negotiations on a final peace treaty and nuclear agreement.

The draft includes reopening the Strait of Hormuz, allowing exports of Iranian oil, lifting sanctions on Iran and establishing a $300 billion reconstruction fund. Those provisions are drawing intense market attention.

The 14 articles also include a full ceasefire and end to hostilities, mutual non-interference in domestic affairs, 60 days of final negotiations, a freeze on Iran's nuclear program, a halt to additional US sanctions and military buildups, the release of frozen assets, the creation of an implementation monitoring body and United Nations Security Council approval of a final agreement.

Under the draft, the US would lift its maritime blockade of Iran immediately after the agreement is signed and restore traffic through the Strait of Hormuz to prewar levels within 30 days. Iran would also normalize commercial shipping within 30 days after mine-clearing operations and other measures.

The US Treasury Department would immediately issue waivers allowing exports of Iranian crude oil and petrochemical products. If the two sides reach a final agreement, the US would then gradually lift sanctions on Iran, including those tied to United Nations Security Council resolutions, and release frozen assets in stages.

On the nuclear issue, Iran reaffirmed its existing position that it would not develop nuclear weapons. Key issues, including how enriched uranium would be handled and the future scope of Iran's nuclear program, would be decided during the 60-day negotiations.