Markets are turning positive again as we see oil prices plunge alongside bond yields and stocks move up. The question now though, is this the same draft proposal put forward by the US?
If so, then it surely means that Trump has conceded many key red lines that he previously – up until yesterday – have said that they will not do when agreeing to any deal.
On one part of it, Trump said that:
“The Naval Blockade will remain in full force and effect until this transaction is finalised.”
Meanwhile, Iran’s media source is saying that the draft proposal includes a “commitment for the US to lift its naval blockade”. Perhaps it is just the semantics of the argument here and that I may be overlooking the point of it being a “commitment” and not an official confirmation.
The other part from Iran says that the US is to “cancel oil sanctions and release Iran’s frozen funds”. But so far, the suggestion is that the US is only going to unfreeze a small portion of Iranian financial assets currently locked up in foreign banks. Any broader permanent sanctions relief will be heavily gated, tied entirely to Iran’s compliance to the deal.
Again, I’m not doubting that both sides are close to striking a deal/memorandum of understanding
