60-day deadline for Iran peace deal expires with sides still far apart

A 60-day deadline set by US President Donald Trump for ending the war with Iran and reaching an agreement on its nuclear program expired Monday, with the two sides appearing farther apart than when the agreement was signed.

The deal, signed by Trump at Versailles in June, was intended to halt the conflict and pave the way for a permanent settlement. But negotiations have made little progress, focusing largely on reopening the Strait of Hormuz and lifting a US blockade on Iran, both of which were supposed to happen under the interim agreement.

There has been no indication of a compromise over the strait or that substantive talks on Iran’s nuclear program have even begun.

The United States also faces difficult choices over how to end the war it launched alongside Israel.

Accepting Iran’s latest demands would effectively give Tehran control over a vital international waterway through which about one-fifth of the world’s traded oil and gas passed before the war. Such a move could be viewed as an admission of defeat.

Escalating the already unpopular conflict, meanwhile, could further deplete US supplies of advanced missile interceptors, disrupt the global economy and push up fuel prices ahead of US congressional elections.

As a result, both sides have hardened their positions, apparently hoping the other will make the first concession. So far, neither has.

The June agreement, known as the Memorandum of Understanding, called for an end to all military operations and established a 60-day deadline for reaching a permanent agreement to end the war and settle the longstanding dispute over Iran’s nuclear activities.

It also called for reopening the Strait of Hormuz while giving Iran a vaguely defined role in facilitating maritime traffic, leaving open the possibility that Tehran could impose fees after the 60-day period. Iran has cited that provision in asserting control over the waterway.

A week after the agreement was signed, Iran began firing on vessels using a route along Oman’s coast on the opposite side of the strait. The route is monitored by the US military and was intended to bypass Iranian control.

The United States responded with strikes on Iran, which retaliated by attacking Arab countries hosting American forces, including Jordan, Kuwait and Bahrain. Washington also canceled waivers under the agreement that had allowed Iran to sell oil internationally, while Trump reinstated a blockade of Iranian ports.

Both sides accused each other of violating the June agreement, much of which has since fallen apart.

The fighting eventually subsided. A related ceasefire in Lebanon between Israel and Iran-backed Hezbollah has largely held, although Israeli forces continue to occupy large parts of southern Lebanon. The June agreement had called for Lebanon’s territorial integrity and sovereignty to be protected.

Iranian officials say they stopped direct negotiations with the United States in June, although they acknowledge that messages have continued to be exchanged through intermediaries. Trump, however, says talks have continued and has occasionally claimed progress after backing away from threats of major strikes.

Pakistan, which played a key role in brokering the June agreement, pointed to Monday’s deadline last week while expressing hope that it could be extended.

“We are not closing the chapter,” Pakistani Foreign Ministry spokesman Tahir Andrabi said. “Pakistan is making all-out efforts to bring the two parties to the negotiating table.”

Earlier this month, Iran issued demands for reopening the Strait of Hormuz, including an end to the US blockade, the withdrawal of American forces from around Iran and compensation for damage caused during the war launched by the United States and Israel on February 28.

Iran has also said it would retain control of the strait, and potentially impose fees, through an agreement it is negotiating with Oman. Tehran says the waterway will not return to the open, toll-free route it was before the war.

Meanwhile, Iran-backed Houthi rebels in Yemen have begun attacking Saudi oil tankers in the Red Sea, threatening another important trade route that had helped ease pressure caused by the closure of the Strait of Hormuz.

Trump has rejected Iran’s demands, saying Tehran should instead pay war reparations and claiming that the United States controls the strait. He appears to be relying on economic pressure, including the blockade and long-standing sanctions, to force Iran’s leadership to back down.

Iran’s economy has been severely affected by the war and international isolation, while inflation has surged. The worsening crisis could fuel renewed anti-government protests similar to those that were violently suppressed in January.

Traffic through the Strait of Hormuz increased immediately after the interim agreement but has since fallen to a small fraction of prewar levels. Fuel and other commodity prices are expected to rise further the longer the disruption continues, with consequences extending well beyond the Middle East.

The pressure remains on both sides as the diplomatic clock continues to run.