- Trump called off a planned strike on Iran after being urged by Tehran and other Middle Eastern countries, stating that a deal has been agreed upon.
- Oil prices fell over 4% following Trump's announcement, with September futures down 4.5% to $80.89 per barrel and October futures down 4.4% to $84.10 a barrel.
- Trump announced that talks are set to begin regarding the proposed agreement, which includes the Immediate, Complete, and Total opening of the Hormuz Strait and an end to Iran's nuclear threat.
- Tehran urged the US to honour the MOU signed in June, with Iranian President Masoud Pezeshkian calling it the centre of gravity of Tehran's future foreign relations.
U.S. President Donald Trump announced he had canceled a planned strike on Iran, responding to requests from Tehran and Middle Eastern allies. This decision comes as negotiations are set to begin, focusing on the opening of the Strait of Hormuz and addressing Iran's nuclear ambitions.
Trump stated, "We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to," indicating a shift towards diplomacy. The proposed agreement aims for the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat."
In response, Iran's acting defense minister remarked, "Although the enemy's recent statements are part of a psychological and cognitive warfare campaign, we consider every threat to be real and take it seriously," highlighting the cautious approach from Tehran. Meanwhile, oil prices fell significantly, with Brent crude futures sliding 4.64% to $83.85 and U.S. West Texas Intermediate crude down 4.74% to $80.66 per barrel, as investors reacted to the easing of geopolitical tensions.
Trump's decision to halt military action follows a period of escalating conflict, with reports indicating he was considering strikes amid dwindling diplomatic options. The negotiations between Washington and Tehran are set to begin on Monday afternoon, with Iranian officials urging the U.S. to honor a memorandum of understanding signed in June, which they believe will shape future foreign relations.
“Iran's Fars International news agency, affiliated with the Islamic Revolutionary Guard Corps, dismissed Trump's proposal as a 'wish list,' and acting defense minister Seyyed Majid Ibn Al-Reza said every threat is taken seriously. Brent crude slid $4.08 to $83.85 and WTI fell $4.01 to $80.66, after both contracts had jumped more than 20% last month.”
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