US and Iran near deal that could reopen Strait of Hormuz
The United States believes a deal with Iran is within reach that would reopen the Strait of Hormuz and end the war in the Middle East, according to the US news site Axios. Multiple sources say a one-page memo is circulating containing proposals "to end the war and set a framework for more detailed nuclear negotiations."
Under the terms being discussed, Iran would suspend its nuclear enrichment programme, the US would lift its sanctions and release billions of euros in frozen Iranian funds, and both sides would end their blockade at Hormuz. Nothing has been finalised, Axios stressed, but according to its sources the two sides have never been this close to a deal.
New compromises are on the table: the temporary suspension of uranium enrichment, for instance, would last twelve years. Iran had previously proposed a five-year pause, while the US had demanded twenty years. Two sources have also confirmed that Iran would agree to remove highly enriched uranium from the country, described as "a key priority for the US that Iran had so far rejected."
In its current form, the agreement would bring the war to an end while launching a 30-day negotiation period to finalise the details. Two sources told Axios that those talks could take place in Islamabad or Geneva. Washington is said to be expecting a response from Iran within 48 hours.
Oil prices fall
If the two sides will agree on a deal, remains to be seen. It is not the first time that president Donald Trump has claimed a deal is imminent. He has also threatened a severe military escalation of the conflict on several occasions. US officials also believe Iranian leadership is divided, which would make it hard to reach a consensus.
The prospect of a deal sent oil prices sharply lower. The price of a barrel of Brent crude fell below the 100-dollar mark on Wednesday. North Sea crude, the European benchmark, was down 9.2 per cent in afternoon trading to 99.79 dollars per barrel.
PHOTO © AFP
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