Vance Says 60-Day Iran MoU Period Begins as Iran, Oman, GCC Plan Hormuz Security Framework
About 12.5 million barrels of oil moved through the Strait of Hormuz on Wednesday night, the highest level since the conflict began, as Iran and the US continued implementing the early stages of their agreement, Vice President J D Vance said Thursday.Vance made the remarks about the newly signed Memorandum of Understanding between the US and Iran during a press briefing broadcast on the White House's social media.Looking beyond the initial 60-day agreement, Vance said Oman, Iran and the Gulf Cooperation Council will jointly design a long-term security framework for the strait."The Omanis, the Iranians, and the Gulf Coast Coalition together will figure out a proper security framework for the straits in the future," Vance said, adding that the goal is to ensure the waterway is "never used as a choke point for the global economy ever again."Vance also reiterated the administration's opposition to charging ships for passage through the strategic waterway."We believe international waterways should be free of tolls," he said, adding that toll-free transit is guaranteed during the first 60 days and must remain part of any final agreement.Regarding oil prices, Vance said they were declining. "Oil prices are down nearly at their level from the pre-war conflict," Vance said, adding that gasoline prices have fallen below $4 per gallon while the US Central Command has allowed over a dozen vessels to transit the blockade without attacks in the strait.On the implementation phase of the MoU, Vance said, "I would say the 60-day period officially started today [Thursday]."Trump, in his presidential address at the G7 Summit in France on Wednesday, had said that the 60-day window for technical discussions on the removal of all enriched material stockpiles in Iran will begin "immediately."Vance in Thursday's briefing said Iran has upheld its initial commitments under the agreement. "The Iranians, for the second night in a row, did not shoot at any ships in the Strait of Hormuz. So far, they are honoring their end of the commitment," he said."Centcom has allowed north of a dozen ships to go through our naval blockade," Vance said, adding that the US has begun implementing its obligations under the accord.Vance said the administration structured the agreement around reopening the Strait of Hormuz and restoring energy flows. "We're going to lift the blockade, we're going to allow you to sell some of your oil, and they're going to open the Strait of Hormuz," he said, adding that the process is already underway.Iran's nuclear infrastructure remains dismantled, according to Vance. "Their nuclear program has been completely destroyed," he said, adding that Tehran currently lacks the capacity to build a nuclear weapon and must prove it will not attempt to rebuild that capability.The vice president said technical negotiations could begin in Switzerland as soon as this weekend. The talks will focus on inspections, enriched uranium stockpiles and verification measures tied to a permanent agreement.Vance stressed that compliance, not promises, will determine whether Iran receives economic benefits. "We're about verification," he said. "If they do the things that they have promised to do, they have promised not to enrich, they have promised that they would allow inspectors in to destroy that highly enriched stockpile..."He added that under the agreement, this would require stringent oversight. "That would mean a real inspections regime, that would mean a real enforcement regime.""They don't get $1 of unfrozen assets until they actually perform under the deal," Vance said, stressing that Iran will not gain access to frozen assets unless it fulfills its obligations.Vance reiterated that Tehran would not receive meaningful benefits without demonstrating compliance."They don't get anything unless they change their behavior," he said.Additionally, the vice president also said the Gulf countries were in favor of the deal."The Gulf Coast coalition loves this deal because they think that it makes Iran weaker," Vance said, adding that regional governments support the agreement because it weakens Tehran rather than empowering it, unlike the 2015 accord during the Obama administration.If Iran funds terrorism, blocks inspections or attempts to restart its nuclear activities, the US retains multiple forms of leverage, according to Vance."If they don't change, we still got all the cards," he said.