US Drops Naval Blockade of Iran as Khamenei Calls Trump's Deal 'Out of Desperation'

The United States has officially lifted its naval blockade of Iran, marking a major breakthrough after the two nations finalized an agreement to bring an end to the Middle East war. The move comes even as Iran's Supreme Leader, Mojtaba Khamenei, publicly expressed reservations about the deal, suggesting that Donald Trump agreed to the terms "out of desperation." According to a BBC News report, US Central Command announced the blockade's end on X, stating the action was taken "in accordance with the President's direction." With US enforcement of the blockade now officially over, attention shifts to the agreement's broader provisions, which include an immediate halt to all military operations and the reopening of the strategically vital Strait of Hormuz, a key passage for global oil shipments.

Vance Defends the Deal and Outlines Key Conditions

Vice-President JD Vance defended the agreement, emphasizing that Iran will not receive money or sanctions relief unless it meets obligations set out in the memorandum of understanding. Vance explained that the MoU does not give Iran any benefits until the country proves it will "comply fully and change their behaviour." This includes following through on a commitment to destroy its stockpile of enriched uranium and showing it will not fund proxy groups in the region. Speaking to reporters at a White House briefing on Thursday, Vance said the deal had come into effect, triggering a 60-day period of further negotiations. He added that he would likely head to Switzerland for "technical negotiations," though he did not state when he would go, noting that Iran was "not an easy country" and that they were trying to figure out exactly when that was going to happen.

Cancelled Signing Ceremony and Khamenei's Written Statement

The official signing ceremony for the MoU was set to take place in Switzerland on Friday. However, mediator Pakistan told the BBC that the ceremony was cancelled because the deal had already been signed remotely. US and Iranian representatives are still expected to meet in Switzerland for further talks. In a written statement published on Iranian media, a message from Khamenei said officials working on the deal came to this stage "out of sincere concern and goodwill." He stated that Trump "out of desperation, used all kinds of leverage to bring this about." Without elaborating, he said he held a "different view." Khamenei stressed that while there will be "in-person negotiations in the future" between Tehran and Washington, this "will not mean acceptance of the enemy's position."

Khamenei's First Response and His Absence from Public View

This is the first time the supreme leader has responded to the agreement. Khamenei has not been seen in public since he took office in March following the killing of his father and predecessor, Ayatollah Ali Khamenei, in the US-Israeli strikes on Iran on 28 February that sparked the regional war. Trump did not directly respond to Khamenei's statement but posted on Truth Social that he expects a ceasefire to take effect "on all fronts," including between Israel and Iran-backed Hezbollah in Lebanon. He also expects countries in the Middle East to "maintain their commitment to allowing our negotiations" to take place. The statement reflects Trump's broader vision for the agreement to stabilize the entire region rather than just the US-Iran bilateral relationship, a dynamic we previously examined in our analysis of Trump's shifting Iran strategy.

Netanyahu's Comments and Vance's Response to Israeli Critics

After the signing of the deal, Israeli Prime Minister Benjamin Netanyahu stressed the importance of maintaining Israel's close ties with the US, saying Washington had stood "shoulder to shoulder" with the country during the war with Iran. Netanyahu's comments came after members of his cabinet criticised the deal. In response, Vance said critics of the deal should "wake up and smell the reality," adding that if he were in the Israeli cabinet, he might not be attacking "the only powerful ally that I have anywhere left in the entire world." Vance did not specify who in the Israeli cabinet had criticised the deal during the briefing. However, in an interview with the New York Times, he named National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich as critics, challenging them to offer an alternative proposal. This tension reflects the complex regional dynamics we explored in our earlier coverage of the volatile oil markets during the war.

The Core Points and Continuing Violence on the Ground

The US-Iran agreement to extend the ceasefire centres around 14 core points, including an end to conflict "on all fronts," an end to the blockade, the reopening of the Strait of Hormuz, and a commitment for Iran to never have a nuclear weapon. The deal also commits a $300 billion fund for the "reconstruction and economic development" of the country, although the US is not required to contribute. Despite the agreement, both Israel and Hezbollah have carried out strikes against each other since the announcement. Reports on Thursday indicated strikes in Lebanon that killed three people. Israel argues its conflict against Hezbollah is separate from its war on Iran, while Hezbollah has explicitly rejected the terms of the deal between Iran and the US. This rejection underscores the ongoing volatility in the region.

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