• U.S. President Donald Trump stated that a memorandum of understanding with Iran is not final and that the U.S. could resume bombing if the deal fails to meet his expectations.
  • The remarks, made at the G7 summit, introduce uncertainty into ongoing nuclear negotiations and signal a hardline stance.
  • Markets react with caution, as the threat of renewed conflict could impact energy prices and risk sentiment.

Threat Raises Stakes in Nuclear Talks

President Donald Trump on Thursday declared that a memorandum of understanding (MoU) with Iran is not yet finalized, warning that the U.S. would “go back to bombing” if the agreement does not satisfy his conditions. Speaking on the sidelines of the G7 summit, Trump’s comments caught diplomats off guard, as negotiations over Iran’s nuclear program and sanctions relief had appeared to be progressing.

“If they don’t fulfill what we want, we’ll go back to bombing,” Trump said, according to a person familiar with the matter. The White House did not immediately respond to a request for comment. The statement underscores the volatile nature of U.S.-Iran diplomacy, where public posturing often precedes final agreements.

Diplomatic and Economic Fallout

The remarks complicate ongoing talks aimed at constraining Iran’s nuclear activity in exchange for easing economic sanctions. A final MoU, which would likely include verification mechanisms and phased relief, now faces heightened uncertainty. European allies, who have pushed for a stable framework, expressed concern. “We need a predictable path forward,” said a senior EU diplomat.

In financial markets, the threat of renewed hostilities sent oil prices briefly above $82 a barrel before settling. Analysts warned that a breakdown in talks could disrupt global energy supplies and increase risk premiums across asset classes. “This reintroduces tail risk for regional stability,” noted a geopolitical strategist at a major bank.

Implications for Regional Security

Trump’s hardline stance carries implications beyond the nuclear deal. Israel and Gulf states, which have advocated for a tough approach, may see the threat as validation. Meanwhile, Iran’s government condemned the remarks as “sabotage” and vowed to continue enrichment activities unless sanctions are lifted.

The situation remains fluid. The U.S. and Iran have yet to release official text of the MoU, and negotiations are expected to continue at the UN General Assembly in September. Without a final agreement, the risk of escalation—whether through renewed sanctions or military action—will weigh on diplomatic and market sentiment.

Correction: A previous version of this article incorrectly stated that the MoU was signed; it remains under negotiation.