US-Iran MOU in sight, but Strait of Hormuz, nuclear dismantlement talks loom large

By Park Hye-won, The Herald Business

The United States and Iran agreed Friday to sign a memorandum of understanding on ending hostilities, but the two countries face a rocky road ahead as they head into detailed negotiations over the Strait of Hormuz, Iran's nuclear program and sanctions relief.

Both sides are maneuvering to extract maximum advantage from the peace process. Under the framework, the two countries are set to begin substantive talks within 60 days of signing the MOU.

The Strait of Hormuz — a critical chokepoint for global oil shipments — is shaping up as one of the sharpest sticking points. Washington has offered to lift sanctions on Tehran in exchange for the immediate opening of the waterway, but Iran insists on retaining control of the strait and has signaled it intends to charge transit fees, effectively treating passage as a toll route.

The question of sanctions relief and the release of frozen Iranian assets is also generating conflicting accounts. Iranian media reported that billions of dollars in frozen funds would be unlocked immediately after the MOU is signed, with access to remaining assets phased in during subsequent negotiations.

Washington, however, says economic rewards will be conditional on Iran actually dismantling its nuclear program and facilities and disposing of or removing nuclear material. US Vice President JD Vance underscored the point, saying that merely signing an agreement or attending meetings would not be enough to free the frozen funds.

On the nuclear question, the MOU is said to include a declaratory clause in which Iran pledges to renounce nuclear weapons "indefinitely." The US claims Iran has in effect already agreed to give up its nuclear program, but Tehran says concrete negotiations on that front will only proceed after the ceasefire agreement is implemented. Iran has also drawn a clear line against US demands that its enriched uranium be shipped abroad or destroyed, insisting the only acceptable option is dilution inside the country.

Even the signing venue has become a point of contention. The US prefers Geneva, a Western city with symbolic weight, while Iran is pushing for a remote signing — a stance widely interpreted as Tehran's refusal to cede any political symbolism to the other side.