The 60-Day US-Iran Memorandum of Understanding Expires Today With No Final Deal
The framework that briefly promised to end the war has collapsed under mutual accusations of violations, leaving the conflict nearly six months old, markets rattled, and both sides claiming victory over the same unresolved confrontation
ERBIL (Kurdistan 24) - The 60-day deadline set by the memorandum of understanding between the United States and Iran expired on Sunday with no final peace deal in place, no agreed extension, the Strait of Hormuz still closed to normal commercial traffic, a US naval blockade reimposed, and both sides trading accusations of bad faith over an agreement that effectively collapsed within weeks of being signed.
As The National reported on Sunday, the 60-day deadline expired with both sides at an impasse, leaving the conflict, now nearly six months old, unresolved. The Strait of Hormuz, through which roughly a fifth of the world's oil and gas supply flows under normal conditions, has emerged as the central sticking point, with neither side willing to yield on the question of who controls the waterway and on what terms.
The MOU, signed in Islamabad on June 17, 2026, by Presidents Trump and Pezeshkian, declared the immediate and permanent termination of military operations and stipulated that a final deal would be reached within a maximum of 60 days. That final deal was to be endorsed by the UN Security Council and would confirm the permanent termination of the war on all fronts. The agreement included provisions for the US to end its naval blockade within 30 days, remove forces from near Iran after the final deal was reached, and begin work on a reconstruction and development package of at least $300 billion. Iran, for its part, was to clear mines from the Strait of Hormuz and allow ships to pass with no charge for 60 days.
As Al Jazeera confirmed on Sunday, virtually none of those commitments were fulfilled by either side. The MOU collapsed within weeks amid disputes over the strait, renewed military strikes, and mutual accusations of violations. Trump declared the MOU "over" on July 8, 2026, following Iran's attacks on three commercial vessels. Washington reinstated a naval blockade and redirected at least 55 commercial vessels away from Iranian ports. Tehran reclosed the Strait of Hormuz, citing US violations, and advanced legislation in its parliament to assert permanent Iranian control over the waterway, including a bill that would bar US, Israeli, and other hostile vessels from transiting and impose tolls of up to 7 percent of cargo value.
As The New Arab reported on Sunday, Iranian Foreign Minister Abbas Araghchi denied that a 60-day ceasefire requiring an extension even existed. "What was declared in the Islamabad memorandum of understanding was the end of the war, not a ceasefire," Araghchi told reporters on Saturday, adding that since the US violated the MOU and continued attacks, there was no 60-day ceasefire that needed to be extended. The New Arab confirmed that Araghchi said no decision had been made on resuming negotiations.
As The News Pakistan reported on Sunday, a senior Iranian source told Reuters that no talks have occurred on extending the ceasefire, with Tehran insisting Washington must first return to the interim deal and define a timeline for implementing its commitments. Some Turkish state-affiliated media reported that an extension was agreed on August 12, but Iranian officials firmly denied this, with Reuters and Iranian sources providing the more authoritative account.
The tension over who controls what terminology is matched by the tension over the Strait itself. As The National reported on Sunday, Trump said "pretty soon I'll be declaring the Hormuz Strait a territory of the United States," while Iran's deputy foreign minister countered the waterway "was Iran's, is Iran's, and will remain Iran's," capturing in two sentences the fundamental incompatibility that has made every diplomatic framework since February attempt and fail.
Iran's national security apparatus has simultaneously hardened. As Al Jazeera confirmed on Sunday, Mohsen Rezaei, former head of the IRGC, was named as the new head of Iran's Supreme National Security Council, its top security body. The move is designed to better synchronise military and civilian operations, and analysts told Al Jazeera it shows Iran believes it has the upper hand. The appointment, alongside other recent leadership changes, signals a tougher Iranian stance in any future talks and less willingness to back down, particularly on control of Hormuz.
Meanwhile, Parliament Speaker Mohammad Bagher Ghalibaf declared on Saturday that Iran emerged victorious from the war both militarily and politically, saying the US and Israel failed to achieve any of their nine declared war objectives. He called the MOU a document of pride and victory. Trump, for his part, has said "we are just watching Iran with its huge inflation and the fact they have no money," framing maximum economic pressure as Washington's primary remaining instrument.
The expiry of the 60-day deadline today leaves the conflict in a state of suspended but unresolved confrontation, with no ceasefire formally in effect, no extension agreed, no final deal reached, the Strait partially closed, the naval blockade reimposed, and negotiations described by Iranian officials as not currently occurring. Nearly six months after the war began on Feb. 28, 2026, the gap between the two sides on the questions that matter most- who controls the Strait, on what terms Iran's nuclear programme is constrained, and what sanctions relief Tehran receives in exchange- appears as wide as at any point since the MOU was signed.