Trump Cancels Iran Strikes Over Deal Claim; Tehran Denies Final Pact

Oil markets and shipping lanes through the Strait of Hormuz stand at the center of the latest shift in the three-month U.S.-Iran conflict. President Donald Trump announced on June 12 that he had canceled planned strikes after claiming the highest levels of Iranian leadership had approved final points of a memorandum of understanding. The proposed interim accord would extend a cease-fire for 60 days, reopen the strait, and set terms for later talks on Iran's nuclear program.

Trump stated on Truth Social that discussions had reached Iran's top leadership and received approval from all parties, including regional powers. He later told reporters the naval blockade would stay in place until documents are signed, possibly in Europe within days, and that Vice President JD Vance would attend. Iranian Foreign Ministry spokesman Esmaeil Baqaei responded hours later that Tehran was still reviewing the text brokered by Qatar and Pakistan. Baqaei said large sections had been completed but nothing was finalized and Iran would not cross its red lines.

The reversal came hours after Trump warned of heavy strikes and possible seizure of Kharg Island, Iran's main oil export terminal. U.S. Central Command separately reported the strait open to compliant vessels, a claim Baqaei rejected. Oil benchmarks fell sharply, with Brent crude dropping more than $3 a barrel to around $86.50.

Multiple Republican lawmakers expressed reservations about further escalation and its domestic costs. Sen. John Kennedy cited concerns over ground operations and compared the approach to the start of the Vietnam War. Sen. John Cornyn noted the distraction from kitchen-table economic issues ahead of midterms. Iranian officials have acknowledged advanced talks but stopped short of confirming any agreement.