US and Iran Sign Peace MOU Electronically... Controversy Over "Only 60 Days of Toll-Free Hormuz" (Comprehensive)

Clash with Trump's "Toll-Free Access" Pledge
Key Issues Like Enriched Uranium Remain Unresolved

AP Yonhap News

Two days before the official signing ceremony of the memorandum of understanding (MOU) to end the war between the United States and Iran, both countries completed an electronic signature process. U.S. President Donald Trump announced that he pursued an early agreement to avoid the economic shock that would result from a prolonged war with Iran. He effectively acknowledged that instability in oil prices and financial markets influenced the decision to end the conflict.

However, significant difficulties are expected during the follow-up negotiations, which will continue for the next 60 days. In particular, controversy is anticipated over the inclusion of a clause in the MOU that provides for free access through the Strait of Hormuz for only 60 days. This stands in contrast to President Trump's earlier declaration, made two days prior when announcing the MOU agreement, that the Strait of Hormuz would be completely open and toll-free.

End of War Amid Financial Market, Oil Price, and Election Pressures... Follow-up Negotiations Expected to Be Difficult

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According to Axios on the 17th (local time), the United States and Iran completed electronic signatures on the MOU remotely, which means its contents are already in effect. Although the official signing ceremony was originally scheduled to be held in Switzerland on the 19th, Axios reported that the signing and implementation schedule was moved up to expedite the reopening of the Strait of Hormuz. The ceremony will still take place as planned in Bürgenstock, Switzerland. Vice President J.D. Vance and Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament, are expected to lead their respective delegations and discuss the commencement of negotiations on Iran's nuclear program.

On the same day, President Trump explained the background of the early agreement at a press conference during the Group of Seven (G7) summit in France, stating, "I did not want to see an economic catastrophe." He also referenced former President Herbert Hoover, who was in office during the Great Depression of 1929, emphasizing, "He was not someone I wanted to become." The Wall Street Journal (WSJ) interpreted this as an effective admission that concerns over soaring oil prices, financial market instability, and the upcoming midterm elections due to a protracted war with Iran were factors that led to the shift toward a ceasefire and negotiations. Until last month, President Trump had denied that the economic burden on Americans influenced the peace negotiations, responding "not at all" when asked about the issue.

Controversy Over "Free Access to the Strait of Hormuz Only for 60 Days"

AP Yonhap News

According to the draft MOU released by the U.S. government, it was agreed that the Strait of Hormuz would be open toll-free for only 60 days. President Trump had previously stated that the strait would be "completely open and free of charge."

Article 5 of the newly signed MOU stipulates, "Iran will do its utmost to ensure that merchant ships traveling from the Persian Gulf to the Gulf of Oman, or vice versa, can pass safely and without any charges for a period of 60 days," thereby limiting free passage to the 60-day main negotiation period.

According to AFP and others, Speaker Ghalibaf, the head of the Iranian negotiating team, said in an interview with Iran's state television, "The Strait of Hormuz will not return to its prewar status," indicating that tolls will be imposed once the free passage period ends. He emphasized, "Iran holds sovereign rights over the Strait of Hormuz and will naturally charge fees for the services we provide." However, Ghalibaf added, "This does not mean we will act in violation of international law or maritime navigation rules."

Economic Compensation for Iran in Exchange for Ending the War... Trump's Political Gamble

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Iran will receive economic compensation on the condition that it implements the agreement. The United States plans to allow financial transactions, sanctions waivers, and access to frozen assets necessary to establish a 300 billion dollar fund for Iran's reconstruction. However, the Trump administration drew a clear line, stating that no direct U.S. government funds would be provided and that economic benefits would be granted only if Iran demonstrates "good behavior" as recognized by the United States.

President Trump commented on Iran's frozen assets, saying, "That is not our money, it is theirs," and added, "At some point, we will have to return it." At the same time, he warned that if Iran fails to uphold the agreement, "we will resume bombing until they comply." This is seen as a rebuttal to domestic criticism that the peace agreement is overly favorable to Iran.

However, key issues such as the dismantling of the nuclear program, handling of highly enriched uranium, ballistic missile concerns, and support for pro-Iranian armed groups have been postponed to follow-up negotiations over the next 60 days. Although Iran has pledged not to pursue nuclear weapons, this has been Iran's consistent position in the past. How to actually limit and verify the nuclear program will need to be determined in future negotiations. Regarding Iran's handling of enriched uranium, Article 8 of the MOU states, "At a minimum, the method will be to dilute it on-site under the supervision of the International Atomic Energy Agency (IAEA)." As a result, controversy is growing over the possibility that Iran will dilute enriched uranium internally.

Amid growing concerns about the follow-up negotiations, the WSJ pointed out that this agreement is also a major political gamble for President Trump. While the agreement is based on the belief that Iran will choose economic recovery over nuclear development, the MOU is closer to a temporary promise to continue negotiations than a final peace treaty.

In addition, President Trump's comments that he "could tolerate Iran possessing some ballistic missiles" and that "blocking access to nuclear weapons is more important than securing highly enriched uranium" have sparked concerns about backlash from the U.S. Republican Party and Israel. Doubts are growing that the original goal of the war—limiting Iran's nuclear and ballistic missile capabilities—may not be fully achieved.

This content was produced with the assistance of AI translation services.