US-Iran Peace Agreement: Details on Nuclear Terms, Oil Markets, and Sanctions Relief

U.S. President Donald Trump announced a preliminary agreement with Iran to end the ongoing war, with a formal signing scheduled for Friday in Geneva. The deal includes reopening the Strait of Hormuz and allowing IAEA inspectors to oversee the destruction of highly enriched uranium, according to Trump and Vice President JD Vance.

How will the agreement impact the Strait of Hormuz and global oil markets?

The Strait of Hormuz will be fully reopened to maritime traffic by Friday. President Trump announced on Monday that ships have already begun moving through the vital oil corridor, many carrying crude oil. This follows his Sunday order to immediately lift the U.S. naval blockade on Iranian ports.

Iranian media outlets reported on Monday evening that three oil tankers and two cargo ships successfully crossed the zone previously under U.S. naval blockade. While the agreement restores the status quo regarding Iranian control of the strait, shipping companies noted that full-scale navigation depends on confirmed safety guarantees.

The agreement effectively extends the current ceasefire for 60 days. This window is intended to provide stability before highly sensitive negotiations regarding the Iranian nuclear program begin.

What are the core terms of the nuclear inspection deal?

The agreement mandates that International Atomic Energy Agency (IAEA) inspectors return to Iran to monitor nuclear activities. Vice President JD Vance told NBC News that a primary pillar of the deal is for the IAEA and the United States to assist Iran in destroying its stockpile of highly enriched uranium.

According to Vance, the prevention of a nuclear-armed Iran is “clearly stated” in the memorandum of understanding. During an interview with Fox News, Vance added that the absence of a nuclear weapon is a built-in component of the agreement and that the U.S. will have the ability to verify compliance.

However, some details remain vague. Speaking to CNN, Vance described the current signed memorandum as a “very general” document consisting of only about one and a half pages. Technical talks regarding the specifics of the nuclear program are expected to commence this week.

How much financial relief is being offered to Iran?

Financial incentives and sanctions relief are central to the transition from conflict to negotiation. The scale of economic movement involves both immediate asset releases and long-term investment funds:

• Immediate Asset Release: According to the Iranian news agency Mehr, the United States will release $12 billion in frozen assets before formal nuclear negotiations begin.
• Reconstruction Fund: The Financial Times reported on Monday that the Trump administration is considering the creation of a $300 billion fund to encourage companies to invest in Iran’s reconstruction.
• Performance-Based Disbursement: A senior Trump administration official told reporters via Agence France-Presse (AFP) that any release of funds or easing of sanctions is strictly “tied to performance” and Iran’s adherence to its commitments.

Iranian Foreign Ministry spokesperson Ismail Baghaei stated that Washington has committed to releasing frozen funds and compensating Tehran for war damages. Any further easing of sanctions remains contingent on Iran meeting its obligations under the agreement.

Why do Israeli and Iranian leaders hold conflicting views on the peace?

The agreement has drawn starkly different interpretations from the primary regional actors. While Iranian officials frame the deal as a diplomatic success, Israeli leadership maintains a stance of continued military readiness.

The Iranian Perspective:
Iranian President Masoud Pezeshkian stated that nearly all members of the Shura Council approved the memorandum to test U.S. sincerity regarding Iranian rights. Deputy Foreign Minister Kazem Gharib Abadi described the framework as a “victory for Iran” during a call with Iranian state television. He noted that Qatari mediators facilitated the deal through 14 to 15 hours of intensive discussions in Tehran.

The Israeli Perspective:
Israeli Prime Minister Benjamin Netanyahu stated that while the deal may have saved Israel from “total annihilation,” the “battle is not over.” Netanyahu confirmed that Israeli forces will remain in security zones in Lebanon, Syria, and Gaza as long as necessary. He emphasized that Israel will retain the right to respond to attacks and will not allow Iran to acquire nuclear weapons, regardless of the agreement.

The conflict, which began on February 28, resulted in the deaths of at least 7,000 people—primarily in Iran and Lebanon—and 13 American soldiers, according to reported figures.

Frequently Asked Questions

When will the official signing take place?

The formal signing ceremony is scheduled to be held in Geneva this coming Friday.

Will sanctions be lifted immediately?

No. According to President Trump, sanctions relief and the release of assets are contingent upon Iran’s compliance with the terms of the agreement.

Is the ceasefire permanent?

The current agreement extends the existing ceasefire for 60 days, providing a window for technical negotiations.

Who mediated the deal?

Pakistan and Qatar played key roles in the mediation process, with Pakistani Prime Minister Shehbaz Sharif announcing the immediate end of military operations on Sunday.

What do you think about this diplomatic breakthrough? Will the proposed $300 billion reconstruction fund be enough to stabilize the region? Let us know your thoughts in the comments below or subscribe to our newsletter for more breaking geopolitical analysis.