A flawed Iran deal could give investors second thoughts 

News that the U.S. and Iran were about to sign a memorandum of understanding to end their conflict was greeted favorably by investors. The price of oil for West Texas Intermediate tumbled below $80 a barrel, and the U.S. stock market surged to a record high. But it remains to be seen whether investors will remain upbeat amid widespread criticism of the subsequent deal. 

In announcing it, President Trump said he authorized the toll-free opening of the Strait of Hormuz, as well as the immediate removal of the U.S. naval blockade. Trump then declared: “Ships of the World, start your engines. Let the oil flow!”

The deal will extend a ceasefire for 60 days, during which the two parties will negotiate a final agreement. It creates a phased step-by-step approach that begins with the opening of the strait and postpones issues related to ending Iran’s nuclear capability.  Although it creates incentives for Iran to comply, there are also many ways the deal could unravel.

The Wall Street Journal published an annotated analysis of the U.S. proposal that was presented at the G7 meeting in Paris. It reports that many conservatives who supported the war fear Trump is losing at the negotiating table by offering concessions up front.   

If Iran meets U.S. requirements, it will get eventual access to billions in dollars from frozen assets and will be able to tap a $300 billion development fund that will be created. Meanwhile, sanctions on Iran are being lifted, and it has already begun to send tankers through the........

© The Hill