The Trump administration released the full text of the Iran deal on June 17, as the president defended the agreement by warning that continuing the war could lead to an “international depression.”
A senior administration official read the 14-point memorandum of understanding to reporters shortly after Trump’s forceful defense at the G7 summit in Évian-les-Bains, France. The move came after days of demands for transparency from both Republicans and Democrats over what exactly the Iran deal contained.
According to the leaked draft, the agreement commits both sides to an immediate ceasefire, a process to end the U.S. naval blockade, and 60 days of toll-free transit in the Strait of Hormuz. The U.S. will immediately issue sanctions waivers so Iran can begin selling oil and will also begin a process for releasing frozen funds, with Iran’s Central Bank able to freely determine how to spend the money.
The United States undertakes to create a comprehensive plan with Iran for economic development while ensuring financing of at least $300 billion, according to the Euronews report of the full text. Iran will also have to freeze its nuclear program and help to demine the strait.
Trump’s most striking remarks came when he warned critics of the deal that prolonging the conflict carried grave economic risks. “It would have been easier, and I would have satisfied a group of 10 percent of the people, but it would have been the wrong thing to do, and it could have caused an international depression,” Trump said, according to Politico. He added that he did not want to be compared to former President Herbert Hoover, whose term was weighed down by the Great Depression.
The president’s emphasis on economic consequences marked a sharp shift from earlier in the war, when he said the rising oil prices were “worth it” to prevent Iran from getting a nuclear weapon. “Every time we talked about the possibility of peace, the stock market shot up like a rocket ship,” Trump said, underscoring the market’s appetite for an end to the conflict.
Trump defended the deal’s terms against critics in his own party who worry the agreement fails to achieve key objectives. He said the deal does not explicitly address whether Iran keeps its ballistic missiles and that Iran would be allowed to have a nuclear program for civilian purposes, calling both “common sense.” The president indicated that some understandings with Iran are not in writing: “If they don’t honor the agreement, or some things aren’t even mentioned in the agreement, it’s a memorandum of understanding, but we have an understanding of certain things without writing it. And if they don’t honor that, we’ll probably go back to bombing them until they honor it,” Trump said, according to Politico.
The memorandum was supposed to be signed by Vice President J.D. Vance in Switzerland on Friday, but Trump indicated Wednesday it could be signed sooner. The signing will kick off a new round of negotiation on a final agreement within 60 days. “If it doesn’t get done in 60 days, it’s all right. We go back to bombing,” Trump said, though analysts note this threat carries less weight given his demonstrated eagerness to end the conflict.
Sources
- Politico — Trump’s defense of the Iran deal, his “international depression” warning, and details of the agreement’s terms
- Euronews — Full text of the 14-point draft memorandum of understanding, including the $300 billion fund and ceasefire terms
- Reuters — Trump’s statements on the economic consequences of prolonging the war
