I sailed through the Strait of Hormuz many times in my 21 years of naval service. Though we were at peace at the time, I stared down the barrels of Iranian ships, aircraft and missiles. I saw with my own eyes the threat and harassment that the Iranian navy caused to international shipping. I think it is a good thing that the Iranian navy is now on the bottom of the sea. I was proud of our service members as they fought hard and well. I mourned with the nation as we lost thirteen of our own.
It is, therefore, especially painful to read the terms of the Memorandum of Understanding that President Trump signed with Iran to end the war.
Prior to Trump’s 2026 war, Iran had zero administration over the strait. Any country in the world could sail any ship it wanted through the strait at no cost. No country even notified or coordinated with the Iranians in any way whatsoever before transiting the strait.
No longer. Shockingly, Point 5 of the Memorandum of Understanding specifies that Iran will use “its best efforts for the safe passage of commercial vessels with no charge for 60 days only.” This obviously gives the option for future Iranian fees after 60 days. Even worse, the U.S. agrees that, “Iran will conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz.”
In other words, Iran has gotten the U.S. to agree, in writing, to give Iran the option to charge fees for safe passage after 60 days, and that Iran can define itself a role in the future administration of a waterway that was previously free and open to the world.
This hands the Iranians a future stranglehold on the world’s economy. We have already seen what happens to Americans’ spending power if Iran has such power. The U.S. has now formalized Iran’s option for this.
Frighteningly, Point 6 of the agreement specifies that “The United States of America undertakes with regional partners” to provide “at least $300 billion for the reconstruction and economic development” of Iran. Let’s put that amount in perspective.
Iran estimates that it suffered $270 billion in damage from the war. With $300 billion, Iran stands to achieve a net profit from the war of $30 billion dollars. That profit is enough to rebuild their navy many times over. The most expensive warship in history is the American Ford class aircraft carrier and Iran could buy two with $30 billion dollars. Iran could buy a dozen U.S. guided missile destroyers whereas before 2026 Iran didn’t possess a single ship with similar capability. Thanks to the Memorandum of Understanding, the future looks bright for the Iranian military.
This doesn’t even count the economic benefits of future sanctions relief that Trump has promised Iran under Point 7.
Compare that $30 billion profit for Iran to the over $130 billion that the war has cost the United States. That doesn’t include the cost of combat losses in aircraft and destroyed U.S. base facilities which may run an additional $50 billion. No one, certainly not Iran, is going to reimburse American taxpayers for any of that. The lives of the Americans who were killed were priceless.
The U.S. did not receive much for these concessions. In Point 8, Iran promised not to build a nuclear weapon and to negotiate further. This is the exact same promise that Iran has made since 1968. The Memorandum of Understanding does not specify a single hard measure to ensure Iran doesn’t get a nuclear weapon.
Iran gained the option for future control over the strait, including fee charging, and $30 billion in free-and-clear profit, in exchange for Iran allowing shipping to pass and for a song we’ve already heard the Iranians sing many, many times.
The agreement with Iran turns a hard-fought battlefield victory into a strategic defeat for the United States. Congress should assert its Article II constitutional power in which the president must obtain the advice and consent of two thirds of senators to conclude treaties. Americans should write to their senators to demand this.
Seddon retired from the U.S. Navy after 21 years of service as a surface warfare officer and now writes on military and veteran issues. He lives in Santee.