Oil & Energy
Trump Authorizes Hormuz Strait Reopening, Immediate End to US Naval Blockade on Iran Ports
US President Donald Trump said he was authorizing the toll-free opening of the Strait of Hormuz in a social media post on Sunday, when in fact it was Iran who closed the strait and introduced payments for safe passage of vessels.Trump also called for the "immediate removal" of the US Naval blockade, while an Iranian official said that it had agreed with the US that the latter would have up to 30 days to end the blockade."The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!," he said.The final draft of the memorandum of understanding between the US and Iran contains provisions regarding the reopening of the Strait of Hormuz, others on Iran's nuclear work along with waivers on US oil sanctions, a senior Iranian official told Reuters, according to an article published on Sunday.On the Strait of Hormuz, the official said the draft calls on Iran to immediately reopen the strait to all commercial shipping and for the US to end its naval blockade on Iranian ports.The article says that the US would begin lifting its blockade and complete this within 30 days. It did not elaborate on what this means and why something that would appear to be achievable instantaneously, would need time.It said that the US has agreed not to impose new sanctions on Iran until a final deal is reached, something the draft provides 60 a day period to achieve, following the signing of the draft scheduled for this Friday in Switzerland, according to other media reports.Once a full and final agreement is in place, all US and United Nations sanctions on Iran would begin to be lifted, according to a pre-established timetable.It also said that the U.S. will waive oil sanctions on Iran for a specified time, enabling Tehran to sell and ship its crude in the interim. The article did not say how the time-limited lifting of sanctions on oil can be reconciled with the earlier idea of a timetable for the permanent lifting of sanctions.Another provision is that the US would unfreeze $25 billion of frozen Iranian assets, returning some via direct cash transfers and cooperation with countries in the Middle East or through financial credit lines.The US would draw up a reconstruction and development plan for Iran which would be negotiated and agreed with Tehran within 60 days. It was not clear whether this was specifically related to repairs from damage by US strikes, which Iran previously said it would demand reparations for.Regarding Iran's nuclear ambitions, the draft says that Tehran agrees to neither produce or acquire nuclear weapons.Iran would "maintain the current status of its nuclear programme," the Reuters article said, refraining from any more uranium enrichment or the expansion of nuclear facilities for such work.The article said that the US would "allow Iran to dilute its stockpile of highly enriched uranium" on Iranian soil, once a future comprehensive agreement has been established.Finally, the senior official said that Iran's nuclear programme, enrichment work and procedures for handling its stockpile of highly enriched uranium would need to be negotiated within 60 days of the signing of the memorandum with decisions to be included in the final peace agreement.