Peace Was Short-Lived in Middle East: Trump Declares Deal 'Over', Revokes Licence for Iranian Oil Trade

A fresh series of attacks has destablised the peace talks between Iran and the United States, with latter taking offensive actions against Tehran for targeting its ships in the Strait of Hormuz. In its defense, Iran targeted Bahrain and Kuwait, while the liquefied natural gas tanker came under attack after ignoring its warnings. Subsequently, US President has declared the peace deal is "over".

By Pranjal Gupta

New Delhi, July 8: US President Donald J. Trump on Wednesday declared the peace deal between Iran and America has now been cancelled. “For me, I think it's over,” Trump responded when asked about the status of ceasefire after Tehran dealt with US ships in the Strait of Hormuz aggressively.

“It's just a waste of time dealing with them.” However, he added that he will allow talks to continue.

He made the comment on the sidelines of the two-day NATO summit in Ankara, Turkey, and hours after striking Iran in what the US described as retaliation for strikes on tankers in the Strait of Hormuz.

Despite conducting peace talks through international channels, Iran and the United States began exchanging missiles in the Middle East early Wednesday. Tehran targeted Bahrain and Kuwait in retaliation for the United States' airstrikes on Iran. According to the American military, it launched the strikes after Tehran targeted three ships in the Strait of Hormuz. Following which, the US revoked a licence that authorised the sale of Iranian oil as part of the interim deal.

Donald Trump announced the peal deal with Iran now stands cancelled. (AI-Generated Image)

Both Bahrain, home to the US Navy's 5th Fleet, and Kuwait, home to US Army forces, sounded sirens on Wednesday, asking people to move to safer places.

The US military's Central Command said American forces launched the strikes "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway."

It said it hit Iranian targets, including air defence systems, radars and more than 60 small boats used by Iran's paramilitary Revolutionary Guard. Those boats have played a key role in harassing ships in the strait.

The US military remains "postured and prepared to hold Iran accountable when the agreement is not adhered to or obeyed," it added, saying this round of attacks had ended.

Meanwhile, Iran had received a licence to sell crude oil on the international market in US dollars for the first time in years. The country had been suspected of selling sanctioned crude oil to China at below-market prices.

However, the cancellation of the licence came after the strikes on shipping. One tanker was travelling off the coast of Oman when it was hit and caught fire, the United Kingdom Maritime Trade Operations centre said. Iranian state television said the liquefied natural gas tanker came under attack after ignoring warnings but did not directly claim responsibility for the assault.

The regional crossfire raised the risk that an interim agreement to halt fighting in the war could break down, putting the Middle East at risk of a wider conflict once again. However, the exchange followed a pattern of similar attacks during the deal's fragile ceasefire, and neither country immediately signalled that it would step away from the negotiating table.

The attacks on shipping and the resulting strikes came during the days-long funeral for Iran's Supreme Leader Ayatollah Ali Khamenei, who was killed on February 28 in the opening moments of the war at the age of 86. The funeral, which ends on Thursday, had been expected to be a period of lower tensions, though mourners have repeatedly called for the killings of US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

Negotiations to reach a final deal had been due to begin after Khamenei's burial and were expected to focus on the toughest issues, including fully reopening the strait and rolling back Tehran's disputed nuclear programme. However, the latest attacks have thrown that into question.

"The era of bullying and extortion is over," Iran's Parliament Speaker Mohammad Bagher Ghalibaf wrote on X. "It leads nowhere. We don't fold."

(With inputs from AP)