US and Iran offer conflicting interpretations of Hormuz peace agreement
Nuclear talks and sanctions relief enter a crucial 60-day negotiation phase
Iran’s frozen assets and uranium stockpile remain key unresolved issues
The United States said on Monday that ships will move toll-free through the Strait of Hormuz under the Iran peace deal President Donald Trump signed over the weekend, even as Tehran's own foreign ministry offered a notably different account of what the agreement actually permits — the latest sign that the memorandum's text remains contested even after signing.
Trump, Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Ghalibaf electronically signed the memorandum of understanding on Sunday, US officials said, with a physical signing ceremony expected to follow in Geneva. Vance will lead technical talks this week. While Trump suggested from the G7 summit in France that the text would likely be released after Friday, US officials said on the call with reporters that it would be published within 24 to 48 hours.
The signing opens a 60-day window for Washington and Tehran to negotiate a fuller peace settlement, with nuclear discussions set to be prioritised. But Iran's Foreign Ministry said on Monday that the deal would actually allow it to charge maritime service fees on vessels transiting the strait, rather than imposing the toll-free passage the US has been celebrating — a contradiction that echoes the broader pattern of both sides describing the same document in starkly different terms.
Frozen Funds Tied to "Performance"
US officials were emphatic that no economic benefits had yet flowed to Iran. A possible $300 billion reconstruction fund for Iran was discussed, alongside sanctions relief and the release of frozen assets, but officials stressed all of it would be "tied to performance." Vance said no US taxpayer money would go to Iran under the arrangement, arguing instead that Americans would benefit indirectly from Iran's reintegration into the international economy.
Vance also said US and international nuclear inspectors would be allowed back into Iran, telling NBC that one of the agreement's core provisions involved the International Atomic Energy Agency and the United States jointly helping Iran destroy its stockpile of highly enriched uranium — a claim Iran has not publicly confirmed.
Deal Trump Compares to Obama's
In a separate, lengthy interview with The New York Times conducted from the White House on his 80th birthday, Trump offered a more expansive and at times contradictory account of the agreement's substance. He insisted the deal would ensure Iran "cannot develop or purchase a nuclear weapon" — a commitment Iran first made under the 1970 Nuclear Nonproliferation Treaty and reaffirmed in the 2015 Obama-era accord he has repeatedly criticised. He suggested Iran might agree to suspend enrichment for 15 to 20 years, but acknowledged that figure remained under negotiation, as did the precise enrichment ceiling Iran would be held to going forward.
