The Trump administration has repeatedly told mediators it does not intend to reaccept the terms of a memorandum of understanding reached with Iran in June, according to The Wall Street Journal, which cited people familiar with the matter. The report said President Donald Trump has shifted toward using economic pressure on Iran and is willing to wait to see whether that strategy works.
The June arrangement had been expected to trade sanctions relief and access to Iranian funds frozen overseas for the reopening of the Strait of Hormuz, along with talks on the nuclear issue and ending the war. According to the report, the deal collapsed weeks later after Iran attacked ships.
Iran, for its part, is demanding that Washington resume implementation of the June agreement. Tehran also argues that Article 5 of the deal effectively recognized Iran’s right to decide the conditions for reopening the Strait of Hormuz. The Islamic Revolutionary Guard Corps said the strait would be reopened only if the US restores the agreement, grants waivers for Iranian oil sales, and ends the naval blockade. Pakistan, Oman, and Qatar have recently tried to mediate, but progress has been limited.
The Trump administration has repeatedly told mediators it does not plan to reaccept the terms of the memorandum of understanding reached with Iran in June, according to The Wall Street Journal, citing people familiar with the matter.
The report said Donald Trump is now leaning on economic pressure against Iran and is willing to wait and see whether that approach works.
June arrangement broke down within weeks
Under the June deal, the US was expected to ease sanctions and allow Iran to access funds frozen overseas in exchange for reopening the Strait of Hormuz and starting negotiations on the nuclear issue and an end to the war.
That arrangement fell apart weeks later after Iran attacked ships, the report said.
Iran demands US resume implementation
Iran is insisting that the US resume implementation of the June agreement. Tehran also holds that Article 5 effectively recognized Iran’s right to determine the conditions for reopening the Strait of Hormuz.
The Islamic Revolutionary Guard Corps said Iran would reopen the strait only if the US restores the agreement, grants waivers for Iranian oil sales, and ends the maritime blockade.
Mediation efforts have made limited progress
Pakistan, Oman, and Qatar have recently carried out mediation efforts, but progress has been limited, according to the report.
Analysts cited in the report said the memorandum of understanding reached in June has effectively lapsed, and both sides are now preparing for an escalation.
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