Enriched Uranium, Sanctions, Frozen Assets: What's At Stake In The Proposed Iran-US Peace Deal

(MENAFN- Live Mint) The United States and Iran appear to be edging closer to a potential diplomatic breakthrough, with both sides discussing a proposed 14-point memorandum of understanding that could pave the way for a broader peace agreement aimed at ensuring long-term regional stability.

Top American and Iranian negotiators recently held talks in Doha, where officials from both countries signalled that progress had been made toward a possible deal.

The framework of the peace deal focuses on ending the war and the US naval blockade in exchange for Tehran taking steps to ensure safe transit through the Strait of Hormuz, spokesperson Esmaeil Baghaei said.

Since the ceasefire, the issues that have remained points of conflict between the two sides include Iran's nuclear ambitions, the lifting of sanctions, Israel's war in Lebanon, and the release of frozen assets. Here is a look at them:

Enriched uranium

The United States believes that Iran wants to develop a nuclear weapon, although Tehran has consistently maintained that its atomic programme is intended solely for peaceful purposes. The focus remains on Iran's uranium enrichment programme, which can generate fuel for nuclear power but can also be used to produce material for a nuclear warhead.

Donald Trump has repeatedly said that his key objective in the war is to prevent Iran from developing a nuclear weapon using its highly enriched uranium. Tehran has consistently denied having any such plans.

In a statement, the president said Iran's enriched uranium would either be handed over to the US or, preferably, destroyed in Iran.“The Enriched Uranium (Nuclear Dust!) will either be immediately turned over to the United States to be brought home and destroyed or, preferably, in conjunction and coordination with the Islamic Republic of Iran, destroyed in place or, at another acceptable location, with the Atomic Energy Commission, or its equivalent, being witness to this process and event,” Trump said in a post on Truth Social.

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Iran has so far opposed the idea of handing over its uranium stockpile to another country.

According to the International Atomic Energy Agency, Iran possesses 440.9 kilograms (972 pounds) of uranium enriched up to 60% purity, a short technical step away from weapons-grade levels of 90%.

Strait of Hormuz

US Secretary of State Marco Rubio, who is in India for the Quad meeting, asserted that the United States would give diplomacy every chance to succeed before considering dealing with Iran“another way”.

Speaking to reporters in New Delhi, Rubio said the critical waterway had to be reopened“one way or the other”.

Since the United States and Israel launched strikes on Iran on 28 February, only a few dozen vessels have been passing through the Strait of Hormuz daily, compared with 125 to 140 previously. The stand-off has caused a spike in oil prices and increased the cost of fuel, fertiliser, and food.

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While reopening the Strait of Hormuz is essential for the smooth flow of trade, its management has also emerged as a point of discussion during negotiations.

Iranian diplomat Esmail Baghaei recently said the proposed deal contained no specific details regarding the management of the Strait of Hormuz. Reports had suggested that Iran wanted to charge countries for using the waterway.

Addressing the speculation, Baghaei clarified that Iran would not impose tolls on ships passing through the strait. However, there would be charges for services such as navigation and environmental protection measures.

Sanctions and frozen assets

Iran is also seeking the lifting of all sanctions that have severely impacted its economy. Tehran urgently wants the sanctions removed and tens of billions of dollars in Iranian oil revenues frozen in foreign banks released. It is also seeking reparations for war-related damage.

A United States official confirmed the 60-day negotiation period and said that if Iran does not give up its uranium stockpile, there will be no sanctions relief.

Meanwhile, a senior Iranian diplomat told the ISNA news agency that if the United States fulfils its commitments under the proposed memorandum of understanding currently under discussion,“the nuclear issue and highly enriched uranium reserves will be discussed during the 60-day negotiations in exchange for the lifting of sanctions.”

(With agency inputs)

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