The United States is expected to allocate $300 billion (equivalent to £223 billion) for the reconstruction of Iran as part of a new agreement negotiated by President Donald Trump with Tehran. The deal, set to be officially signed in Switzerland, involves the full reopening of the Strait of Hormuz and has already been informally agreed upon. President Trump confirmed the completion of the deal and the partial reopening of the strait during his arrival at the G7 summit in France.
Under the terms of the agreement, all American and United Nations sanctions on Tehran will be lifted once a final resolution regarding Iran’s nuclear program is achieved. Leaked versions of an interim agreement align closely with the official document, outlining the provisions to end the conflict.
Iran will be permitted to freely sell its oil without restrictions as part of the agreement, surpassing the terms of the 2015 Iran nuclear deal, which President Trump previously criticized. The agreement is expected to face significant scrutiny in Washington as the U.S. and Iran embark on 60 days of negotiations to finalize the agreement’s details.
The accord also signals a setback for Israeli Prime Minister Benjamin Netanyahu, who joined U.S. forces in military actions at the start of the conflict. The deal mandates an immediate cessation of hostilities between Israel and the Iranian-backed militia Hezbollah in Lebanon.
The agreement aims to return the region to its pre-war conditions with peace and unrestricted passage through the Strait of Hormuz. However, aspects like the $300 billion reconstruction fund, sanctions relief, and asset unblocking are contingent upon the progress of further negotiations on Iran’s nuclear activities.
Recent leaks from Al Arabiya and Bloomberg provide insight into the agreement, which includes provisions for the U.S. to lift its blockade on Iranian ports and restore pre-war maritime activities in the strait. Although the removal of sanctions is subject to future negotiations, waivers on Iranian oil sales will be granted immediately, diminishing a key bargaining chip for the U.S.
The interim deal sets a 60-day window for negotiations on Iran’s nuclear program, aiming to prevent the country from developing nuclear weapons. The agreement also outlines financial support for Iran’s reconstruction post-conflict, with Gulf Arab nations pledging investments.
President Trump’s objectives for the conflict, which included curbing Iran’s nuclear program and support for proxy groups, have not been fully achieved under the interim deal. The negotiations have highlighted tensions between Mr. Netanyahu and President Trump, impacting Israel’s domestic politics and international relations.
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