Trump Rejects Iran MoU Extension as US Claims Control of Strait of Hormuz

US President Donald Trump has rejected extending a memorandum of understanding (MoU) with Iran, as the 60-day period covered by the agreement expired without a broader peace deal. The development comes amid a deepening standoff over the Strait of Hormuz, one of the world’s most important energy shipping routes.

Trump said Washington was not seeking an extension and urged Iran to surrender, while insisting that Tehran must agree to what he considers an acceptable agreement. The June MoU had been intended to halt military operations and provide time for negotiations involving Iran’s nuclear program, sanctions and access through the Strait of Hormuz.

Iran Rejects US Pressure

The collapse of the MoU has increased the risk of a renewed military escalation. Iran has warned that it could move to a “fully offensive” posture if diplomatic efforts fail, particularly over the dispute surrounding the Strait of Hormuz.

Iran and Oman have continued discussions aimed at establishing arrangements that could allow commercial shipping to resume through the strategic waterway. Washington, however, has opposed an arrangement that does not meet its conditions for reopening the strait.

Trump has also threatened military action against Oman if it interferes with US efforts, escalating tensions with a country that has traditionally played a mediating role between Washington and Tehran.

Strait of Hormuz Remains at the Center of the Crisis

The Strait of Hormuz is crucial to global energy markets because a significant share of the world’s oil and LNG shipments normally passes through the waterway. Shipping activity has fallen sharply during the conflict, increasing concerns about energy supplies and prices.

The United States says it has established control over the strategic waterway, while Iran continues to challenge Washington’s position. The competing claims have made the reopening of the strait one of the most difficult issues in negotiations.

Oil prices have already reacted to the uncertainty. Brent crude settled above $90 a barrel on Monday as markets assessed the possibility of prolonged disruption to shipping and energy supplies.

US-Iran Talks Face Uncertain Future

Trump has said his administration remains in discussions with representatives of Iran’s Islamic Revolutionary Guard Corps (IRGC), although the IRGC has denied that such talks are taking place.

With the MoU now expired and neither side appearing ready to compromise on key demands, the immediate future of US-Iran diplomacy remains uncertain. Any further escalation around Hormuz could have consequences far beyond the region, particularly for global oil markets and international shipping.