Iranian National Television: Draft US-Iran Understanding Memorandum Grants Iran Authority to Control the Strait

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Golden Finance reports that Iran’s state television has reported that this as-yet-unfinalized informal draft states that Iran has exclusive authority to determine the status of vessels passing through the Strait of Hormuz. If the cargo carried by a ship is deemed threatening, or if the actual beneficial owner is an Iranian adversarial force, the ship will not be considered a civilian commercial vessel and will be prohibited from transiting. Iran has the right to designate shipping lanes, set navigation fees, ensure the safety of the shipping channel, and handle issues related to environmental damage. The draft shows that the U.S. has committed to assisting Iran in fully unfreezing $12 billion in frozen assets within 60 days. This funding can be transferred to Iran’s designated banks and used without restrictions. At present, this draft is only an informal consensus, and it still requires review, negotiation, and revision by all parties.
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