By Boluwatife Oshadiya | August 13, 2026
Key Points
- Iran says there has been no progress on efforts to revive its interim agreement with the United States
- Tehran maintains that the Strait of Hormuz will remain closed until its conditions are met
- Oil markets face continued supply risk as the key Gulf shipping route remains disrupted
Main Story
Iran says efforts to revive an interim agreement with the United States have stalled, leaving the Strait of Hormuz effectively closed and increasing the risk of further volatility in global oil markets.
A senior Iranian source said there had been no progress on negotiations to revive the memorandum of understanding reached in June or establish a timeframe for implementing its commitments.
The deadlock centres on competing demands from Washington and Tehran. The United States has accused Iran of failing to reopen the Strait of Hormuz as agreed, while Iran says Washington has failed to lift its blockade of Iranian ports and release frozen Iranian assets.
The June 17 agreement, signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, called for an immediate and permanent end to military operations. The arrangement later unravelled, with Trump declaring the agreement over on July 7, followed by Iran’s foreign ministry describing it as suspended a week later.
The Iranian source also rejected reports that the agreement’s initial 60-day period for reaching a final understanding on Iran’s nuclear programme and sanctions relief had been extended.
The dispute has significant implications for energy markets. The Strait of Hormuz handled about one-fifth of global oil and liquefied natural gas flows before the conflict began, according to the supplied report. Brent crude, which reached $126 per barrel in April, was trading around $88 on Wednesday, while West Texas Intermediate stood near $83 following volatile trading.
The Issues
The central issue is whether Washington and Tehran can restore the interim agreement sufficiently to reopen the Strait and reduce the risk facing global energy supplies.
The dispute also highlights the strategic importance of the Strait of Hormuz, a major transit route for oil and liquefied natural gas. Continued disruption could keep supply concerns elevated and expose crude prices to further swings, particularly if attacks on shipping and regional military assets continue.
What’s Being Said
“There has been absolutely no progress on this issue,” the Iranian source said, referring to efforts to return to the interim agreement and establish a timeframe for implementing commitments.
U.S. President Donald Trump said the United States has “total control” over the Strait of Hormuz and described Iran as “all talk and no action.”
Iran’s Persian Gulf Strait Authority said the waterway remains closed until Iran’s conditions are met.
What’s Next
- Mediators are considering a 10-day de-escalation proposal aimed at salvaging the interim agreement
- Further negotiations will determine whether Washington and Tehran can agree on implementation timelines and conditions for reopening the Strait
- Oil markets will continue to monitor shipping activity and military developments across the Gulf for signs of a sustained supply disruption
The Bottom Line:
The stalled negotiations leave the Strait of Hormuz at the centre of both the diplomatic dispute and the global energy market risk. Until Tehran and Washington resolve their competing demands, oil prices remain exposed to renewed volatility and the possibility of prolonged supply disruption.
