When asked ahead of the NATO summit in Turkey if the memorandum of understanding is over, Donald Trump says: ‘It’s a very interesting question. For me, I think it’s over. I don’t want to deal with them.’
US President Donald Trump said on Wednesday, July 8, the temporary agreement of end the war with Iran “is over” after Tehran launched new attacks on US bases in the Gulf.
In a flare-up of hostilities that sent oil prices soaring, Iran said it targeted US military bases in Bahrain and Kuwait after US forces attacked Iranian sites in response to attacks on oil tankers in the Strait of Hormuz.
The attacks further undermined the ceasefire agreement and undermined hopes of turning the accord signed on June 17 into a permanent agreement to end the war, which began with US-Israeli airstrikes on February 28.
Oil prices go up, stocks go down
Asked ahead of a NATO summit in Turkey if the accord was done, Trump said: “It’s a very interesting question. To me, I think it’s done. I don’t want to deal with them.”
“They are garbage. They are sick people. They are led by sick people,” he told reporters in Ankara. “As far as I’m concerned, it’s just a waste of time dealing with them.”
Although Trump has at times backed off his threats against Iran, oil prices rose and stocks fell after his latest remarks.
A source familiar with the Ankara talks said Trump did not repeat his comments about the interim agreement ending when NATO leaders met later in the summit.
The renewed hostilities have also raised safety and security concerns around the Strait of Hormuz, with shipping data showing at least four oil and gas tankers have turned back rather than attempt to pass through the waterway, a key supply route.
Oil prices rose and international bond markets fell. Brent crude futures LCOc1 jumped more than 5%, the most in a day since late May, to $78.48 a barrel. O/R
While that was below the $120 highs seen during the fierce fighting, it was enough to inject new inflation risks into the bond market, especially as months of conflict have reduced global oil inventories.
Iran and the United States trade blame
Iran’s Revolutionary Guard Corps (IRGC) said on Wednesday it had targeted US military bases in Bahrain and Kuwait and that it had shot down a US MQ-9 drone that was trying to interfere with the operation.
The Bahraini army later said it had repelled the Iranian attack.
The US had given up earlier new military offensive and canceling the license that allows Iran to sell oil in response to attacks on three oil tankers in the strait.
The U.S. Central Command said more than 60 small boats used by the IRGC were among the targets struck in an operation it said was intended to impose a heavy cost on Iran for naval strikes in violation of the ceasefire.
“The unwarranted aggression by Iranian forces is a clear and dangerous violation of the ceasefire and undermines freedom of navigation,” CENTCOM said in a statement.
NATO Secretary General Mark Rutte told reporters before the NATO meeting that new US attacks on Iran are “absolutely necessary.”
The European Union’s foreign policy chief Kaja Kallas later said on X: “The US-Iran ceasefire talks further complicate negotiations that have already seen an end to the war. Iran’s attacks on Bahrain and Kuwait are unacceptable.”
Iran’s top joint military command, the Central Headquarters of Khatam al-Anbiya, condemned the US attack as an “act of aggression,” threatened a “strong response,” and warned that Tehran would not allow US interference in the management of the strait.
Iran’s chief negotiator, parliament speaker Mohammad Baqer Qalibaf, accused the United States of violating the ceasefire agreement. Not only did he mention the latest US military strikes, but he reimposed oil embargoes, Iran’s “reform” violations in the Strait of Hormuz, and Israel’s attacks on Lebanon.
“The era of bullying and extortion is over,” Qalibaf said in a post on X. “We’re not looking for it.”
Iranian media earlier reported explosions in Iran’s main oil hub of Kharg Island, on Qeshm Island and in the southern port cities of Sirik and Bandar Abbas.
Iran’s Press TV reported several explosions were heard south of Kharg Island. CENTCOM did not mention Kharg Island, to which Iran exports 90% of its crude oil.
A US official told Reuters that the strikes targeted Iran’s air defense systems, coastal surveillance systems, surface-to-air missiles, anti-ship missiles and drone launch sites.
No civilian deaths were reported in Iran.
Iran wants to increase control of the Strait
Control of the Strait of Hormuz has given Tehran great leverage, effectively allowing it to force a standoff with the world’s most powerful military.
Analysts say Tehran is using attacks on ships to assert that capability as it negotiates a long-term peace deal with the United States.
Under the US-Iran interim agreement, the US Treasury issued a general license on June 22 to allow the sale of crude oil and petroleum and petroleum products of Iranian origin until August 21. In revoking the license on Tuesday, July 7, it gave Iran until July 17 to cease all operations.
Iran’s Ministry of Foreign Affairs has condemned the move and said it is a violation of the terms of the ceasefire agreement and said Washington will be responsible for the consequences.
The ministry said that Iran will take any action it deems necessary to protect its interests and national security. – Rappler.com
