Iran-US Deal Sparks Skepticism Among Iranians
The Iran-US Tentative Agreement
The world let out a collective sigh of relief when the United States and Iran announced that a memorandum of understanding had been agreed to end nearly four months of hostilities on Sunday. But on the streets of Tehran – exhausted by years of sanctions and tensions – the ceasefire announcement has done little to instill confidence that the crisis is over.
Key Provisions of the Deal
An agreement between the two sides, to be signed on Friday, looks set to reopen the Strait of Hormuz, largely controlled by Iran since the war began on February 28, something it is hoped will stabilise rattled energy markets. In return, the US will lift a naval blockade on Iran’s southern ports, which has squeezed Iran’s already embattled economy.
Skepticism Among Iranians
Many important and delicate issues still remain to be addressed, such as the future of Iran’s nuclear programme, US sanctions, and Tehran’s frozen assets. These will likely be deferred until a later date, leading to pessimism among many in Iran that a long-term resolution will ever be finalised.
- “I think the agreement doesn’t have huge benefits for the people because it won’t be really enforced in full to bring any stability to our lives,” said Parisa, a university student based in Tehran.
- “It might work for now, but both sides will jeopardise it based on their own interests.”
Concerns and Criticisms
Iranians say that before a potential long-term deal is realised, harsh US and United Nations sanctions – which have made Iran poorer and isolated its businesses from global markets – will need to be lifted. There is the issue of the billions of dollars of frozen overseas Iranian assets and Tehran’s demand for a fee for ships to cross the Strait of Hormuz.
Market Reactions
Iranian markets have welcomed the prospect of an end of direct hostilities and the potential benefits that lifting the US blockade will have on the availability and price of imported goods. The national currency also strengthened on Monday for a third day since the start of the working week in Iran, changing hands for about 1.61 million rials per US dollar.