U.S.-Iran Draft Memorandum Gives Iran Authority over Strait of Hormuz, with 12 Billion USD in Assets to Be Unfrozen Within 60 Days

Odaily reported that an unofficial draft memorandum stipulates that Iran has the exclusive right to determine the nature of vessels transiting the Strait of Hormuz. If the cargo onboard a vessel is deemed a threat, or if the actual beneficiary is a hostile party to Iran, the vessel will not be considered a civilian merchant ship and will be banned from passage.

Iran has the authority to designate navigation routes, set transit fees, maintain waterway safety, and address related environmental damages. The draft indicates that the U.S. has pledged to assist Iran in fully unfreezing $12 billion in frozen assets within 60 days. The funds can be transferred to Iran’s designated banks and used without restrictions. Currently, this draft is only an unofficial consensus and still requires review, negotiation, and amendments from all parties.