Iran’s President Masoud Pezeshkian said Tehran will immediately reciprocate if the United States returns to its commitments under a temporary agreement signed in June.

Pezeshkian made the statement at the Shanghai Cooperation Organisation Summit in Bishkek on Tuesday. He emphasized that war serves no one’s interests and that Iran remains open to a negotiated solution with Washington.

Strait of Hormuz Navigation

Tehran stated it will allow free navigation through the Strait of Hormuz only if Washington fulfills the agreement’s terms. This follows the first direct exchange of attacks between the US and Iran since late July. The US targeted Larak Island, and Iran subsequently launched attacks on two US air bases in Jordan.

Economic Pressure and Sanctions

The statement comes after Iran admitted that US sanctions are causing significant economic distress. Treasury Secretary Scott Bessent warned that Iran’s economy could collapse within weeks or months due to intensified sanctions.

Bessent’s comments expand on Treasury’s Operation Economic Outcast, launched August 24 to disrupt Iran’s financial, oil, shipping and trade networks. He said the US expects to impose new secondary sanctions about weekly, starting with banks.

President Donald Trump ruled out the use of nuclear weapons against Iran. He warned of a forceful response to Tehran’s retaliatory strikes against American forces in Jordan. Trump asserted that Iran had already suffered a decisive military defeat.

Oil Market Reaction

Brent crude oil futures expiring in October were trading 4.64% higher at $92.47 per barrel. WTI crude futures expiring in October were trading 2.88% higher at $88.24 per barrel.

Iran stated that prevailing conditions make a return to the memorandum of understanding with the United States impossible, citing violations of the agreement as the core obstacle.

Iran's position on the MOU

Iran's position centres on the assertion that agreement violations by the US have created conditions incompatible with resuming the memorandum of understanding. The statement signals a hardened diplomatic stance, with Iran placing responsibility for the breakdown on the other party's failure to honour prior commitments.

Diplomatic context

The reference to agreement violations underscores the depth of the dispute between the two sides. Iran's framing of the situation as one where "current conditions" are prohibitive suggests that any path toward re-engagement would require addressing those violations as a prerequisite. No specific timeline or conditions for resolution were indicated in the statement.