U.S. President Donald Trump announced on Wednesday that the memorandum of understanding with Iran aimed at solving the conflict had ended, stating that he does not wish to pursue engagement with Tehran. Trump indicated that although U.S. officials might continue negotiations, he doubted they would achieve any results, signaling he personally considered the ceasefire efforts concluded.
The temporary accord, brokered by Pakistan, had established a 60-day period for negotiations intended to lead to a lasting agreement. However, the indirect discussions hosted in Qatar recently concluded without progress.
Tensions escalated further when the United States launched airstrikes on Iran early Wednesday. These strikes came shortly after Washington rescinded a license permitting the sale of Iranian oil, a move officials described as retaliation for Iranian strikes on vessels in the Strait of Hormuz. In response, Iran targeted locations in Bahrain and Kuwait with its own attacks.
The now-revoked license from the U.S. Treasury had previously authorized sales of Iranian crude oil, petrochemicals, and petroleum products until August 21. The U.S. has now imposed a July 17 deadline for winding down related transactions.
This series of attacks disrupted shipping operations in the Strait of Hormuz, threatening critical fuel shipments linked to global energy supplies.
The escalation took place during the mourning ceremony for the death of Iranian Supreme Leader, Ayatollah Ali Khamenei, who was killed on February 28 at the outset of the conflict. Negotiations toward a final settlement—with plans to address the full reopening of the strait and Iran’s nuclear program—had been expected to start after Khamenei’s burial. However, renewed violence has cast uncertainty over the future of these discussions, although neither the U.S. nor Iran has formally withdrawn from talks.
In reaction to the developments, West Texas Intermediate crude rose by nearly 6 percent to $74.65 per barrel, while Brent futures increased by around 5.8 percent to reach $78.44 per barrel.
