Draft Iran nuclear deal targets enrichment cut, waivers expected

Quantum Commodity Intelligence – A draft agreement between Iran and world powers would involve a phased return to the 2015 nuclear deal, with both sides initially taking interim steps to curb enrichment and lift some sanctions, according to news agency reports.

Sanctions against oil the oil industry are unlikely to be lifted immediately, but the draft deal includes waivers on a limited volume of oil exports.

The first phase will include the unfreezing of some $7 billion in Iranian funds stuck in South Korean banks under US sanctions and the release of Western prisoners held in Iran.

Eventually, Iran will return to core nuclear limits like the 3.67% cap on enrichment purity, diplomats said, and sanctions will begin to be lifted.

The new agreement entails the US granting waivers on sanctions against the Islamic Republic's oil sector rather than lifting them outright.

This will require the renewal of waivers every few months, as was done with the 2015 deal.

Brent crude prices have retreated from Monday's highs of around $96.50/b on increasing optimism of a deal being struck. 

According to the diplomats, the time between the initiation of the deal and when sanctions are lifted is not yet decided but is estimated to be between one and three months.

Iran is also seeking a guarantee that the US will not be able to withdraw unilaterally from the agreement again, which would require an act of Congress. It also demands promises that the US will halt pressuring companies not to trade or invest in Iran.