Tehran suspends commitments under the memorandum of understanding, citing repeated US violations, heightening geopolitical risks for energy markets.
Iran’s foreign ministry announced it will no longer adhere to the memorandum of understanding, accusing the US of repeated breaches. The move marks a collapse in the agreement reached three weeks ago, resetting tensions to pre-deal levels.
The memorandum, aimed at easing nuclear and regional disputes, had briefly reduced friction over the Strait of Hormuz. However, Iran claims US obstruction has derailed efforts to establish a joint mechanism with Oman, reviving maritime security concerns.
Markets are likely to remain volatile as negotiations appear stalled, with both sides entrenched in mutual accusations. Iran’s strategy of buying time further dims prospects for near-term resolution, keeping energy supply risks elevated.