Trump Rules Out Extending Iran Truce MOU as Brent Settles Above $90

President Donald Trump said on August 17 that he has no intention of extending the 60-day negotiating deadline under a memorandum of understanding, or MOU, on ending the war with Iran. Brent crude settled above $90 a barrel for the first time in 17 days, after last closing above that level on July 31.

Trump said Iran would not accept the terms sought by the US and must "raise the white flag of surrender," Reuters and other media reported. He also underscored that preventing Iran from acquiring nuclear weapons is Washington's top priority. The remarks appeared to restate the original rationale for the war as criticism mounted that the US had failed to completely eliminate Iran's nuclear capabilities.

Trump also issued a sharp warning to Oman, a US ally discussing shipping arrangements with Iran in the Strait of Hormuz. "If Oman gets in the way, we will bomb them," he said in an interview with Fox News. He added that he liked the idea of declaring the Strait of Hormuz US territory.

Iran also said extending the MOU would be meaningless. Foreign Ministry spokesman Esmaeil Baghaei said the US had "blatantly and extensively" violated the agreement and that any discussion of the 60-day period had "completely lost its meaning."

Oil prices surged as diplomatic efforts to resolve the US-Iran war remained deadlocked. Brent futures for October delivery settled 2.65% higher at $90.87 a barrel on ICE Futures Europe. West Texas Intermediate crude for September delivery rose 2.55% to $84.50 a barrel.

Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com