US President Donald Trump said on Wednesday that the memorandum of understanding (MoU) reached with Iran is not final. He warned that the US could resume military action if Tehran fails to meet American expectations, reported Reuters.
Trump’s remarks came a day before the scheduled signing of the agreement between United States and Iran. Earlier, on June 15, both nations signed a preliminary memorandum of understanding that laid the groundwork for the final deal.
Speaking alongside Egyptian President Abdel Fattah el-Sisi at the G7 summit in France, Trump said the agreement remains conditional and could collapse if he is dissatisfied with Iran’s conduct.
“It’s a memorandum of understanding. And if I don’t like it, we’ll go back to shooting at them, dropping bombs on their heads. If I don’t like it, if they don’t behave, we’ll go right back to dropping bombs right smack in the middle of their head, OK?” Trump said.
Meanwhile, oil prices rose slightly following Trump’s remarks on “bombing” Iran. Brent crude prices increased by 54 cents, or 0.7%, to $79.50 a barrel, while US West Texas Intermediate (WTI) crude gained 49 cents, or 0.6%, to $76.54 a barrel by 1208 GMT, reported Reuters.
However, the gains remained limited and both benchmarks stayed near their lowest levels in three months. Prices came under pressure after the International Energy Agency (IEA) warned that the global oil market could face excess supply next year, reported Reuters.
US to contribute funds for Iran’s construction?
Trump made it clear that the memorandum of understanding is only a framework, not a final agreement. He said the deal still depends on Iran’s future actions and compliance with US expectations.
The president also dismissed reports that the agreement includes immediate sanctions relief for Tehran. He said the issue of sanctions would be addressed at a later stage.
Trump also rejected reports that the United States would contribute funds for Iran’s reconstruction. “We’re not putting up 10 cents,” Trump said. “We are not investing, and we do not have a fund,” he said.
He also said he has not asked Gulf countries to finance projects in Iran. “I’m not asking Gulf countries to invest in Iran, but if they do it, fine,” he said. “I would say they won’t be doing it for a while until they find out the behaviour of the Iranians,” he added.
What Trump said about deal
Despite his warning that military action could resume, Trump repeatedly described the framework agreement as strong. “The US-Iran framework deal is very strong,” he said. “Nobody knows what it is, but it’s very strong,” he added.
Trump spoke about financial markets as evidence that investors believe tensions in the Middle East are easing. “Who’s really happy is the markets,” he said.
He said stock markets had reacted positively and oil prices had declined. “What is really happy is that the market has gone wild. It’s gone through the roof. And oil has tumbled down,” Trump said. “That speaks louder than words,” he said.
The president also expressed confidence that one of the world’s most critical shipping routes would soon return to normal operations. He said the Strait of Hormuz would be fully open within the next “day or two.”
Global leaders laud US-Iran peace negotiations at G-7 meet
The Group of Seven (G7) leaders backed continued negotiations with Iran and said that Tehran must never acquire a nuclear weapon. “We underline the need for the negotiation … to address the threats posed by Iran in the region and beyond and ensure that they never obtain a nuclear weapon,” the leaders said in a joint statement, reported Reuters.
The summit in France also gave Trump an opportunity to brief the leaders of Britain, Canada, France, Germany, Italy and Japan on his administration’s understanding with Tehran. While the G7 nations share Washington’s concerns over Iran’s nuclear programme and regional activities, they had not supported the US decision to go to war with Iran.
Some allies also remain concerned that Tehran may have gained leverage after withstanding US and Israeli military strikes and maintaining influence over the Strait of Hormuz, one of the world’s most important energy shipping routes.
G7 leaders said they are prepared to help implement the agreement, reported Reuters. A coalition led by Britain and France is expected to assist in securing shipping lanes once the Strait of Hormuz fully reopens.
The memorandum of understanding signed by the US and Iran this week has not yet been made public. According to Reuters report, it extends a ceasefire first announced in April by another 60 days to allow further negotiations on a permanent settlement.
Israel’s military operations in Lebanon
Israel launched military operations in Lebanon in March against Hezbollah after the Iran-backed group fired rockets across the border in support of Tehran following US-Israeli strikes on Iran.
Israeli forces still control parts of southern Lebanon, and over one million people have been displaced by the attacks, reported Reuters. Hezbollah also remains militarily active.
Iran has said any ceasefire arrangement must also end hostilities in Lebanon and lead to an Israeli withdrawal. Israel, which did not take part in the US-Iran negotiations, has rejected those demands and says it reserves the right to use military force.
In their joint statement, G7 leaders called for an “immediate robust ceasefire” in Lebanon and demanded the disarmament of Hezbollah, reported Reuters.