Iran’s proposed memorandum demands US sanctions relief and blockade removal, terms Washington has already rejected, dimming deal prospects.
A draft memorandum of understanding between the US and Iran remains unfinalized, with Iran insisting on sanctions relief, frozen funds release, and a naval blockade lift. The US has dismissed these demands, particularly the removal of oil sanctions and the naval blockade in the Strait of Hormuz, citing unresolved nuclear compliance concerns.
Negotiations have yet to address core issues like Iran’s nuclear program and economic cooperation, while missile discussions are explicitly excluded. Prior attempts at agreement collapsed under similar disputes, with the US refusing to lift sanctions before Iran meets nuclear obligations.
Markets have reacted cautiously, as the persistent impasse reduces near-term expectations for a deal that could ease Middle East tensions and stabilize oil supply routes.