World

Trump declares Iran peace accord 'over'

Trump declares the interim peace accord with Iran effectively dead following renewed military escalation

Updated 1 month ago · Published on 08 Jul 2026 5:23PM

Trump declares Iran peace accord 'over'
The US President orders a halt to trade with Spain over its defence spending stance - July 8, 2026

US President Donald Trump has declared that the interim agreement aimed at ending the conflict with Iran is effectively finished, saying he no longer intends to negotiate with Tehran following renewed military hostilities that have jeopardised hopes for a permanent peace settlement.

Speaking on the sidelines of the NATO summit in Ankara on Wednesday, Trump said the memorandum of understanding reached in June, which was intended to lead to a comprehensive peace agreement by mid-August, had lost all relevance after the latest escalation.

"It's a very interesting question. To me, I think it's over. I don't want to deal with them," Reuters reported Trump saying when asked whether the interim accord remained in force.

"They're scum. They're sick people. They're led by sick people."

"As far as I'm concerned, it's just a waste of time dealing with them," he added.

Trump's remarks came after the United States launched fresh military strikes against Iran and revoked a licence allowing Tehran to openly sell crude oil following alleged Iranian attacks on commercial shipping in the Strait of Hormuz.

The comments cast further doubt over diplomatic efforts to salvage the ceasefire, which had been expected to provide the framework for negotiations on Iran's nuclear programme and regional security.

The US president also opened a second front at the NATO gathering by announcing that he had instructed Treasury Secretary Scott Bessent to terminate trade relations with Spain, accusing Madrid of failing to meet its defence commitments within the alliance.

"Spain is a wasted cause. We don't want to do any trade business with Spain anymore," Trump said.

"By the way, I'd like to cut it off. Spain is a terrible partner in NATO. They don't participate, they don't pay. I don't want anything to do with Spain. Cut off all trade with Spain, including visits."

The twin announcements overshadowed a summit that European leaders had hoped would reinforce alliance unity, strengthen support for Ukraine and ease tensions that have increasingly strained transatlantic relations.

Washington and Madrid have remained at odds after Spain openly rejected Trump's repeated calls for European allies to significantly increase military spending to finance their own defence.

Responding to Trump's comments, the office of Spanish Prime Minister Pedro Sánchez sought to downplay the remarks, describing them as "business as usual" while maintaining that bilateral relations continue to serve the interests of both countries.

Trump's statements are expected to deepen uncertainty surrounding both NATO cohesion and international efforts to stabilise the Middle East, with the collapse of the interim Iran accord threatening to prolong regional instability while renewed trade tensions risk adding another source of friction between Washington and its European allies. - July 8, 2026

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