Iran has set a fresh deadline for the United States to implement the terms of a June memorandum of understanding (MoU), warning that tensions could escalate in the Strait of Hormuz and across the region if diplomatic efforts fail. The warning came as the 60-day period under the agreement expired on Monday, with peace talks between US and Tehran at a standstill.
An Iranian official told Reuters that “within the short period of a few weeks set by Iran, all the agreement’s provisions must be implemented by the US”. The official said this would be a “precondition for further negotiations with the US”, adding that mediators would convey Tehran’s deadline to Washington and regional countries.
The official also warned that Iran was prepared to take military action if diplomacy failed, saying Tehran would conduct a “timely and precise” attack to break the US naval blockade.
How the MoU was supposed to end the war
The MoU was signed on June 17 after high-level talks hosted by Pakistan. It was intended to establish an immediate ceasefire and give the US and Iran 60 days to negotiate a wider peace agreement.
Under the deal, both sides agreed to the “immediate and permanent termination of military operations on all fronts”. It also included plans to reopen the Strait of Hormuz, while the US agreed to lift sanctions, allow Iranian oil exports and provide access to frozen Iranian funds.
The agreement also proposed a US-backed reconstruction and economic development package worth at least $300 billion for Iran. Iran reaffirmed that it would not seek to develop nuclear weapons and agreed to negotiate over issues including uranium enrichment as part of a broader final deal.
Strait of Hormuz became the key dispute
The agreement began to unravel because of disagreements over the Strait of Hormuz. The MoU said Iran would make arrangements for the “safe passage of commercial vessels with no charge” for 60 days. However, Washington and Tehran disagreed over which routes commercial vessels could use.
Iran wanted ships to follow a route closer to its coast, while Oman backed a route closer to Omani waters. Several vessels were later targeted after using routes that Iran considered unauthorised, turning the strait into the main flashpoint between the two sides.
Ceasefire collapsed within days
On June 25, the Singapore-flagged Ever Lovely was struck by a projectile while travelling near the Omani coast. Iran did not claim responsibility for the attack.
The US blamed Tehran, with Trump calling it “a foolish violation” of the ceasefire. Two days later, US Central Command said American aircraft had struck Iranian missile and drone storage sites and radar facilities. Iran condemned the strikes as a violation of the MoU and retaliated by attacking US military installations in the region.
Iran’s Islamic Revolutionary Guard Corps warned that “in the event of repeated aggression, our response will be more extensive than this”. By July 7, Trump declared that the agreement was “over”.
Iran and US remain far apart
Iran has repeatedly accused Washington of violating its commitments under the MoU and says it is no longer bound by its own obligations.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the 60-day deadline had become irrelevant because of the US violations.
“Due to the gross and widespread violation of the memorandum by the United States just a few weeks after it was signed, no talks were initiated,” Baghaei said. “As a result, the issue of a 60-day deadline became entirely moot.”
Trump reiterated on Monday that preventing Iran from developing a nuclear weapon remained his priority, saying: “The number one Goal is, and always will be, that Iran cannot have, in any way, shape, or form, a Nuclear Weapon.”
Trump raises stakes over Hormuz
Trump has also escalated his rhetoric over the Strait of Hormuz, warning Americans to prepare for continued high fuel prices because of the war. He said that “after we finish defeating Iran … pretty soon I’ll be declaring the Hormuz Strait a territory of the United States”.
Iran, meanwhile, has warned that further pressure over the waterway could trigger a wider confrontation. An Iranian official said Tehran must be prepared to “escalate tensions in the Strait of Hormuz and wider region” and be ready to make “difficult decisions”.
