Susan Rice, who served as national security adviser under former President Barack Obama, has voiced strong criticism against the Trump administration’s preliminary agreement with Iran, calling it egregious. Rice labeled the deal a “strategic blunder,” highlighting concerns over the concessions made to Iran. In an interview with ABC News, she argued that the United States has made excessive concessions, leading to a “very bad outcome.”

Rice stated that the concessions granted to Iran were given prematurely in a “flimsy, two-page memorandum of understanding.” She emphasized that such concessions should have been reserved for a comprehensive deal addressing Iran’s nuclear program. “In the Obama-era deal, they could only spend those frozen assets on humanitarian things — food and medicine. Now they can use it to fund their terrorist proxies,” she said.

According to Rice, the current agreement lacks definitive terms on Iran’s nuclear issues. While Iran reaffirms not to develop nuclear weapons, the memorandum’s text is vague on enrichment limits and stockpile management. She also criticized the economic benefits Iran would gain, such as selling oil freely and accessing frozen assets without restrictions.

Rice highlighted the implications for the Strait of Hormuz and the $300 billion reconstruction fund for Iran. U.S. officials, however, stated that Iran would face economic rewards only if it complies with the deal. The criticism comes amid heightened tensions between the U.S. and Iran, with President Donald Trump issuing a stern warning to Iran on Sunday.

Trump threatened severe consequences if Iran’s proxies in Lebanon do not cease their activities. He also hinted at potential economic measures, such as charging tolls in the Strait of Hormuz if the peace deal collapses. This waterway is crucial for global oil and gas shipments, and any instability could have significant implications for energy markets.

Iran announced on Saturday it had shut the Strait of Hormuz, a critical corridor for global crude shipments, citing Israeli strikes in Lebanon and ceasefire breaches by the United States and Israel. The closure, ordered by the Khatam al-Anbiya Central Headquarters, Iran's top joint military command, threatens to disrupt seaborne energy flows and impact oil pricing. Military officials warned the move is a "first step," with further measures possible if perceived aggression continues.

The announcement follows a recent U.S.-backed arrangement intended to ease fighting and allow vessels to transit the waterway. Tankers had resumed using the route under that agreement, but the renewed warning suggests a reversal of that progress. Iranian military officials justified the tightening of maritime access by pointing to ongoing Israeli attacks in Lebanon despite a ceasefire with Hezbollah.

Messaging from Iranian institutions has been uneven throughout the situation. On Thursday, Iran’s Revolutionary Guard Corps stated the strait was being shut over alleged ceasefire violations. However, Iran’s Foreign Ministry subsequently said the passage remained open, with commercial shipping continuing under Iranian oversight.

The Strait of Hormuz is a major conduit for seaborne energy flows, moving a large portion of global oil exports. Its narrow geography and heavy traffic mean even short interruptions can ripple through oil pricing and broader trade. The latest development raises concerns about the stability of global energy supplies.