Trump’s MOU Is an IOU: The Severe US Losses in Its Misbegotten Iran War

Trump’s MOU Is an IOU: The Severe US Losses in Its Misbegotten Iran War

Bottom line: If the war accomplished anything, it accelerated the decline of US power, influence, and economic security.

By Joseph Gerson

The Memorandum of Understanding, which ostensibly ends the four-month war between the US and Iran, illuminated the profound US defeat. In addition, a Quincy Institute webinar on military lessons from the war, shortly before the MOU’s release, enumerated numerous ways in which the US failures in its misbegotten war reveal how drastically US military dominance has been undermined for the long term.

On the subject of the relative decline of US power and influence, the impacts of the war on world energy supplies—especially in Asia—will reinforce political and economic pressures for alternative—non-fossil—energy sources. China is already light years ahead of the US in clean energy production technologies, while President Donald Trump thinks only in the very short term as he maximizes oil and gas production and exports while attempting to revitalize filthy coal mining.

Bottom line: The US loss in this totally avoidable imperial war of choice was severe. That said, countries and territories as small and weak as Cuba and Greenland remain profoundly vulnerable.

The MOU’s commitments include:

  • Immediate termination of military operations including in Lebanon.
  • The US and Iran “refrain from the threat or use of force against each other.”
  • Mutual respect of US and Iranian sovereignty.
  • The US and Iran commit to negotiating a final agreement within 60 days, although this timetable can be extended by mutual consent.
  • The US and regional partners will develop a $300 billion plan for reconstruction and economic development in Iran. The mechanism for implementation is to be finalized within 60 days.
  • The US commits to “terminate all types of sanctions against the Islamic Republic” including United Nations sanctions.
  • The US will fully remove its naval blockade within 30 days and will remove its forces “from the proximity of the Islamic Republic within 30 days after the final deal.”
  • Iran will engage in dialog with the Sultanate of Oman “to define the future administration of maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law” and rights of coastal states.
  • Iran “reaffirms that it shall not procure or develop nuclear weapons” as was its stated policy before the war. Additionally, under International Atomic Energy Agency supervision, its current stocks of highly enriched uranium will be blended down, and enrichment for “Iran’s nuclear needs” will be agreed in the final deal.
  • Pending the final deal, Iran will maintain the status quo of its nuclear program, and the US will not impose any new sanctions or deploy additional forces to the region.

Perhaps like the “decent interval” with which the Nixon administration sought to minimize the domestic political costs of the US defeat in Vietnam, by dragging out negotiations and agreeing to a remarkably vague framework, President Trump hopes to minimize the impacts of his lost war on the November midterm elections. Iran will dominate and ultimately control the Strait of Hormuz for the foreseeable future. How it exercises that power, with its global economic implications, will be a new feature of the emerging multipolar world disorder. The escape clause that allows for the extension of negotiations beyond the 60-day timeline should prepare us for a long, difficult, and drawn-out process. And in true Trumpian form, despite the commitment to “refrain from the threat or use of force against each other,” within hours of the MOU’s release, our president threatened to resume bombing if he was not satisfied with the outcome of negotiations. (This may have been more for domestic political consumption than a threat that Iran will take seriously.)

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Originally published in Common Dreams, June 18, 2026

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