President Trump touts progress on Iran deal at G7 summit
President Donald Trump emphasized the Iran deal at the G7 summit, raising the possibility of sanctions relief and reopening of shipping lanes.
The deal President Donald Trump struck with Iran this week marks the United States’ second attempt this century to prevent the Middle Eastern country from developing nuclear weapons.
President Trump and Iranian President Masoud Pezeshkian signed a preliminary agreement known as the Memorandum of Understanding to End the Fighting Between the two countries on June 17, nearly four months after the United States and Israel first launched a joint strike to dismantle Iran’s nuclear capabilities.
The memorandum promises Iran to refrain from acquiring or developing nuclear weapons in exchange for sanctions relief and a $300 billion recovery plan. Both sides agree to reopen the Strait of Hormuz.
In 2015, then-President Barack Obama’s administration negotiated the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, signed by Iran, the United States, China, France, Germany, Russia, and the United Kingdom.
This agreement imposed restrictions on Iran’s nuclear program to prevent it from developing nuclear weapons. In return, Iran received a gradual relaxation of international economic sanctions.
Trump withdrew from the JCPOA agreement in 2018 during his first term as president. The United States has reimposed “maximum pressure” sanctions targeting Iran’s vital energy, petrochemical and financial sectors.
So, how is President Trump’s 14-point MOU different from President Obama’s agreement?
It’s difficult to compare a memo to a completed contract, but here are some key differences.
Relief/reconstruction money
President Trump’s deal commits the United States to providing sanctions relief and $300 billion to regional partners and Iran for its reconstruction and economic development. It also pledges to end all types of sanctions, including Iran’s oil and petrochemical exports and UN Security Council resolutions.
The memorandum also specifies that the United States will grant the necessary licenses, exemptions, and permissions for financial transactions related to the fund. The implementation mechanism for the plan will be part of the final agreement and is expected to be agreed within 60 days.
President Obama’s deal did not include a recovery fund, but did include sanctions relief and a $1.7 billion cash transfer to resolve decades of arbitration claims between the United States and Iran.
Strait of Hormuz
Under the memorandum, Iran agreed to reopen the Strait of Hormuz, which carried about 20% of the world’s oil supplies before the war. The country’s blockade has restricted traffic through the strait, raising fuel prices and threatening the global economy.
The United States, which has imposed its own retaliatory naval blockade, agrees in the memorandum to completely remove it within 30 days, along with “any interference or interference with the Islamic Republic of Iran.”
Meanwhile, Iran agreed to return shipping traffic to pre-war levels.
The Strait of Hormuz was not included in the 2015 agreement because it was not closed at the time.
nuclear weapons
The 2015 agreement signed by President Obama stated that “under no circumstances will Iran seek, develop, or acquire any nuclear weapons.” Iran also promised to open its facilities to extensive international inspection in exchange for lifting sanctions and unfreezing foreign assets. The deal aims to limit Iran’s nuclear program, but does not stop it completely. This allowed Iran to store small amounts of monitored low-enriched uranium, but restricted and limited Iran’s ability to acquire nuclear weapons. It also called on Iran to keep its uranium enrichment level at 3.67%, well below the 90% enrichment needed to make bombs.
The deal included a “sunset clause” – a key date by which restrictions on Iran’s capabilities would expire and the country could resume or increase production.
President Trump’s MOU, like previous agreements, states that Iran “will not procure or develop nuclear weapons.” However, it does not include details such as whether or when Iran will be allowed to enrich uranium. The Trump administration is instead aiming for permanent restrictions.
Swapna Venugopal Ramaswamy is USA TODAY’s White House correspondent. You can follow her at X @SwapnaVenugopal.
