Report: The alternatives being examined in the US regarding a central dispute in the negotiations

The negotiations between the United States and Iran continue, and one of the main remaining points of contention concerns the “financial compensation” that Iran demands as part of the signing of the agreement. Tehran conveyed to the mediators the message that it demands to receive financial compensation immediately upon the signing of the initial agreement, while in the United States they prefer to tie the financial compensation to compliance with the terms of the agreement, are afraid of losing valuable leverage and refuse to transfer money directly to Iran, according to a CNN report.

Iran has set a clear condition according to which it demands to receive some form of financial compensation immediately after the two sides reach an agreement on a preliminary memorandum of understanding, and not at a future date. Tehran is demanding 12 billion dollars as part of the current negotiations, when as part of the economic measures against Iran, Iranian assets and funds abroad with an estimated value of about 100 billion dollars were frozen – money that may be critical to the Iranian economy.

But according to the report, officials in the Trump administration fear that releasing funds already at such an early stage could reduce the economic pressure on Iran, thus eliminating one of the main levers of pressure that Washington has on Tehran. In the United States, these funds are seen as an important pressure lever for the second phase of the talks, which is intended to focus on the Iranian nuclear program.

“We have control over money that they claim is theirs,” Trump said at a cabinet meeting last week. “We will continue to control this money. When they behave properly and when they do the right thing, we will allow them to get their money. But right now we are not doing that.”

Sources who spoke to CNN revealed that Trump told his advisers that he would not sign any agreement under which the United States would transfer money directly to Iran. One of the reasons for this is Trump’s fear of comparisons to the nuclear agreement signed by Obama with Iran, to which Trump strongly opposed for years and from which he withdrew in his first term. As part of Obama’s agreement, 1.7 billion dollars were released to Iran.

In the face of Trump’s opposition, the administration is trying to find a creative formula that will please Iran. According to one of the alternatives considered, other countries, including Qatar, will thaw Iranian funds, so that the US will avoid direct payment to the regime. Another alternative being considered is the release of frozen Iranian assets for humanitarian uses only. According to this alternative, the money will go directly to pharmaceutical, food and agricultural product companies. the state after the final agreement.

While the negotiations are underway, the Strait of Hormuz remains closed, and the Gulf states are working hard to find alternative routes that will allow them to be freed in the future from dependence on the narrow sea passage that Iran has proven capable of blocking.

The Wall Street Journal reported that governments across the Gulf are investing billions of dollars in new oil pipelines, rail corridors and energy storage centers – with the aim of bypassing the sea passage that on normal days passes more than 100 ships a day with about a fifth of the world’s energy supply. The logistics map of the region is changing, becoming more based on trucks, trains and new ports.

Even if Washington and Tehran reach an agreement that will allow the opening of the Strait of Hormuz, the transition to exports via alternative routes is expected to remain since the war has proven that backup mechanisms are necessary, the American newspaper reported. Oil prices soared because of the war due to the inability of the Gulf states to effectively bypass the Strait of Hormuz and export their oil.

As part of the efforts to bypass Hormuz, Saudi Arabia is now operating its East-West pipeline at a full output of about 7 million barrels per day, compared to about 2 million barrels per day before the war. The UAE was able to divert some of its exports through a pipeline to the port of Fujairah, a strategic city outside the Strait of Hormuz. In May, Abu Dhabi announced that it would accelerate plans for a second pipeline along the same route, which would double export capacity by 2027.

Oman, for its part, takes advantage of its location to market its ports in the Gulf of Oman, outside the Strait of Hormuz, as oil storage and export centers. In recent weeks, Iraq also began promoting a plan to expand its oil pipeline.