Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
23JUL

Trump: blockade stays till deal signed

3 min read
19:27UTC

Trump set his most specific reopening condition yet on Sunday: the naval blockade stays "until an agreement is reached, certified, and signed." No instrument accompanied the post. The blockade holds regardless of the deal talk.

EconomicDeveloping
Key takeaway

Trump's signed-deal condition keeps the blockade in force and rules out a verbal memorandum.

Donald Trump posted on Truth Social on Sunday 24 May that the US naval blockade of the Strait of Hormuz will stay "in full force and effect until an agreement is reached, certified, and signed" 1. He added that talks were "proceeding in an orderly and constructive manner" and told his negotiators "not to rush into a deal" because "time is on our side." No executive order or presidential instrument accompanied the post.

Trump had earlier presented the negotiation as nearly settled ; the 24 May post adds an operational condition rather than fresh optimism, and its value lies in what it commits the United States to do rather than say. "Certified, and signed" sets a documentary bar the talks have not met: it rules out the partial or verbal memorandum structure the negotiations had been moving toward.

For the reader arriving cold: the blockade is the US Navy enforcing closure of the strait, the world's busiest oil chokepoint, through which roughly a fifth of seaborne crude moves. Trump's condition means the ships stay regardless of how warm the diplomatic language gets, until a signed text exists. That is why a deal can be reported as close while the strait stays shut.

The condition also bears directly on the sequencing fight. Iran wants its frozen assets freed before it concedes anything operational, while Trump now wants a signed agreement before he lifts the blockade. The two preconditions point in opposite directions, and a verbal understanding satisfies neither. On the day, the only concrete US act was the wording of a social-media post, and the blockade it described needed no signature to stay in force.

Deep Analysis

In plain English

President Trump posted on 24 May that the US naval blockade of the Persian Gulf will stay in place until a deal with Iran is reached and actually signed, agreed by both sides, and formally certified. He also told his negotiators to take their time. This rules out a looser kind of deal where both sides announce they have agreed without writing it down. Iran and the US had been trying to reach exactly that kind of informal arrangement. Trump's post says a signed document is required before the blockade ends, which raises the bar significantly for the ongoing talks.

Deep Analysis
Root Causes

The absence of signed instruments across 87 days of conflict traces to a constitutional and legal-reversibility calculation. The United States War Powers Resolution (1973) requires the president to submit a written report to Congress within 48 hours of committing armed forces.

Trump submitted no such report; the administration has argued the operation falls under existing Authorizations for Use of Military Force. A 'certified and signed' MOU, if it constitutes a ceasefire terminating existing hostilities, would create a legislative record the White House has so far avoided.

Additionally, any signed MOU that includes US sanctions relief requires OFAC to publish a general licence, which becomes a permanent public record challengeable under the Administrative Procedure Act. Trump's preference for Truth Social over signed instruments reflects the legal-reversibility advantage of executive non-commitment: no signed text means no APA challenge, no Senate ratification hearing, and no precedent that constrains future executive action toward Iran.

What could happen next?
  • Consequence

    Any informal MOU structure, including the 60-day framework Ghalibaf and Vance had reportedly developed, requires revision into a formally signed instrument before the blockade can lift under Trump's posted condition.

    Immediate · Assessed
  • Risk

    Iran's Khamenei Council may interpret 'certified and signed' as a demand for a treaty-level instrument, which would require US Senate ratification that no Republican senator has indicated willingness to provide.

    Short term · Suggested
  • Precedent

    A signed MOU, once deposited, becomes the first Iran-specific signed US executive instrument of the entire 87-day conflict, filling the zero-instrument gap documented across every prior post.

    Medium term · Assessed
First Reported In

Update #107 · Two markets, two prices on one Iran deal

Al Jazeera· 25 May 2026
Read original
Different Perspectives
US money managers (CFTC-tracked)
US money managers (CFTC-tracked)
US money managers had trimmed WTI net long positioning into July's rally, doubting the Hormuz premium would hold without freight or war-risk confirmation, and the crude stock build reported for the week to 17 July gives that scepticism a fundamentals basis. The 25 July CFTC data will show whether Brent's move above $100 changed their calculus.
Asian distillate buyers (Singapore)
Asian distillate buyers (Singapore)
Singapore's distillate holders kept retaining middle-distillate barrels as the East-West arbitrage window narrowed further this week, a pattern that sharpened as Fujairah light distillates hit a record low. Cargoes are being held rather than released west into the tightening Mediterranean market.
Bulgaria
Bulgaria
Bulgaria secured the removal of Lukoil founder Vagit Alekperov and Patriarch Kirill from the 21st package, with President Rumen Radev calling a personal listing 'shooting ourselves in the foot'. Sofia is protecting its position in Lukoil's EUR 3bn compensation claim over the 2023 Neftohim Burgas nationalisation.
Russia
Russia
Russia loses the roughly $14 a barrel of legal headroom the price-cap formula would have released toward $58, even as Urals continues trading below Moscow's $59 budget floor. The shadow-fleet insurance workaround that lets sanctioned crude clear above $44 in practice remains untouched by the freeze itself.
European Union
European Union
The EU adopted its 21st sanctions package on 23 July, freezing the $44 Russia oil cap for 12 months rather than letting the formula drift it toward $58, and listed shadow-fleet support vessels for the first time. The package cleared only after three failed Coreper votes.
Marine war-risk underwriters (Lloyd's-linked syndicates)
Marine war-risk underwriters (Lloyd's-linked syndicates)
War-risk syndicates lifted southern Red Sea hull premiums 150% to about 0.75% of hull value after the 20 July blockade declaration, still a seventh of the roughly 5% Hormuz band. Underwriters reset on realised loss, not declared threat, so the 23 July Encelia and Layla strikes set up the next re-mark.