U.S.-Iran peace accord grants Iran $300 billion and Strait of Hormuz control, allies protest

The United States and Iran have released the full text of a Memorandum of Understanding that terminates active hostilities and initiates a 60-day negotiation phase aimed at a more detailed compliance framework. Under the accord, Iran is prohibited from developing nuclear weapons but may continue its existing nuclear activities, and the blockades of the Strait of Hormuz are lifted, allowing free passage of commercial vessels for 60 days before control shifts to Iran and Oman, opening the door to future tolls.

The deal includes a $300 billion investment package from international partners and the release of $100 billion in frozen Iranian assets. While many nations welcome the cessation of war and the reopening of trade routes, U.S. allies criticize the arrangement for solidifying Iran’s Gulf hegemony, leaving its nuclear program untouched, and ignoring Hezbollah’s ongoing attacks on Israel. Israeli Prime Minister Netanyahu labeled the pact a strategic disaster, and U.S. politicians Mike Pence and Bill Cassidy called it a major foreign-policy blunder.