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European Oil Markets
27JUL

Ghalibaf says Iran will not fold

2 min read
10:27UTC

Mohammad Bagher Ghalibaf, Iran's parliamentary speaker and chief negotiator, listed US breaches on X on 8 July and wrote 'we don't fold', the first senior official to call the memorandum violated on the record.

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Key takeaway

Iran's negotiator has declared the memorandum violated, though the parliament he leads never ratified it.

Mohammad Bagher Ghalibaf, speaker of Iran's parliament and its chief negotiator, posted on X on Wednesday 8 July listing what he called US breaches of the memorandum: interference with Iran's Hormuz arrangements, threats of further strikes, reinstated oil sanctions and attacks on southern Iran. 'We don't fold,' he wrote, declaring an end to what he called an era of bullying and extortion 1. He is the first named senior official, beyond the foreign ministry spokesman, to declare the memorandum violated on the record, and his statement lands days after Donald Trump called the deal over .

What Ghalibaf calls violated the Majlis never ratified. Iran's parliament was never asked to vote the Islamabad memorandum through as a treaty, which is why hardline MPs Abootorabi and Nabavian are threatening an Article 77 constitutional complaint rather than a withdrawal motion 2. The complaint would target the government for binding Iran to a text parliament never approved. The escalation runs through the executive and through public statements, not the parliamentary record.

Deep Analysis

In plain English

Mohammad Bagher Ghalibaf is the speaker of Iran's parliament (the Majlis) and was Iran's lead negotiator on the ceasefire deal with the US, known as the Islamabad memorandum. He has now said publicly that the US broke that deal and that Iran will not back down. Separately, two hardline members of parliament are threatening to use a constitutional rule, Article 77, to argue the deal was never legally binding in the first place because parliament itself never voted on it. Together, these moves suggest Iran's political establishment is hardening its position, alongside its military.

Deep Analysis
Root Causes

Article 77 of Iran's constitution requires the Majlis to ratify international treaties; the Islamabad memorandum was signed as an executive-level understanding, not a treaty, leaving hardline MPs Abootorabi and Nabavian a genuine constitutional lever to argue it never bound Iran domestically.

The succession crisis compounds the legal gap: with Mojtaba Khamenei absent from public view since his father's funeral and reportedly injured, no figure with unquestioned authority has stepped in to overrule Ghalibaf's reading of the memorandum, leaving the Majlis speaker's interpretation effectively unchallenged.

What could happen next?
  • Consequence

    If the Article 77 complaint advances, it gives Iran's negotiators formal domestic cover to abandon the memorandum's terms without appearing to break faith with Washington unilaterally.

Sources:bne IntelliNews
Mentions:Mohammad Bagher Ghalibaf →Majlis →Article 51 →France →Donald Trump →Iran →Germany →US Senate →Tehran →Middle East Institute →Alex Vatanka →Mojtaba Khamenei →Islamabad →
First Reported In

Update #150 · Second US strike wave, first heavy toll

bne IntelliNews· 9 Jul 2026
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Causes and effects
This Event
Ghalibaf says Iran will not fold
With its chief negotiator now calling the memorandum violated, Tehran has taken its hardest public line since June, even though parliament never ratified the deal.
Led to
Trump declares the Iran deal over
Ghalibaf's public breach declaration follows Trump's statement that the deal was over.
Occurred 7 Jul 2026
Read story →
Different Perspectives
Asian buyers (India, Japan, China, South Korea)
Asian buyers (India, Japan, China, South Korea)
Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.
Russia / Lukoil
Russia / Lukoil
Moscow loses the roughly $14-a-barrel legal headroom the frozen price-cap formula would otherwise have released toward $58, even as Urals trades below Russia's own $59 budget floor. The shadow-fleet insurance workaround the freeze leaves untouched remains the actual route sanctioned crude clears above $44 in practice.
European Union / Council
European Union / Council
Brussels adopted its 21st sanctions package on 23 July, letting boarding states confiscate and sell shadow-fleet cargo outright and freezing the G7 price cap's automatic adjustment to mid-2027, converting indefinite tanker storage into recoverable value for enforcers.
Freight and tanker desks
Freight and tanker desks
The Baltic Exchange's TD3C VLCC benchmark, most desks' reference for Gulf freight, prices a single-vessel voyage while Saudi shippers now pay for two Suezmax charters at roughly double the transit time. That gap leaves any book hedged purely on TD3C carrying unrecognised Suezmax basis risk on the bulk of Saudi rerouted volume.
Mediterranean refiners (Sines, Trieste, Augusta)
Mediterranean refiners (Sines, Trieste, Augusta)
Refiners already facing aframax rates up 198% month-on-month now watch Ain Sokhna draw 23% of Yanbu's rerouted crude through the same SUMED corridor they lean on for product backfill. Fujairah and ARA stocks near record lows leave little room to absorb a thinner Suez product flow.
Saudi Arabia
Saudi Arabia
Riyadh has rerouted its entire western-coast crude book through Yanbu and Suez since the 23 July Bab el-Mandeb embargo, absorbing a roughly $2m-per-voyage Suezmax premium on every diverted cargo. The kingdom's fiscal breakeven near $108 a barrel makes that freight cost, not the blockade itself, the more durable drag on export economics.