Key insights
- The US and Iran are negotiating a deal where the US would release $20B in frozen Iranian funds in exchange for Iran surrendering its enriched uranium stockpile. Pakistan is mediating the talks. A successful resolution could reduce geopolitical risk and potentially lead to lower oil prices, providing a marginal boost to US equities.
Investing.com -- The U.S. and Iran are negotiating a three-page plan to end the war as it approaches the 50-day mark, with discussions centered on the U.S. releasing $20 billion in frozen Iranian funds in exchange for Iran surrendering its stockpile of enriched uranium, according to Axios, citing two U.S. officials and two sources briefed on the talks.
President Trump said Thursday that U.S. and Iranian negotiators would likely meet this weekend for a second round of talks. The discussions are expected to take place in Islamabad on Sunday, according to a source familiar with the mediation efforts. Pakistan is mediating the negotiations with behind-the-scenes support from Egypt and Turkey.
The U.S. initially proposed releasing $6 billion for Iran to purchase food, medicine and humanitarian supplies, while Iran demanded $27 billion, according to two sources cited by Axios. The latest figure under discussion is $20 billion, which one U.S. official described as a U.S. proposal.
The parties are negotiating what will happen to Iran’s stockpile of nearly 2,000kg of enriched uranium, including 450kg enriched to 60% purity. Under a compromise proposal, some of the highly enriched uranium would be shipped to a third country, while some would be down-blended in Iran under international monitoring, according to the sources.
The memorandum of understanding also includes a voluntary moratorium on nuclear enrichment by Iran. The U.S. requested a 20-year moratorium, while Iran countered with five years.