SINGAPORE, June 15 (Reuters) – Oil prices slipped in early trading on Monday after U.S. President Donald Trump and Iran’s deputy foreign minister said they have reached a deal to halt the war and to resume traffic through the Strait of Hormuz.
Brent crude futures fell $3.51, or 4.02%, to $83.82 by 2203 GMT and U.S. West Texas Intermediate was at $80.95 a barrel, down $3.93, or 4.63%.
A senior Iranian official told Reuters a final draft of the memorandum of understanding with the U.S. covered a range of issues, from Tehran’s nuclear work to reopening the Strait of Hormuz and U.S. waivers on oil sanctions, with a final deal to be discussed in the 60 days following agreement by the two sides which could be as early as this coming Friday.
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The Iranian official said the draft memorandum included the following:
STRAIT OF HORMUZ:
* Iran immediately reopens the Strait of Hormuz to all commercial vessels, while the U.S. lifts its naval blockade on Iranian ports. The lifting of the U.S. blockade would begin immediately after the memorandum is signed and be completed within 30 days.
FINANCIAL:
* The U.S. agrees not to impose any new sanctions on Iran until a final deal is reached.29dk2902l
* Following a final agreement, all U.S. and U.N. sanctions on Iran would be lifted according to an agreed timetable.
* The U.S. will waive oil sanctions on Iran for a specified period, allowing Tehran to sell oil and receive revenue.
* The U.S. agrees to release $25 billion of Iran’s frozen assets, including via direct cash transfers, cooperation among regional countries, and financial credit lines.
* Washington, in coordination with its regional allies, would prepare a reconstruction and development plan for Iran, to be negotiated and agreed with Tehran within 60 days.
NUCLEAR:
* Tehran agrees that it will neither produce nor acquire nuclear weapons.
* Pending a final agreement, Iran would maintain the current status of its nuclear programme, refraining from further uranium enrichment and expansion of nuclear facilities.
* The United States agrees to allow Iran to dilute its stockpile of highly enriched uranium on Iranian soil under a future comprehensive agreement.
* Iran’s nuclear programme, uranium enrichment activities and mechanisms for handling its stockpile of highly enriched uranium would be negotiated within 60 days of the memorandum and addressed in a final agreement.
(Reporting by Parisa Hafezi, Editing by Elaine Hardcastle)
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