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Trump Cancels MOU After Major US-Iran Strike Exchange Over Strait of Hormuz; Oil Sanction Waiver Suspended

As tensions in the Middle East continue to rise, the situation between the US and Iran has escalated significantly. With the latest military actions and political declarations, both sides appear to be gearing up for further confrontations. Here’s a summary of the latest developments surrounding the ongoing conflict.

Following a series of aggressive exchanges, both the US and Iran ramped up their military posturing. In a statement during the NATO summit in Ankara, President Trump declared the ceasefire agreement with Iran to be “over,” expressing his frustration with ongoing negotiations. As reported by Aljazeera:

According to live updates:

  • President Trump announced that the ceasefire agreement with Iran is “over” and criticized further negotiations as a “waste of time.”
  • His remarks came after the US launched a series of “powerful strikes” against Iran in response to attacks on three vessels in the Strait of Hormuz, which included both Qatari and Saudi tankers.

    • Trump on the MoU: ‘I think it’s over’

    At the NATO summit, Trump stated that the memorandum of understanding (MoU) with Iran is “over,” expressing futility in engaging with the regime.

    Key points from Trump’s comments include:

    • “We hit them [Iran] very hard last night.”
    • “I told them that every time you hit, we hit, and, of course, they’re dirty players, so they go after everyone, probably including me.”
    • “We don’t like them. I don’t like them. They’re evil people, and it’s the denuclearisation of Iran. And we’re going to denuke it.”
    • “I’m not happy with NATO because of the fact that they didn’t want to help us with the number one state-sponsored terror, that’s Iran.”

A clip showcasing Trump’s assertion:

Trump’s remarks also extended to Spain, where he threatened to cut off all trade. Later feeds implied that his declaration might be a tactic:

“I might let my wonderful negotiators keep talking.” Is this tough rhetoric from Trump aimed at establishing boundaries, or does it signify a complete dismissal of the recent MoU agreed just weeks prior?

Discussions had resumed following earlier clashes but were disrupted for national mourning ceremonies. As illustrated by Iran International on Twitter, a statement from an Iranian official indicated that:

The Supreme National Security Council has yet to decide whether to continue talks.

Some Iranian lawmakers accused the US of violating the MoU by rejecting Iran’s role in managing maritime traffic through the Strait of Hormuz. Alaeddin Boroujerdi, a member of the National Security and Foreign Policy Committee, stated:

The agreement stipulated that shipping would occur “under the supervision and management of the Islamic Republic of Iran, specifically the IRGC Navy.” Boroujerdi added that the Supreme National Security Council would ultimately determine whether negotiations with the US would continue following the US strikes.

At this juncture, evidence suggests Iran initiated the latest series of attacks in retaliation for US actions on their territory. PressTV reported that the IRGC targeted 85 US military sites in an initial counter-offensive, even claiming to have downed an MQ-9 drone attempting to interfere.

The Islamic Revolution Guards Corps (IRGC) asserted that they “destroyed 85 US military installations” in Bahrain and Kuwait in response to American aggression.

They reported strikes on Port Salman, aligned with the US Fifth Fleet, and Ali Al Salem Air Base in Kuwait.

According to Aljazeera’s updates about 7 hours ago:

  • Air raid sirens sounded multiple times in Bahrain as Iran announced retaliatory strikes over US bombardment.
  • Kuwait confirmed hostile drone and missile attacks.
  • The IRGC claimed to have “destroyed 85 US military sites” in Bahrain and Kuwait.
  • US Central Command (CENTCOM) noted they hit over 80 targets within Iran in retaliation for the attacks on vessels.
  • Reports indicate that a significant number of the strikes targeted civilian infrastructure, including fishing piers and a telecommunications tower, resulting in injuries to several individuals following a strike on Sirik.

    • In the chaotic information landscape, claims of a fourth tanker being struck have surfaced, allegedly reported by UKMTO, although confirmation remains pending:

    Recent reports from Middle East Online suggest Iran’s offensive strategy continues:

    Explosions heard in Bahrain as Iran states any site aiding US operations is a ‘legitimate target’

    Multiple explosions were reported across Bahrain, following air raid alarms, signaling a potential attack.

    Authorities heard “loud” blasts in the northern region of the island, marking the first incident since Bahrain intercepted Iranian drones and missiles on June 28.

    The Iranian military issued a warning, declaring that any site facilitating US hostilities would be deemed a “legitimate target.”

    Trump’s intense need to assert control over narratives may have prodded him to act preemptively in light of Iranian indicators suggesting a withdrawal from negotiations. Previously, Trump had unleashed tweets showcasing US military actions, further intensifying the situation.

    A Bloomberg update indicated oil prices surged by over 6%. From the report, “Trump Says US Ceasefire With Iran Is ‘Over’ After Strikes”:

  • President Trump’s declaration of the termination of the ceasefire with Iran elevates the risk of renewed military engagement between the nations.
  • The remarks came after the US commenced a fresh wave of strikes against Iranian targets and rescinded a waiver permitting the sale of Iranian oil, in retaliation for attacks on ships in the Strait of Hormuz.
  • This development signifies a severe threat to the interim peace deal, with the US attributing blame to Iran for maritime attacks, while Tehran argues that the strikes and waiver cancellation infringed upon their agreement.

    • Despite prior indicators suggesting oil prices were stabilizing, recent tensions have revived upward trends.

    Market reactions have not been favorable:

    Despite the upheaval, a Bloomberg article mentioned that “a US official stated negotiators would continue working towards a final agreement,” indicating that strategies could still evolve. Meanwhile, Secretary of Defense Pete Hegseth cancelled his visit to Israel, indicating a heightened reflex to the crisis.

    The forthcoming hours will be critical in determining whether the US opts for further displays of military strength or decides to respond with targeted strikes. Concurrently, the US has also suspended the sanctions waiver on Iranian oil sales, effective July 17. Iran has signaled this moves constitutes yet another breach of their agreement, compounding existing tensions.

    An Iranian official remarked that while the cancellation of oil waivers is significant in terms of negotiations, it doesn’t substantially hinder Iran’s ability to export oil, particularly to nations like China, which have historically been willing to buy Iranian oil regardless of sanctions.

    As the situation unfolds, it remains to be seen how geopolitical dynamics shift and what implications this holds for both American and Iranian interests. The ongoing crisis highlights the fragility of diplomatic agreements and the potential for escalation in the region.

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