Trump rejects return to June Iran deal, stalling talks

Efforts to restart diplomacy between Washington and Tehran have hit a wall, with the Trump administration signaling it has no interest in reverting to the terms of the memorandum of understanding it signed with Iran in June, according to The Wall Street Journal News Corp ↘ 1.33%.wsj

The stance has frustrated mediators attempting to revive negotiations that have been stalled since the 60-day MoU expired on August 17 without a follow-on agreement. Pakistan, which brokered the original framework, has continued to push for a resumption of talks, but Iran has not shifted its negotiating position and continues to seek formal control over transit through the Strait of Hormuz.apnews+2

The June Deal and Its Collapse

The original agreement, signed on June 17 at the Palace of Versailles during the G-7 summit, was a 14-point framework brokered with Pakistani mediation and facilitated by Vice President JD Vance. It called for a permanent end to hostilities, the reopening of the Strait of Hormuz, waivers allowing Iranian oil exports, and a 60-day negotiating period on Iran's nuclear program.cnn+3

But the deal unraveled within weeks. Iran began targeting vessels to reassert dominance over the waterway, and by July 8 the ceasefire had collapsed. Both sides accused the other of violations, and detailed nuclear talks never began.wikipedia+2

Competing Demands and Deadlock

In early August, Iran raised its price for permitting free passage through the strait, demanding billions in reparations, the removal of American troops from the region, and an end to the U.S. naval blockade. Trump, who had been privately floating to aides the idea of walking away without a nuclear deal if Iran reopened Hormuz, found even that scaled-back objective blocked.wsj

Trump told Al Jazeera on August 26 that economic and military action "are effective" and that he is "not in a hurry" over negotiations. Iran and Qatar have discussed a joint project to clear mines from the strait, but no broader diplomatic breakthrough appears imminent.aljazeera+1

What Comes Next

The administration's refusal to revisit the June framework leaves few clear paths forward. The war, now in its sixth month, has pushed Iran's economy toward a projected 6.1 percent contraction in 2026, according to the International Monetary Fund. Yet Tehran has shown no willingness to abandon its demand for control over Hormuz traffic, and Washington has offered no new formula to bridge the gap.iranintl+2