Iran Exits Interim Agreement with US Amid Escalating Conflict

Iran on Saturday suspended its commitments under the interim agreement with the United States, accusing Washington of violating the deal as both countries exchanged fresh strikes targeting military sites and critical infrastructure. The announcement came as the conflict spread across the Gulf, with Iran attacking facilities in Kuwait and the US launching its seventh consecutive night of strikes inside Iran, raising fears of a wider regional war and further disruption to global energy supplies, news agency Associated Press reported. Iran’s Deputy Foreign Minister Kazem Gharibabadi said Tehran had halted implementation of the interim Memorandum of Understanding (MoU) signed with Washington, blaming continued US attacks. “The US has violated and suspended all its commitments within the framework of the Islamabad MoU ,” Gharibabadi said on state television. NEWS: Iran says it has officially exited the Islamabad Memorandum of Understanding (MoU). Deputy FM Gharibabadi announced that Iran has suspended all commitments under the agreement, citing that the US has “trampled on and halted” its own commitments. “We are no longer… pic.twitter.com/SZiIB7rCGn — MeidasTouch (@MeidasTouch) July 18, 2026 Also Read: Why Iran hardliners are alleging a ‘coup’ after the US agreement He added that Iran had also suspended its obligations under the agreement and was now “busy defending the country.” The announcement marks another setback for diplomatic efforts that had briefly paused hostilities before fighting resumed. The US Central Command (CENTCOM) said its overnight operation targeted Iranian surveillance sites, military logistics infrastructure, underground weapons storage facilities and maritime capabilities, news agency Reuters reported. Iranian media reported that US strikes hit infrastructure in Hormozgan province, including power and desalination facilities, while roads, bridges and tunnels near Bandar Abbas were also damaged. Iranian authorities said at least 50 people have been killed and more than 500 wounded in US strikes over the past three weeks. US officials, meanwhile, said 13 additional American service members had been injured since Monday. Iran widened its military campaign by launching attacks against several US allies in the region. Kuwait reported strikes on a water desalination plant and an oil facility, triggering fires, injuries and temporary airspace closures. It marked the second attack on a Kuwaiti desalination plant in two days, raising concerns over drinking water supplies in the Gulf state. Iran’s Islamic Revolutionary Guard Corps (IRGC) also claimed it targeted US military facilities in Kuwait, Bahrain and Jordan, while Iraq and Jordan said they intercepted Iranian drones and missiles. Reuters could not independently verify several of the Iranian claims. A senior Iranian military official warned Tehran would launch “full-scale offensive operations” if US bombing continued, saying Iran would no longer limit itself to retaliatory strikes. The fighting has increasingly centred on the Strait of Hormuz, a strategic waterway that once carried around 20% of global crude oil supplies. Iran has effectively restricted shipping through the strait since the war began, while the US has tightened pressure by reimposing a naval blockade on Iranian ports. Oil prices climbed above $86 a barrel on Friday as concerns over supply disruptions intensified. Before the conflict escalated, Washington and Tehran had been negotiating over Iran’s nuclear programme. The collapse of the interim agreement now further dims hopes for diplomacy. The renewed fighting also increases political pressure on US President Donald Trump , who had campaigned on avoiding another prolonged Middle East conflict but now faces a deepening regional war with no clear end in sight. (With inputs from AP, Reuters)