U.S. officials are closing in on an agreement with Iran that could lead to the reopening of the Strait of Hormuz while the two countries negotiate President Trump’s demands for an end to Iran’s nuclear program, according to three U.S. officials with knowledge of the discussions,
The New York Times reports.
The emerging “memorandum of understanding” still needs approval from President Trump, and Iran has not yet confirmed any commitments.
Vice President JD Vance told reporters on Thursday that the two sides were “very close” to an agreement, but were still negotiating over the precise language and larger questions about Iran’s nuclear program.
“It’s hard to say exactly when or if the president is going to sign” the agreement, he said.
He added: “I can’t guarantee that we’re going to get there.”
Should it come together, the development would offer Mr. Trump a way out of a war that has pushed up gas prices and grown deeply unpopular at home. It would also create a structure for Iran to regain access to its own assets provided it complies with U.S. demands. And Iran would eventually have a pathway to get billions of dollars in oil revenue flowing again at a moment when its economy is on the precipice.
Along the way, the agreement would extend the existing “cease-fire,” which has shown signs of cracking in recent days as the United States has conducted what it calls “defensive strikes” on missile and drone bases that threaten American ships and planes, and the Iranians have retaliated.
White House officials provided only a vague outline of what the negotiating teams had agreed to — at least preliminarily. But under the framework, the Iranians would see economic relief phased in as progress is made in the negotiations and a substantive deal is reached.
Mr. Trump and his aides have said a key to any deal would be that Iran disavows any intention of acquiring a nuclear weapon. Iran has made that promise many times before, including in the opening paragraphs of the 2015 agreement it made with Obama administration. The Trump team is also insisting on the Iranians agreeing to dispose of their near-bomb-grade uranium, two of the officials said. Experts say that Iran’s current stockpile of uranium enriched to 60 percent — just below bomb grade — could be turned into the fuel for 11 or 12 bombs fairly quickly.
But the method of how the fuel would be recovered from the rubble of a June 2025 air attack by the United States, and whether it would be shipped out of the country or neutralized, would be deferred to later negotiations. That would leave it inside Iran for months and maybe far longer — along with another 10 or more tons of nuclear fuel enriched to lower levels.
Mr. Trump and his team have quietly lobbied the Gulf Arab states to underwrite Iran’s postwar reconstruction, contingent on the Iranians agreeing to acceptable terms. The Gulf countries have discussed a $300 billion investment fund to that end, one that the U.S. would not invest in itself. Many expect China also to move in, tightening its relationship with Iran. Because Beijing has ignored oil export sanctions against Iran, around 90 percent of Iran’s oil exports go to China.
Another measure under discussion would ease Iran’s economic strain by lifting the freeze on some Iranian funds held in Qatar, allowing the money to be spent on medicine and feedstock for Tehran. Qatar would then turn those items over to Iran, according to one of the officials.
For days now, Mr. Trump and his aides have been claiming a preliminary agreement was near. Then the administration received word from mediators on Wednesday night that Iran was comfortable with the latest version of the memorandum of understanding, one of the U.S. officials said.
Mr. Trump’s reaction was that he wanted to take a few days to consider it, the official said.
