Overview of the New US-Iran Agreement
The Trump administration has disclosed the long-awaited Memorandum of Understanding (MoU) between the United States and Iran, aimed at resolving conflicts in the Middle East. President Donald Trump signed the agreement in France, while Iranian President Masoud Pezeshkian electronically endorsed it from Tehran. The administration has consistently claimed that this new agreement is more favorable for the US compared to the Joint Comprehensive Plan of Action (JCPOA) established under former President Barack Obama.
The JCPOA, signed in 2015 by Iran and the P5+1 nations—China, France, Russia, the UK, the US, and Germany—was designed to limit Iran's nuclear capabilities in exchange for sanctions relief. It imposed strict controls on Iran's nuclear program and required extensive international inspections. However, Trump criticized the JCPOA and withdrew the US from it in 2018, citing its failure to address broader security issues. With the new agreement in place, let's explore the significant differences between the JCPOA and the new 14-point MoU.
Iran's Nuclear Program
On Iran's Nuclear Program
Under the JCPOA, Iran committed to not producing highly enriched uranium or plutonium suitable for nuclear weapons. The agreement limited the number and types of centrifuges Iran could operate, restricted uranium enrichment levels, and controlled the size of Iran's enriched uranium stockpile. It also mandated extensive monitoring by the International Atomic Energy Agency (IAEA).
In contrast, under Trump's agreement, Iran has reiterated its commitment to not develop nuclear weapons. The US and Iran have agreed to manage the disposition of enriched material stockpiles through a mutually accepted mechanism, with on-site downblending under IAEA supervision being the minimum requirement. Both parties have also agreed to discuss enrichment and other related matters based on a satisfactory framework to be established in a future agreement.
Nuclear Inspections
Nuclear Inspection
The JCPOA included a verification mechanism led by the IAEA, overseen by a Joint Commission comprising representatives from all participating nations. Initially, the agency confirmed that Iran was adhering to its commitments, which led to sanctions relief. However, after the US exited the agreement, Iran gradually surpassed several limits, increasing uranium enrichment and expanding its centrifuge program. As compliance deteriorated, the agreement became largely inactive, and attempts to revive it were unsuccessful.
Under Trump's agreement, there is no stipulation for inspecting Iran's nuclear facilities.
Sanctions and Financial Aspects
Sanctions and Frozen Funds
Under the JCPOA, the EU, UN, and US agreed to lift nuclear-related sanctions on Iran, although many US sanctions remained, particularly those concerning Iran's ballistic missile program and human rights violations. While Washington consented to lift sanctions on Iranian oil exports, restrictions on financial transactions persisted, hindering international trade with Iran. The agreement also allowed for the lifting of a UN ban on Iran's transfer of conventional weapons after five years, contingent on IAEA certification of Iran's nuclear activities being civilian.
In Trump's deal, the US commits to issuing waivers for the export of Iranian crude oil and associated services immediately upon signing the MoU, until sanctions are lifted. The agreement also stipulates that frozen or restricted Iranian funds will be made available upon implementation of the MoU, with both sides negotiating the release procedures.
Financial Aid to Iran
Money To Iran
Under the JCPOA, the funds Iran received were not direct payments from the US government but rather access to Iranian foreign assets restricted by international sanctions. The often-quoted figure of $150 billion was misleading; Iran could access around $100 billion, with half tied up in foreign debts. Following the JCPOA's implementation, the US also transferred $1.7 billion to Iran, which included $400 million from a US Foreign Military Sales trust fund and $1.3 billion in interest.
Under Trump's agreement, the US, along with regional partners, will develop a comprehensive plan worth at least $300 billion for Iran's reconstruction and economic development, with the implementation mechanism to be finalized within 60 days as part of a final agreement.
