US considers USD 20bln cash-for-uranium deal with Iran, Axios reports, citing sources
- The US and Iran are negotiating over a three-page plan to end the war, with one element under discussion being that the US would release USD 20bln in frozen Iranian funds in return for Iran giving up its stockpile of enriched uranium, according to two US officials and two additional sources briefed on the talks.
- The talks are expected to take place in Islamabad, likely on Sunday, according to a source familiar with the mediation efforts.
- The MOU also deals with the Strait of Hormuz, though the sources said there are still significant gaps on that issue.
- US was ready in an earlier stage of the negotiations to release USD 6bln for Iran to purchase food, medicine and other humanitarian supplies. The Iranians demanded USD 27bln. The latest number discussed by the US and Iran is USD 20bln, the sources said. One U.S. official said that was a US proposal. The other US official described the cash-for-uranium concept as "one of many discussions."
Context
The potential cash-for-uranium deal indicates a significant move in US-Iran relations, especially as the two sides seek to negotiate broader peace terms. If successful, this may reduce tensions surrounding Iran's nuclear ambitions and impact energy markets, particularly oil prices, given Iran's influence on the Strait of Hormuz. Traders should consider the implications for commodities markets, as a change in Iranian oil flow could shift supply dynamics in the market.
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