U.S. and Iran Near Agreement to Reopen Strait of Hormuz

Huo Xing Finance reports that on May 24, The Washington Post reported that the United States and Iran have agreed on a framework for a memorandum of understanding, which, once signed, would fully restore shipping in the Strait of Hormuz within 30 days. The report cited an anonymous senior U.S. government official stating that the U.S. and Iran have developed a “framework” for the memorandum of understanding, including a 60-day extension of the ceasefire to allow both sides to reach a “final agreement” on permanently ending the war, during which the Strait of Hormuz would be cleared of mines and reopened. The official added that the memorandum includes a “commitment” that Iran will not acquire nuclear weapons, and that over the next two months, the U.S. and Iran will discuss the “mechanisms” to implement this commitment. However, neither side signed any agreement on May 24. An anonymous diplomatic source familiar with the situation told The Washington Post that upon signing the memorandum, Iran would immediately reopen the Strait of Hormuz and take measures within 30 days to restore the waterway to its pre-war condition. Additionally, Iran, the United States, and their allies would announce an immediate halt to all military operations on all fronts, including in Lebanon. The report also cited an anonymous Iranian official stating that the reopening of the Strait of Hormuz would occur in phases: in the first phase, the U.S. would unfreeze $12 billion in Iranian assets, mine-clearing operations in the Strait would commence, and U.S. blockades would be lifted. However, the Iranian official noted that the memorandum does not include a nuclear agreement but only commits to negotiating nuclear issues at a later date, with further details expected to be released on May 25.