Hormuz Reopens, But A $300-Billion Question Remains: What The US-Iran Deal Leaves Unclear
Hormuz Reopens, But A $300-Billion Question Remains: What The US-Iran Deal Leaves Unclear Published By, Last Updated: June 18, 2026, 07:40 IST The US-Iran peace
Hormuz Reopens, But A $300-Billion Question Remains: What The US-Iran Deal Leaves Unclear Published By, Last Updated: June 18, 2026, 07:40 IST The US-Iran peace deal halts hostilities and reopens a vital shipping route, but the most contentious issues have merely been pushed into a high-stakes 60-day negotiating window. Rapid Read The US-Iran MoU has reopened the Strait of Hormuz and extended the ceasefire, but it leaves the most difficult questions unresolved. (AI-generated image) The US-Iran memorandum of understanding announced on Wednesday has reopened the Strait of Hormuz and extended the ceasefire, but it leaves the most difficult questions — from Iran’s nuclear programme and missile capabilities to its support for regional groups — unresolved. The agreement also raises a politically sensitive question over a proposed reconstruction plan worth at least $300 billion, even as US President Donald Trump insists Washington will not give Iran any money. Trump presented the memorandum as a major American victory during a lengthy press conference at the G7 summit in France. The United States and Iran later confirmed that it had been signed electronically on Wednesday and had entered into effect. However, details provided by US officials during a call with reporters suggest that the document is primarily an interim arrangement. It stops the immediate fighting, reopens the vital maritime route and gives the two sides 60 days to negotiate a broader agreement. What Has The US-Iran Memorandum Achieved? The most immediate outcome is the reopening of the Strait of Hormuz, a key shipping route that had become central to the conflict. The memorandum also extends the cessation of hostilities and sets out a 60-day negotiating period during which Washington and Tehran will try to reach a final nuclear agreement and settle other disputes. The negotiations are due to begin after the scheduled signing on Friday in Geneva. The document allows the 60-day period to be extended if the two sides need more time. That means the agreement does not itself constitute a comprehensive peace settlement. Instead, it creates a framework for negotiations on issues that the United States and Iran have not yet resolved.
Why Does The Nuclear Issue Remain Unsettled? Trump has said the agreement ensures that Iran will never buy, develop or produce a nuclear weapon. But according to the text read aloud by US officials, the memorandum does not yet provide the detailed terms needed to guarantee that outcome. For now, Iran has agreed to “downblending" its stockpile of highly enriched uranium under the supervision of the International Atomic Energy Agency. A senior US official described that commitment as a “significant concession" by Tehran. However, the technical details have not yet been finalised. The two sides still need to determine how the downblending will be carried out and establish a timeline for the process during the 60-day negotiations. The limited timeframe makes the task particularly difficult. The Obama administration took around 20 months to negotiate the original Iran nuclear deal reached in 2015. The Trump administration is now seeking to secure a lasting nuclear agreement in just two months. The provision allowing an extension suggests both governments recognise that the talks may take longer. What Is The $300-Billion Question? The reconstruction clause could become one of the most controversial parts of the memorandum. Trump has repeatedly said that the United States will not provide money to Iran. He has also criticised the Obama administration’s $1.7-billion payment to Tehran in 2016. The financial issue is important to Trump’s effort to present his Iran agreement as tougher and more favourable to the United States than the deal negotiated by former president Barack Obama. Yet the memorandum states that the United States will work “with regional partners to develop a definitive mutually agreed plan with at least USD $300 billion" for Iran’s reconstruction. A senior US official told BBC the agreement does not commit Washington to paying Iran a single cent. The wording, however, does not clearly explain how the reconstruction plan would be funded or whether the United States could eventually make any payment as part of a final settlement. It also does not identify which regional partners would contribute to the plan or how the proposed $300 billion would be raised and distributed.
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