Iran's State TV reported that it has a draft of the initial unofficial framework of the Memorandum of Understanding with the United States (US).

According to the document, the US military forces will withdraw from the vicinity of Iran and lift the naval blockade. In Return, Iran has committed to restoring the number of commercial transit ships through Hormuz Strait to pre-war levels within in one month.

Key takeaways

"Military vessels are not included in this draft agreement."

"The management and route of ship traffic through Strait of Hormuz will be handled by Iran in cooperation with Oman."

"If a final deal is reached within 60 days, this agreement will be approved in the form of a binding UN security council resolution."

"The Islamabad Memorandum framework is not yet finalized; no step will be taken by Iran without tangible verification."

Market reaction

The US Dollar (USD) Index edged lower with the immediate reaction and was last seen losing 0.12% on the day at near 99.00.