Iran will reopen Strait of Hormuz and can sell oil freely under deal with US, according to leaks

A woman waves an Iranian flag during a pro-government campaign as a portrait of the slain Supreme Leader Ayatollah Ali Khamenei, who was killed in U.S. and Israeli strikes on Feb. 28, is displayed at right, in downtown Tehran, Iran, Monday, June 15, 2026. (AP Photo/Vahid Salemi)2026-06-17T10:13:35Z DUBAI, United Arab Emirates (AP) — Iran will immediately take steps to reopen the Strait of Hormuz once a tentative deal with the U.S. to end the war is signed and will be allowed to sell its oil without restrictions, according to leaked copies of an interim agreement that officials say broadly matches the document.The accord, due to be formally signed in a ceremony in Switzerland on Friday, lays out that the U.S. would secure at least $300 billion to rebuild Iran after the war and work to end all American and United Nations sanctions imposed on Tehran if a final agreement addressing Iran’s nuclear program is reached.The U.S. agreement to immediately allow Iran to sell its oil freely and the offer to eventually lift all sanctions represent major concessions that outstrip the terms of Iran’s 2015 nuclear deal with world powers, which U.S. President Donald Trump unilaterally withdrew America from in his first term, declaring it the “worst deal ever.” This new accord likely will draw intense criticism in Washington — and appears to be a major setback for Israeli Prime Minister Benjamin Netanyahu, who launched the war with Trump on Feb. 28. The deal calls for an immediate end to all fighting in Lebanon between Israel and the Iranian-backed militia Hezbollah. That is one of the most delicate parts of the agreement because Israel has maintained it will continue to defend itself and to occupy vast swaths of Lebanon. Iran has said it must withdraw under the deal, although the leaked versions make no mention of withdrawal. The two sides are to start 60 days of negotiations over a final deal that the Trump administration insists will prevent Iran from ever developing a nuclear weapon. The U.S. offers appear aimed at enticing Iran to strike an agreement. Read More But in the meantime, Iran appears to be getting benefits up front while making few concessions. Much of the agreement would restore the status quo before the war, including ending hostilities and reopening the strait, which is a crucial passage for the world’s oil and natural gas and whose closure created a historic energy crisis. Other concessions to Iran — some of which are extraordinary, including the money for rebuilding, the full lifting of sanctions and the release of frozen assets — appear dependent on the progress of further negotiations on Iran’s nuclear program. Sign up for Morning Wire: Our flagship newsletter breaks down the biggest headlines of the day. Email address Sign up By checking this box, you agree to AP's Terms of Use and acknowledge that AP may collect and use your data pursuant to our Privacy Policy. A person who was briefed on the memorandum of understanding after it was signed and another who viewed a copy beforehand said it largely matched the text of what was published by the Saudi-owned broadcaster Al Arabiya, which reported details of the deal Tuesday. The two people spoke on condition of anonymity because of the sensitivity of the discussions.Another two officials in the Mideast, who spoke on condition of anonymity for the same reason, also said the versions published by Al Arabiya and Bloomberg broadly matched the final agreement.The White House and other American officials have not published the terms and did not immediately respond to questions. Iran also has not published an official version of the deal. Iran’s semiofficial Tasnim news agency, close to its paramilitary Revolutionary Guard, claimed Wednesday that Bloomberg’s version had missing portions, without offering a full accounting. The deal would provide relief to the global economyThe deal provides a major win for the global economy — 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 strait’s closure drove up energy prices around the world and made many basics, including food, more expensive. Iran let out some vessels that paid tolls, something never done before in the strait, which sits in the territorial waters of Iran and Oman and long has been considered an international waterway. The U.S. later provided military support to get other tankers out, but traffic through the strait was nowhere near levels before the war. The deal calls for the U.S. to lift a blockade imposed on Iranian ports and for the strait to return to its prewar traffic levels in 30 days, while acknowledging Iranian mines may still be in its waters that need to be destroyed. The deal provides major concessions to IranWhile the deal says that the eventual lifting of sanc