Trump Declares Iran Deal Dead as Military Strikes Resume

On July 8, 2026, President Trump said the U.S.-Iran Memorandum of Understanding signed at Versailles in June is "over." The two-week truce collapsed as both sides traded strikes, reverting three months of diplomatic effort to renewed conflict. Oil prices surged 7% on market concerns about disruptions to Strait of Hormuz shipping. The underlying national emergency declaration Trump signed in February remains in effect, leaving the legal framework for sanctions intact regardless of diplomatic status.