Middle East Tensions: Trump Says US-Iran Talks Enter Phase Two; Oil Slides as WTI Drops 7%
BlockBeats, June 17 — Signals from Washington, Tehran and Jerusalem continued to shape market and security expectations as developments unfolded around a prospective U.S.-Iran agreement, the Israel-Lebanon front and the Strait of Hormuz.
Former U.S. President Donald Trump said negotiations on a U.S.-Iran deal have moved into a second phase. He said the agreement will explicitly bar Iran from possessing nuclear weapons, adding that the full text will be released soon and could even be read out word for word. Trump also said the U.S. is not rushing to take possession of Iran's nuclear materials, but would destroy them at the appropriate time. Vice President JD Vance said no U.S. government funds will be provided to Iran.
In Tehran, Iran's Armed Forces' Khatam al-Anbia Headquarters accused Israel of breaching the Lebanon ceasefire 84 times over the past two days and warned of a military response if violations continue. The Islamic Revolutionary Guard Corps said Hezbollah had shown significant strength in the latest fighting and "will never be destroyed." Iranian Foreign Minister Alirzaei said nuclear issues would be handled only in the final stage of negotiations, and described an end to the Lebanon war as a necessary condition for ending the conflict involving Iran. An adviser to Iran's foreign ministry reiterated that Iran's missile program and support for regional allies are not negotiable.
On the Israeli side, the Israel Defense Forces said it intercepted rockets fired from Lebanon. Prime Minister Benjamin Netanyahu said Iran will not obtain nuclear weapons, with or without an agreement. Israeli media reported that Israel asked to review the contents of the U.S.-Iran memorandum of understanding but was denied.
U.S. and Israeli media also reported shifts in the U.S. posture. Israeli outlets said some U.S. military aerial refueling aircraft have begun withdrawing from Israel. Separately, other reports said the U.S. is allowing Iran to immediately resume oil exports and to secretly transfer Gulf oil.
On the Strait of Hormuz, Iran's deputy foreign minister said the U.S. has partially lifted its blockade on Iran. U.S. intelligence agencies assessed that Iran still has the capability to close the strait again. Iran's vice president said Tehran will continue to maintain control over the waterway.
Oil prices fell sharply on the day: WTI crude briefly dropped 7%, while Brent slipped below $80 a barrel for the first time since early March.
On ceasefire and deal-related talks, Saudi media disclosed a 14-point U.S.-Iran memorandum of understanding that includes the creation of a $300 billion private fund with no government financing. Iran's deputy foreign minister said Speaker Kalibaf will attend the signing ceremony for the memorandum, and that the next stage will address uranium enrichment, nuclear stockpiles and Iran's nuclear needs.
Hezbollah's Media Liaison Office said Iran has pledged not to sign a final nuclear deal with the U.S. unless Israel withdraws its forces from Lebanon. Kalibaf said Israel must pull out of Lebanon. Trump described the Israel-Lebanon confrontation as a "minor war" and said it would not hinder progress on the Iran deal.
