Trump shuts the door on Iran deal: Hormuz diplomacy hits a wall

The Trump administration has indicated that it will not return to the June memorandum of understanding (MOU) with Iran, effectively closing off a potential path towards reopening the Strait of Hormuz and restarting broader nuclear negotiations. The June 17 MOU was based on the exchange of Iran facilitating the reopening of the strategic waterway and addressing nuclear issues, while the US would provide sanctions relief and access to frozen Iranian assets.

However, Trump has publicly rejected the idea of renewed negotiations with Tehran, stating that Iran is the side asking for talks and that Iran is a failing nation. Tehran, on the other hand, is demanding significant concessions before agreeing to normalise traffic through the Strait of Hormuz, including $300 billion in compensation/reconstruction funding, release of frozen Iranian assets, broad or complete US sanctions relief, an end to US naval blockades and oil restrictions, and guarantees concerning Iran's control and sovereignty over the strait.

The gap between the two sides is currently enormous, with Washington insisting on Iran giving up leverage over the waterway and making major concessions on its nuclear program, while Tehran demands the removal of sanctions and blockade before making any concessions. This has created a diplomatic deadlock, with each side wanting the other to move first.

Brief written by urgent.news from Gulf News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.