Report: Trump Signs Strait of Hormuz MOU With Iran
The U.S.-Iranian memorandum of understanding on a 60-day ceasefire and a reopening of the Strait of Hormuz has been signed, five days ahead of schedule, according to Reuters senior defense correspondent Phil Stewart.
A senior U.S. official told Reuters that President Donald Trump and Vice President JD Vance have signed the MOU for the United States, and that Iranian parliamentary speaker Mohammad Bagher Ghalibaf has signed it for Iran.
The initial announcement Sunday called for a formal signing ceremony in Geneva on Friday; the rationale for the accelerated timetable was not provided, but the president has expressed interest in starting the flow of tanker traffic through the waterway as quickly as possible. An early signing also precludes the possibility that warlike events (by any regional party) could derail the agreement before it could be formalized.
The deal includes the immediate lifting of restrictions on Hormuz transits for 60 days, including the full suspension of the U.S. naval blockade of Iranian ports. The early signing and entry into effect appears to contradict advice from front-line units: just hours earlier, U.S. Central Command had warned commercial shipping that the U.S. portion of the blockade remained active and would be enforced until June 19. "Do not attempt to cross until explicit direction is given," CENTCOM warned Monday morning.
The MOU's authorization for Iran to access billions of dollars in frozen funds will be closely metered out, as will sanctions relief, the official told Reuters. Iranian state media sources have claimed that the U.S. would authorize a $12 billion payment up front, but American officials (off the record) have insisted that the deal will be a pay-for-performance arrangement, giving Iran access to billions of dollars only when it shows cooperation.
Conservative outlet Israel Hayom reports that the U.S. authorized limited payments to Iran beginning as early as last month. Three diplomats confirmed to the outlet that the U.S. approved a Qatari plan to purchase protection from Iranian missile strikes on energy facilities and secure permission for Qatari vessels to exit the Gulf, without risk of Iran's attacks on shipping. The net value of the arrangement was in the billions, Israel Hayom reports.
Shipping welcomes agreement
Shipping industry stakeholders have welcomed the news of the MOU, but with caution. "Due to lack of details and a history of overly optimistic reassurances, we believe the security situation for the shipping industry remains volatile, and we still consider it very risky for ships to commence transits," Jakob Larsen, Chief Safety & Security Officer at BIMCO, said in a statement.
IMO welcomed the news of the MOU "with great satisfaction," and expressed its condolences to the families of seafarers whose lives were lost in the course of the brief conflict. IMO plans to work at a prudent pace to activate its plans to evacuate thousands of seafarers from the Arabian Gulf and bring their ordeal to an end - once safety and security is assured.
The International Chamber of Shipping (ICS) also welcomed the news, and called for toll-free transit going forward. "With around 500 ships needing to pass through the Strait to exit the area this will require coordination," ICS wrote. "The fundamental principle of freedom of navigation has been sidelined during the war, and many seafarers have regrettably been injured or lost their lives. As we now hopefully move towards peace, we must see a permanent return to vessels being able to pass through the Strait of Hormuz unimpeded without paying a toll or other clearance mechanism."
Critics predict long-term costs
The Trump administration's domestic critics welcomed the MOU as the best possible choice available, but suggested that it was still a loss compared to the situation before the war.
"Make no mistake: these are Iran's terms. They made one single concession - opening the Strait. And it's not even a concession because the Strait was open before the war," said Sen. Chris Murphy (D-CT), a critic of the administration's decision to go to war with Iran. "Iran says it will get billions in frozen funds from the U.S. So we are essentially paying them money to open the Strait."
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Israeli commentators have generally panned the deal as a threat to their nation's security, especially as the terms purport to restrict Israel's freedom of action to conduct military operations in Lebanon (though Israel says that it will not abide by this restriction). Prime Minister Benjamin Netanyahu's limited ability to prevent or influence the U.S.-Iranian MOU is expected to be a central issue for the next Israeli election.
"The Islamic Republic’s grasp on power seems more secure than ever, Israel has lost the legitimacy to respond to direct Hezbollah attacks on its territory, and US President Donald Trump [has signed - ed.] a deal with Iran that achieves none of the goals stated by either the US or Israel at the outset of the war on February 28," commented Times of Israel's Lazar Berman. "The exact details of the MOU remain unclear, but in no version leaked to the media does the agreement touch on ballistic missiles or Iran’s support for terror groups."
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