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European Oil Markets
20JUL

Trump declares the Iran deal over

2 min read
10:00UTC

Trump called the interim Iran agreement over and a waste of time, while Tehran said US and Israeli actions had gutted it; neither side has formally withdrawn.

EconomicDeveloping
Key takeaway

Trump calls the deal over and Iran calls it violated, yet neither has formally torn it up.

President Donald Trump said the interim agreement with Iran is "over" and "a waste of time dealing with them" after the 7 July strikes and Iran's retaliation, while adding that negotiations would continue. 1 The agreement in question is the 18 June Memorandum of Understanding (MoU), a 14-point ceasefire-track text the two sides were still negotiating in Doha last week. Trump's words have carried this message for 120 days; this time a signed licence revocation sits behind them.

Iran's foreign ministry said US and Israeli actions had "rendered key and fundamental elements of the agreement to end the war ineffective". 2 Chief negotiator Mohammad Ghalibaf called both the strikes and the oil-waiver revocation "major violations" of the MOU, putting the financial instrument alongside the kinetic one in Tehran's own complaint. 3 Spokesman Esmaeil Baghaei neither claimed nor denied the Al Rekayyat strike, instead invoking Clause 5 of the memorandum to assert an Iranian right to administer Hormuz routing . 4

Neither side has formally withdrawn from the memorandum both were negotiating in Doha, where Trump, Baqaei and Qatar's spokesman gave three contradicting accounts of the same talks and Doha itself billed the round as positive progress . Each capital is now retiring verbal tools for signed ones: Washington swaps Truth Social posts for a licence revocation, Tehran swaps anonymous IRIB framing for a named-spokesman treaty claim. The next Doha round stays paused with no firm late-July date fixed despite Pakistani expectations of one , so the memorandum is decaying rather than dying, and the 17 July licence cliff now arrives before any diplomacy resumes.

Deep Analysis

In plain English

The Memorandum of Understanding, or MoU, is a 14-point agreement reached on 18 June between the US and Iran that was meant to wind down the war, a written understanding rather than a ratified treaty. President Trump said the agreement was 'over' and 'a waste of time' after the day's strikes and oil-waiver revocation. Iran's foreign ministry said US and Israeli actions had made key parts of the deal ineffective, and Mohammad Bagher Ghalibaf, the speaker of Iran's parliament, called the day's events 'major violations' of the MoU. Neither side has formally withdrawn from the agreement in writing; both are simply saying, in different words, that it no longer functions.

Deep Analysis
Root Causes

The MoU has no enforcement mechanism written into its 14 points; unlike the JCPOA's IAEA verification architecture, it relies entirely on both governments' continued political willingness to reference it, which is why either side can call it ineffective without triggering a formal breach process.

Ghalibaf's move to frame the oil-waiver revocation and strikes together as violations serves a parliamentary function: the Majlis voted 221-0 in April to suspend IAEA cooperation, and casting the MoU as US-violated first gives hardliners in that body grounds to block future civilian-negotiated re-engagement without appearing to reject diplomacy outright.

What could happen next?
  • Risk

    Neither side formally exiting the MoU while both call it dead risks a legal vacuum where future strikes or sanctions carry no agreed reference point for de-escalation.

  • Precedent

    Ghalibaf's parliamentary framing echoes the Majlis's earlier unilateral IAEA suspension, suggesting Iran's legislature, not its foreign ministry, now controls the diplomatic off-ramp.

First Reported In

Update #149 · The first thing Washington signed on Iran: a revocation

ABC News· 8 Jul 2026
Read original
Different Perspectives
Kuwait
Kuwait
Kuwait absorbed the Iranian strike that knocked generating units offline at a combined power-and-desalination plant on 17 July, the event that finally moved freight and insurance in lockstep with Brent. The strike hit essential civilian infrastructure, not a trading desk's benchmark.
Asian buyers (Singapore)
Asian buyers (Singapore)
Singapore's middle distillates rose 12% month-to-date to 8.91m barrels and fuel oil passed 19m barrels on a 105% net-import surge, buyers retaining barrels as the East-West arbitrage window narrows. Cargoes are being stockpiled ahead of further Hormuz-driven freight repricing rather than released west.
Austria (Coreper holdout)
Austria (Coreper holdout)
Vienna is blocking the same package over roughly EUR 2bn of frozen Russian assets earmarked for Raiffeisen, a domestic banking dispute with no connection to the oil cap racing toward its 23 July expiry. The linkage forces the whole package to wait on a bilateral compensation fight.
Greece (Coreper holdout)
Greece (Coreper holdout)
Athens is holding the 21st sanctions package at the 22 July Coreper vote over Russian LNG re-export rights, a condition unrelated to the oil price cap itself, leaving the $44.10 freeze one day from expiry without a deal. Greece's own tanker registry gives it a direct stake in how any shadow-fleet measures are drafted.
Marine underwriters (Gulf war-risk)
Marine underwriters (Gulf war-risk)
Hull war-risk cover for Hormuz transits widened to a 3-10% band on 17 July with 5% the emerging norm, up from a 3-4% baseline set in late June, the first repricing in six weeks to track a flat-price move rather than lag it. Cover resets on actuarial evidence of loss, not on diplomatic or price signals.
Money managers (CFTC-tracked)
Money managers (CFTC-tracked)
The CFTC's week-to-14-July snapshot, released 17 July, showed WTI managed-money net long collapsing 69% to 19,783 contracts and a standalone 60,141-contract net short on Brent Last Day (NYMEX). Both readings predate the Kuwait strike and the 20 July escalation, so any covering since is not yet visible in public data.