Photo: AFP
Washington: The United States has said that commercial vessels will be allowed to pass through the Strait of Hormuz without toll charges under a peace agreement signed with Iran, while stressing that Tehran must meet its commitments before receiving economic benefits.
A senior Trump administration official said the proposed agreement could include a reconstruction fund of up to $300 billion for Iran, but the release of any financial assistance would depend on Iran’s performance in fulfilling the terms of the deal, AFP reported.
US President Donald Trump, Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Ghalibaf reportedly signed a memorandum of understanding electronically on Sunday. A US official said Trump chose to personally sign the document to demonstrate his commitment to the process.
Vance acknowledged that the preliminary agreement was broad and left several difficult issues unresolved, particularly Iran’s nuclear programme. He said the MoU was only a general framework and that detailed negotiations would follow.
He added that US and international nuclear inspectors would be allowed to return to Iran as part of efforts to dismantle its enriched uranium stockpile. Vance is expected to lead technical discussions this week, followed by a formal signing ceremony in Geneva, Switzerland.
Trump said the agreement’s text was expected to be released after the G7 summit, while US officials indicated that it would be made public within 24 to 48 hours. The signing begins a 60-day period during which Washington and Tehran will attempt to negotiate a comprehensive peace agreement.
US officials said nuclear issues would be given priority during upcoming talks. However, reopening the Strait of Hormuz has emerged as an immediate concern due to its impact on global oil prices and energy markets.
Vance said there was an understanding with Iran to keep the strategic waterway open for shipping without tolls in the long term, with technical negotiations expected to address the details. Trump said the strait would be fully reopened from Friday, while noting that efforts were still underway to ensure it was cleared of mines.
The US administration said shipping activity was expected to return to pre-conflict levels within weeks, although traffic had already increased significantly.
Iran’s foreign ministry, however, clarified that the agreement would allow Tehran to collect maritime service charges from vessels using the Strait of Hormuz, rather than imposing direct tolls.