US Recognized Iranian Sovereignty Over Strait of Hormuz in Last-Minute Deal Concession

The United States has formally agreed to recognize Iranian and Omani sovereignty over the Strait of Hormuz as part of last-minute changes to the U.S.-Iran memorandum of understanding, Iran's Fars News Agency reported Monday, in what analysts are calling one of the most dramatic American concessions in the agreement.

According to Fars, which cited a source with direct knowledge of the final text, earlier drafts of the deal had included provisions guaranteeing only Iran's sovereign operations and security arrangements in the strait. The new language formally establishes that "the future management of maritime navigation services in the Strait of Hormuz" will be determined jointly by Iran and Oman.

The inclusion of "maritime services" in the official text amounts to de facto American recognition of Iran's right to collect direct financial payments from commercial vessels transiting the strait. Under the deal's terms as reported, Iran will grant ships a 60-day exemption from tolls, defined as a temporary discount granted to Washington, after which the Islamic Republic plans to charge commercial vessels for safety, navigation, environmental, and insurance services. Revenues are intended to fund Iran's economic development.

The last-minute concession is reported to have been offered as a "gift" to Tehran to dissuade Iran from retaliating militarily against Israel following Sunday's Israeli strike on Dahiyeh in Beirut, which nearly derailed the negotiations entirely.

Trump declared in a Truth Social post overnight: "I hereby fully confirm the free opening of the Strait of Hormuz, while simultaneously confirming the immediate removal of the United States naval blockade. Ships of the world, start your engines. Let the oil flow!"

The post made no reference to the toll or sovereignty provisions.

The broader deal, which Trump announced had been completed overnight, includes the unfreezing of $24 billion in Iranian assets before detailed permanent arrangements are negotiated, a $300 billion U.S.-backed economic reconstruction plan for Iran, and immediate suspension of oil and petrochemical sanctions. Washington has not officially confirmed the economic figures, which were reported by Iranian state media.

The nuclear question remains entirely unresolved. The agreement sets a 60-day window for technical negotiations to begin after the signing ceremony in Switzerland. In a significant last-minute reversal, Trump acknowledged in an interview with the New York Times overnight that Iran will be permitted to continue enriching uranium on its own soil at low levels, identical to the terms of the 2015 Obama-era nuclear deal he spent years denouncing. The reversal marks a stark departure from his previously stated red line that Iran would "never" be permitted to enrich.

In other words, Iran has already received its core demand on enrichment before negotiations have even begun.

Lebanese Hezbollah is explicitly included in the deal's ceasefire framework. Pakistani Prime Minister Shahbaz Sharif, the lead mediator, confirmed that "both sides declared an immediate and permanent cessation of military operations on all fronts, including Lebanon." Iran's deputy foreign minister echoed the statement. Israel was not party to the negotiations and has not issued an official response to the agreement.

Middle East experts expressed deep skepticism that the remaining gaps on the nuclear file could be bridged within 60 days. Senator Lindsey Graham said he expects any final nuclear agreement to be sent to Congress for review and a vote.

Trump warned in his New York Times interview that the United States would resume military strikes on Iran at full force if nuclear talks collapse within the two-month window.

The deal is expected to be formally signed Friday in Switzerland.