U.S.-Iran draft memorandum of understanding grants Iran authority over the Strait of Hormuz, assisting in unfreezing $12 billion in assets 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 a vessel's cargo is deemed threatening or the actual beneficiary is a hostile entity to Iran, the vessel will not be considered a civilian commercial ship and will be denied passage.

Iran has the authority to designate navigation routes, set transit fees, maintain channel security, and address related environmental damage issues. The draft indicates that the U.S. has committed to assisting Iran in fully unfreezing $12 billion in frozen assets within 60 days, with funds transferable to an Iranian-designated bank and usable without restrictions. Currently, the draft is only an informal consensus and still requires review, negotiation, and revision by all parties.