US and Iran Reach Deal to End Conflict, Ease Sanctions

The United States has begun waiving some sanctions on Iran as part of an interim deal to end a conflict, though fully dismantling the complex web of restrictions is expected to be a lengthy process. Decades of sanctions have been imposed by the U.S., United Nations, and European Union over Iran's nuclear program, human rights record, and support for regional groups.

The deal includes an immediate halt to military operations, the reopening of the Strait of Hormuz, and the lifting of the U.S. naval blockade on Iranian shipping. Iran has reaffirmed its commitment not to pursue nuclear weapons and to ensure safe passage through Hormuz. The U.S. will also issue waivers for Iranian oil exports and work towards easing sanctions, with a $300 billion reconstruction and economic development plan for Iran included in the agreement. The memorandum of understanding establishes a 60-day framework for negotiations on Iran's nuclear program and further sanctions relief.

However, the process of lifting sanctions is complicated. U.S. sanctions, imposed under various authorities and mechanisms, are not easily reversible. Sanctions imposed by Congress are particularly difficult to remove, especially those targeting the Islamic Revolutionary Guard Corps (IRGC), which Washington designates as a terrorist organization. Similarly, the EU imposed significant sanctions in 2012, including oil embargoes and asset freezes, and has since targeted the IRGC and components for missiles and drones. The complexity means many companies may fear legal repercussions if they return to Iran without a comprehensive lifting of all restrictions.

Iran has tens of billions of dollars in frozen assets in foreign banks, primarily from oil and gas exports, which it cannot access due to banking and oil sector sanctions. Countries like South Korea, China, Japan, Luxembourg, and Iraq hold these inaccessible funds.