Key Highlights

  • Hormuz reopening: Draft accord calls for the strait to reopen without toll fees within 30 days.
  • Sanctions relief: A 60-day waiver on Iranian crude sales is proposed, with scope for expansion.
  • Blockade lifted: US naval blockade and troop presence near Iran's periphery would be withdrawn under the draft.
  • Approval pending: Iranian officials say the 14-point memorandum still needs sign-off from senior leadership.

A draft memorandum of understanding between Iran and the United States would reopen the Strait of Hormuz and lift oil sanctions on Tehran, Iranian state media reported on Friday. According to the report, the document includes a US commitment to lift sanctions, withdraw forces from Iran's periphery, end the naval blockade and unfreeze Iranian assets, in exchange for Iran reopening the strait to commercial traffic.

The proposed terms specify that the Strait of Hormuz, which has been effectively closed for weeks amid the conflict, would reopen without toll charges and that shipping traffic would be restored to pre-war levels within 30 days. The US naval blockade currently in place would be lifted as part of the same arrangement.

On sanctions, the draft reportedly provides for an initial 60-day waiver allowing Iran to resume crude oil exports. Further sanctions relief could follow if Iran meets its commitments and demonstrates good faith in subsequent negotiations, though the timing of any additional steps has not been fixed.

The memorandum is also said to extend a ceasefire by 60 days, covering related hostilities in Lebanon, while leaving Iran's nuclear program for a separate, more detailed agreement. A framework addressing Iran's enriched uranium stockpiles is included in the draft, with implementation contingent on a follow-up accord.

Despite the reported terms, Iranian officials have not confirmed that a final agreement has been reached. A foreign ministry spokesperson described reports of a deal as speculation, saying the text still requires finalization by relevant authorities and that key issues, including Hormuz access and frozen funds, remain under discussion.

Reports indicate the draft has been approved at senior levels within the Iranian government, though confirmation from the country's supreme leader has not yet been secured. A signing ceremony involving US officials has been discussed as a possibility for the coming days, with preparations reportedly underway for a venue in Europe.

Global oil benchmarks fell sharply following news of the draft terms, with crude prices retreating to their lowest levels in nearly two months on expectations that a resolution would ease supply disruptions through the Gulf chokepoint. Roughly one-fifth of global energy shipments normally transit the Strait of Hormuz, and the route has been a central flashpoint of the conflict, with both sides reporting incidents involving vessels and aircraft in the waterway in recent days.

Equity markets also responded to the development, with broad gains recorded across major indices as investors weighed the prospect of reduced geopolitical risk in the region. Energy-sector shares underperformed amid the move in crude prices, while cyclical sectors led the advance.

US officials have said commercial vessels continue to transit the strait under established safe pathways, even as Iranian state media has issued conflicting statements regarding the security situation in the waterway during the period leading up to the draft agreement's disclosure.