Trump dumps Iran deal, doubles down on sanctions as Hormuz crisis deepens
The US President Donald Trump’s led administration has reportedly abandoned efforts to revive a June memorandum of understanding with Iran, leaving mediators without a framework for restarting negotiations over reopening the Strait of Hormuz.
As first reported by The Wall Street Journal and The Times of Israel, President Donald Trump now favours intensified economic pressure, believing sanctions could force Tehran to accept tougher US terms on its nuclear programme and access to the strategic waterway.
Trump said there are currently no US-Iran talks and warned that new sanctions could extend to Chinese banks dealing with Tehran.
The measures target Iran’s digital assets, technology, gold, aviation and shipping sectors, with potential secondary sanctions affecting companies in the UAE, Hong Kong, China, Singapore and Europe involved in Iranian oil transportation.
The June agreement, negotiated with Vice President JD Vance’s involvement, envisaged reopening the Strait of Hormuz and beginning nuclear negotiations in exchange for sanctions relief and access to frozen Iranian assets. It collapsed within weeks after Iran attacked ships.
Iran’s Revolutionary Guard says the strait could reopen if Washington returns to the memorandum and accepts Tehran’s conditions.
Former Mossad chief David Barnea urged intensified economic, diplomatic and operational pressure until Iran’s regime falls.
The uncertainty triggered market jitters, pushing Brent crude above $88 a barrel as equities weakened.
