A leaked interim agreement between the United States and Iran reveals sweeping concessions that would immediately lift restrictions on Iranian oil sales and provide at least $300 billion in reconstruction aid, according to multiple officials who reviewed copies of the document set to be signed Friday in Switzerland.
The accord, designed to end a war that began less than 4 months ago when the U.S. and Israel attacked Iran, would halt fighting before securing commitments on Iran's nuclear program and open a 60-day negotiation window. The deal includes immediate steps to reopen the Strait of Hormuz, a crucial passage for global oil and natural gas whose closure created a historic energy crisis affecting energy markets worldwide.
Unprecedented Sanctions Relief
The agreement goes beyond the terms of Iran's 2015 nuclear deal with world powers, according to the leaked documents published by Al Arabiya and Bloomberg. Iran would be allowed to sell its oil without restrictions immediately, with the U.S. issuing waivers to sanctions during the 60-day talks. The Islamic Republic's oil export revenues in 2024 were more than $46 billion, with China as its main buyer purchasing at below-market prices due to sanctions.
Granting oil waivers at the start of negotiations strips the U.S. of major leverage, a significant departure from the 2015 accord when sanctions on Iranian oil were lifted only after the deal's conclusion. The interim deal also opens the door to ending all sanctions Iran faces from the U.S. and United Nations, including those over Tehran's weapons programs and human rights abuses, though the schedule for that will be worked out later.
Reconstruction Funding and Regional Impact
The deal would provide Iran with at least $300 billion to rebuild after an intense U.S. and Israeli bombing campaign. U.S. Vice President JD Vance has said Gulf Arab nations would invest that amount, but President Donald Trump said Wednesday the U.S. would not contribute and that it was up to other countries if they wanted to invest. The money appears dependent on the progress of further negotiations, according to officials from Pakistan, a key mediator.
The accord includes an end to fighting in Lebanon between Israel and the Iranian-backed militia Hezbollah. Israel has maintained it will continue to defend itself and to occupy vast swaths of Lebanon, while Iran has said Israel must withdraw under the deal, though the leaked versions make no mention of withdrawal.
Uncertain Presidential Commitment
Trump said Wednesday in France, where he was attending a Group of Seven summit, that he was uncertain whether the signing would happen as planned. "You never know with deals, do you? But you're going to find out pretty soon," he said, while also saying he expects the "very strong" accord will be signed in Switzerland. He added, "Nobody knows what it is, but it's very strong," and said, "It's a memorandum of understanding, and if I don't like it, we'll go back to shooting at them, dropping bombs."
White House communications director Steven Cheung wrote online Wednesday after CNN published a leaked version of the deal that it "does not reflect the language of the actual" agreement, without elaborating. Iran also had not published an official version of the deal, and the semiofficial Tasnim news agency, close to its paramilitary Revolutionary Guard, said Wednesday that Bloomberg's version had missing portions, without offering a full accounting.
Nuclear Negotiations Postponed
The U.S. and Israel went to war on Feb. 28 in part to prevent Iran from ever getting a nuclear weapon, although Trump's goals in the conflict had repeatedly shifted. The interim deal would stop the fighting before that aim is secured and open a two-month period for nuclear negotiations. The deal sets a 60-day window, which can be extended, to negotiate over limiting Iran's nuclear program. The U.S. promises not to make threats of military action under the current deal after two rounds of talks were interrupted by attacks.
Iran maintains its nuclear program is peaceful, though it has enough highly enriched uranium to build multiple atomic bombs, should it choose to do so, according to the International Atomic Energy Agency. In the interim deal, Iran reiterates that it will never build a nuclear weapon, a promise it also made in the 2015 nuclear accord. Trump withdrew America from that pact in his first term, calling it the "worst deal ever."
Strait of Hormuz Reopening
The deal provides for the reopening of the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a fifth of all oil and natural gas traded once passed before the war began. Since then, Iranian attacks on shipping and the threat to vessels effectively shut the strait. The deal says the U.S. will lift a blockade imposed on Iranian ports and that the strait will return to its prewar traffic levels in 30 days, while acknowledging Iranian mines may need to be destroyed.
Two officials in the Mideast said the versions published by Al Arabiya and Bloomberg broadly matched the final agreement. A person briefed on the memorandum of understanding after it was signed and another who viewed a copy beforehand said it largely matched the text published by the Saudi-owned broadcaster Al Arabiya, which reported details Tuesday. The White House and other American officials had not published the terms and did not immediately respond to questions.
The accord likely will draw intense opposition in Washington and appears to be a major setback for Israeli Prime Minister Benjamin Netanyahu, who has come under criticism at home from the media, his opponents and even some allies as details emerge.
Why This Matters:
The leaked agreement reveals the human and economic costs of a war launched less than 4 months ago that failed to achieve its stated nuclear objectives while creating a global energy crisis through the closure of a passage carrying a fifth of the world's oil and gas. The immediate lifting of oil sanctions and promise of $300 billion in reconstruction aid—funded by other nations, not the U.S.—raises questions about accountability for a bombing campaign that devastated Iranian infrastructure and civilian life. The deal's failure to address Israeli occupation of Lebanese territory or secure meaningful nuclear concessions before granting major sanctions relief suggests vulnerable populations in Lebanon and ordinary Iranians recovering from bombardment may bear ongoing costs while diplomatic leverage is surrendered. The president's public threat to resume bombing if he dislikes the agreement he negotiated undermines the stability needed for displaced families and disrupted communities to rebuild, while intense domestic opposition signals potential collapse of an accord affecting global energy security and regional stability.