Israel was not surprised by the full text of the U.S.-Iran memorandum of understanding revealed on Wednesday night, but officials in Jerusalem see it as a bad deal, even though Israel is not mentioned by name. Prime Minister Benjamin Netanyahu’s office stayed silent, while Israeli sources told ynet, “This is not what we hoped for.” The agreement is framed around 60 days of talks, but President Donald Trump said the deadline is not fixed, as long as “the Iranians behave well.”
Israeli criticism centers on several clauses. Under Article 10, the U.S. Treasury would immediately grant exemptions for Iranian crude oil, petroleum products, refined fuels and related services, including banking, insurance and shipping, until sanctions are lifted. Israeli officials say this effectively gives Iran billions of dollars while receiving little in return, especially because frozen assets could also be released later under Article 11. They argue Tehran’s economy was close to collapse and is now getting a lifeline.
Article 8 is seen in Israel as a troubling retreat because Iran does not commit to removing enriched uranium, only to diluting it on Iranian soil under IAEA supervision. Jerusalem had expected Tehran to refuse to hand over the material, but not to preserve enrichment rights. Article 1 links the war in multiple arenas, including Lebanon, and calls for an immediate and permanent end to military operations. Israel opposes tying the fronts together, but officials say no withdrawal is required before a final deal, and Trump has signaled there is room for flexibility. The next U.S.-led round of talks with Lebanon is due in Washington next week, and Israel expects more pressure to avoid attacks in southern Lebanon unless acting in self-defense.
Inside Israel’s security establishment, three demands were passed to political leaders on the Lebanon clause: preserve IDF freedom of action across Lebanon, maintain a buffer zone in the south, and keep southern Lebanon demilitarized. Israeli officials say Lebanon’s government also opposes the front-merging clause because it fears Hezbollah would gain immunity. Meanwhile, Iranian officials are publicly celebrating. Foreign Ministry spokesman Esmail Baghaei warned that continued Israeli “occupation” in Lebanon would violate the memorandum, and parliament speaker Mohammad Bagher Ghalibaf said Iran had beaten “America and the Zionist regime.” Israeli sources said Tehran is emerging as the winner politically, while the deal could still restrain its nuclear program for 10 to 15 years.
