What we know: $300 billion economic plan in the Iran deal
President Donald Trump defended his Iran deal after questions were raised about a proposed $300 billion economic development plan, sanctions relief and how the agreement would be enforced.Trump said the United States would not pay Iran directly, but acknowledged that part of the arrangement involves Iran accessing its frozen funds.”We have taken a lot of their money, and we have their money. We have taken them—it’s not our money, it’s their money—and we froze it. At a certain point in time, I guess we’re going to have to give it back,” Trump said.The 14-point memorandum of understanding (MOU), read to reporters by senior U.S. officials, outlined that the U.S. would work with Gulf-region partners on a plan of at least $300 billion for Iran’s reconstruction and economic development.The MOU also laid out that the U.S. would grant all licenses, waivers and permissions needed for the relevant financial transactions. The mechanism for carrying out that plan would still have to be finalized as part of a final deal that’s expected to be reached within 60 days.The $300 billion proposal is one of several economic provisions. The agreement included that the U.S. would “undertake to terminate” all types of sanctions against Iran, including United Nations Security Council (UNSC) resolutions, International Atomic Energy Agency (IAEA) Board of Governors resolutions and U.S. primary and secondary sanctions, on an agreed schedule as part of the final deal.It also said the Treasury Department would issue waivers for the export of Iranian crude oil, petroleum products and derivatives, along with associated services including banking transactions, insurance and transportation.The MOU further highlighted that frozen or restricted Iranian funds and assets would be made fully available for use upon implementation of the memorandum. The two sides would mutually agree on procedures for releasing those funds during negotiations.On the nuclear issue, the deal said Iran reaffirmed that it shall not procure or develop nuclear weapons. The document explained that the two sides would resolve the fate of Iran’s enriched nuclear material through a mutually agreed mechanism, with the minimum method being downblending on site under the supervision of the IAEA.The agreement is also designed to restart commercial traffic through the Strait of Hormuz immediately, with full restoration expected within 30 days. Iran is expected to remove technical and military obstacles, including mines in the Strait. Also included in the MOU, Iran cannot charge commercial vessels for safe passage during the 60-day memorandum period.But questions remain about what happens after that. The deal said Iran would hold talks with Oman and other Persian Gulf states over the future administration and maritime services in the Strait of Hormuz. That left open the question of whether Iran could later seek fees, which Tehran has argued would be for managing and maintaining the waterway.When asked about enforcement and possible violations, Trump said the U.S. response would not be limited to legal action.”What else am I going to do? Am I going to say ‘I’m going to take you to court? Let me take you to court. Let me sue you.’ No, we’re going to bomb the hell out of them if they violate the agreement. I don’t want them to. I want them to honor the agreement,” Trump said.Senior U.S. administration officials said the details of a final deal to end the Iran war still need to be negotiated over the next 60 days. The president framed the initial deal as both an economic and national security decision. Trump said the priority is stopping Iran from obtaining a nuclear weapon while easing the economic fallout from the war, including higher oil prices and pressure on the Strategic Petroleum Reserve.Trump claimed the reserve was weeks away from running dry and said he did not want to be remembered like Herbert Hoover, the president widely blamed for the onset of the Great Depression.See more stories from the Washington News Bureau:
President Donald Trump defended his Iran deal after questions were raised about a proposed $300 billion economic development plan, sanctions relief and how the agreement would be enforced.
Trump said the United States would not pay Iran directly, but acknowledged that part of the arrangement involves Iran accessing its frozen funds.
“We have taken a lot of their money, and we have their money. We have taken them—it’s not our money, it’s their money—and we froze it. At a certain point in time, I guess we’re going to have to give it back,” Trump said.
The 14-point memorandum of understanding (MOU), read to reporters by senior U.S. officials, outlined that the U.S. would work with Gulf-region partners on a plan of at least $300 billion for Iran’s reconstruction and economic development.
The MOU also laid out that the U.S. would grant all licenses, waivers and permissions needed for the relevant financial transactions. The mechanism for carrying out that plan would still have to be finalized as part of a final deal that’s expected to be reached within 60 days.
The $300 billion proposal is one of several economic provisions. The agreement included that the U.S. would “undertake to terminate” all types of sanctions against Iran, including United Nations Security Council (UNSC) resolutions, International Atomic Energy Agency (IAEA) Board of Governors resolutions and U.S. primary and secondary sanctions, on an agreed schedule as part of the final deal.
It also said the Treasury Department would issue waivers for the export of Iranian crude oil, petroleum products and derivatives, along with associated services including banking transactions, insurance and transportation.
The MOU further highlighted that frozen or restricted Iranian funds and assets would be made fully available for use upon implementation of the memorandum. The two sides would mutually agree on procedures for releasing those funds during negotiations.
On the nuclear issue, the deal said Iran reaffirmed that it shall not procure or develop nuclear weapons. The document explained that the two sides would resolve the fate of Iran’s enriched nuclear material through a mutually agreed mechanism, with the minimum method being downblending on site under the supervision of the IAEA.
The agreement is also designed to restart commercial traffic through the Strait of Hormuz immediately, with full restoration expected within 30 days. Iran is expected to remove technical and military obstacles, including mines in the Strait. Also included in the MOU, Iran cannot charge commercial vessels for safe passage during the 60-day memorandum period.
But questions remain about what happens after that. The deal said Iran would hold talks with Oman and other Persian Gulf states over the future administration and maritime services in the Strait of Hormuz. That left open the question of whether Iran could later seek fees, which Tehran has argued would be for managing and maintaining the waterway.
When asked about enforcement and possible violations, Trump said the U.S. response would not be limited to legal action.
“What else am I going to do? Am I going to say ‘I’m going to take you to court? Let me take you to court. Let me sue you.’ No, we’re going to bomb the hell out of them if they violate the agreement. I don’t want them to. I want them to honor the agreement,” Trump said.
Senior U.S. administration officials said the details of a final deal to end the Iran war still need to be negotiated over the next 60 days.
The president framed the initial deal as both an economic and national security decision. Trump said the priority is stopping Iran from obtaining a nuclear weapon while easing the economic fallout from the war, including higher oil prices and pressure on the Strategic Petroleum Reserve.
Trump claimed the reserve was weeks away from running dry and said he did not want to be remembered like Herbert Hoover, the president widely blamed for the onset of the Great Depression.
See more stories from the Washington News Bureau:
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