Oil Tumbles On Deal ‘Breakthrough’ As US-Iran Reportedly Reach MOU, Pending Trump’s Final Approval

Summary

• Per Axios: “U.S. and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran’s nuclear program, but President Trump has yet to give it his final approval.”
• Unconfirmed reports of Ayatollah denial of MOU.
• Saudi state media reports Pakistan is seeking to convince Washington to allow transfer of Iran’s highly enriched uranium to China (Al Hadath).
• Iran launches ballistic missile on US base in Kuwait, which was reportedly intercepted by Kuwaiti forces.
• Fresh launch is retaliation for prior evening’s skirmish involving US intercepting Iranian drones, and targeting coastal launch location.
• Stalled talks still stuck on nuclear issue: Iran insists it will keep its enriched uranium as a matter of national soveriegnty.

*  *  *

Reports that Ayatollah has Not Accepted MOU

And very quickly on the heels of the Axios report, there chatter that the Iranian side has not actually approved:

Reports Mojtaba Khamenei Did Not Approve Deal – i24 @AmichaiStein1 https://t.co/cUVMLI3YDy pic.twitter.com/K1PiYumQLU

— LiveSquawk (@LiveSquawk) May 28, 2026

Oil Tumbles on Reported MOU Breakthrough

Per Barak Ravid: “U.S. and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran’s nuclear program, but President Trump has yet to give it his final approval,” two US officials have told Axios. This could be the hugest diplomatic breakthrough yet, after weeks of stalled talks, but it awaits President Trump’s.

“U.S. officials said the deal terms were mostly agreed as of Tuesday, but both sides still needed to get approval from senior leadership,” Axios notes by way of caveat. According to some emerging details from the report:

• The U.S. officials claimed the Iranians later came back and said they had the necessary approvals and were prepared to sign. Iran has not confirmed that.
• The U.S. negotiators briefed Trump on the details of the final deal and he asked to take a few days to think about it.
• “The president relayed to the mediators that he wants a couple of days to think about it,” a U.S. official said.

Key question: is Iran’s high enriched nuclear material part of the MOU? This could put it in jeopardy.

Oil tumbles on the headline…

Uranium Transfer to China?

According to Saudi state-funded Al Hadath, Pakistan will present to the US the “transfer of Iranian uranium to Beijing under international supervision.”

The report seems unlikely, given it is also worded in such a way as to suggest the scheme originates with Pakistan, as a desperate attempt to keep stalled talks alive. Tehran has never indicated it would contemplate sending its enriched uranium stockpile abroad, even to a ‘friendly’ nation. 

Iranian Launch on Kuwait

The government of Kuwait on Thursday has made clear it retains all rights to take measures to preserve its security, following a overnight Iranian missile strike. Kuwait’s Foreign Ministry further condemned the fresh missile ⁠and drone ⁠attacks on its territory as ‌a serious escalation and “blatant violation of sovereignty and ⁠security.” The Iranian launch, which Tehran says targeted a US base in Kuwait, came in response to US bombardment of an Iranian drone base near the southern city of Bandar Abbas which occurred just prior.

In a new statement, US Central Command (CENTCOM) confirms that “At 10:17 p.m. ET on May 27, Iran launched a ballistic missile toward Kuwait that was successfully intercepted by Kuwaiti forces.”

“This egregious ceasefire violation by the Iranian regime occurred hours after Iranian forces launched five one-way attack drones that posed a clear threat in and near the Strait of Hormuz,” the US military statement continued.

“All drones were successfully intercepted by U.S. forces which also prevented a sixth drone launch from an Iranian ground control site in Bandar Abbas,” it added. “U.S. Central Command and regional partners remain vigilant and measured as we continue to defend our forces and interests from unjustified Iranian aggression.”

Additionally, the Gulf statement strongly condemned the fresh Iranian attack, with the head of the Gulf Cooperation Council (GCC), Jasem Mohamed Al-Budaiwi, denouncing it as follows: “The secretary-general pointed out that the continuation of these treacherous attacks is a flagrant violation of the principles of international law, the Charter of the United Nations, and the principles of good neighborliness.” The GCC statement added: “His excellency affirmed the GCC countries’ full support for the state of Kuwait in all measures it takes to preserve its security and stability, and the safety of its citizens and residents,”

A separate statement from Saudi-led Gulf allies further condemned the act of ‘terrorism’ – per Al Aljazeera:

The United Arab Emirates, Qatar and Saudi Arabia have condemned a missile attack on a US airbase in Kuwait with only the UAE expressly naming Iran as responsible for the “terrorist attacks”.

In statements shared on social media, the foreign ministries of the UAE, Qatar, and Saudi Arabia said they consider the attack “a flagrant violation” of Kuwait’s sovereignty, and expressed their countries’ “full solidarity” with Kuwait and “support for all measures” it takes to preserve its sovereignty, security and stability.

Two US-Iran Clashes Incidents This Week

This marks the second live-fire attack flare-up this week, after earlier Wednesday Iran fired drones on American and other foreign commercial vessels in the Strait of Hormuz.

“American F/A-18, F-16 and F-35 jet fighters shot down the drones, then the F/A-18s hit the ground-control unit before it could launch a fifth drone, one of the officials said,” The Wall Street Journal summarizes of that first incident.

State TV released video of the ballistic missile launch targeting a US base in Kuwait:

Iran’s Revolutionary Guard released footage showing the launch of missiles toward the U.S. base in Kuwait, describing it as retaliation for the American attack near Bandar Abbas in southern Iran.

The video also featured symbolic anti-U.S. imagery. pic.twitter.com/s1qlIQEQRy

— Clash Report (@clashreport) May 28, 2026

Stalemated Talks Hung Up on Nuclear Issue

It seems that Iran is asserting some red lines through single, sporadic attacks, when it perceives a US military violation of its sovereignty. WSJ cites the following:

The spokesman for the National Security Commission in Iran’s parliament said Trump’s unwillingness to acknowledge that the U.S. and Tehran were still at war was a sign of his weak negotiating position. “Diplomats should not let go of the enemy’s weak point and should impose maximum demands on them,” the spokesman said.

Currently, negotiations are still primarily stuck on the nuclear issue. President Trump has vowed not to let off sanctions pressure until Tehran agrees to dismantle its nuclear program by handing over highly enriched uranium to be transferred off its territory. Iranian officials say this simply will not happen, and that it would be tantamount to handing over the country’s sovereignty. Tehran has insisted the nuclear file must be dealt with after the war is over, and later on down the line.

More Latest Developments

Round-up via Newsquawk…

• US official said US military carried out new strikes on an Iranian military site and shot down multiple Iranian drones that posed a threat to US forces and commercial maritime in the Strait of Hormuz.
• IRGC said it targeted the US air base in response to the US aggression earlier near Bandar Abbas Airport, according to Tasnim. said:. Any further US attacks would trigger a more decisive response. Washington bears responsibility for consequences.
• Military source tells Tasnim that hours ago, a US oil tanker intended to cross the Strait of Hormuz by turning off radar system, but IRGC Navy fired at it and forced it to turn back, while US army fired into Bandar Abbas but caused no damage. This was the cause of the earlier reported explosions. No casualties or damages were caused by the US, which fired at a scorched-earth area.
• Iran’s Navy forced four vessels to turn back in the Strait of Hormuz by firing warning shots, according to Tasnim.
• Sound of three explosions heard from the east of Bandar Abbas, Iran, with exact location and source of the sounds still unclear, while air defences were activated for a few minutes, according to Fars News Agency.
• “Hearing the sound of multiple explosions in Kuwait”, ISNA reported, “Kuwait’s official news agency stated that air defense systems are currently countering missile and drone attacks” [likely referring to earlier reported].
• Air raid sirens sounding in Kuwait, while Kuwaiti Army said air defense intercept hostile missile and drone attacks, according to Al Hadath.
• Commentary
• US Treasury Secretary Bessent said Gulf Strait Authority action targets Hormuz tolls, adds the Treasury is maintaining maximum pressure on Iran.
• Iranian National Security Council Official Bagheri said Iran’s assets must be released unconditionally, Tasnim reported.
• US issues fresh Iran-related sanctions by adding Persian Gulf Strait Authority to its SDN list.
• US has carried out a defence operation in Bandar Abbas, Iran, according to Faytuks Network citing an official that said, “the US will act to safeguard its regional interests, and this does not affect the ceasefire”.
• Iran Supreme National Security Council Deputy Secretary Baqeri met with Russian Deputy Foreign Minister Ryabkov, and discuss a number of important issues on the current international agenda with focus on the situation around Iran’s nuclear program. Via IRNA/Telegram.
• Deputy Head of Public Relations for the IRGC Aerospace Force, Ali Naderi, said on Wednesday If enemies launch military action again, the Islamic Republic’s response will be different from anything seen so far. said: “…they will face a new image of Iran”.
• Head of Iranian Parliament National Security Committee said Iran will not be pushed back by US President Trump’s rhetoric from its red lines: rights to enrich uranium and its possession, authority over the Strait of Hormuz and removal of sanctions.
• IRIB reporter said no signs of an explosion have been seen in Bandar Abbas, while some people have heard the sound of this explosion and none of the officials concerned about the matter have issued any official statement.
• Axios reported that US military had shot down 4 Iranian drones targeting ships and an Iranian drone launcher on the ground.
• Israeli fighter jets carry out attack on the city of Tyre in southern Lebanon, according to Mehr News Agency.
• Hamas spokesperson said the Gaza ceasefire agreement faces risk of collapse due to occupation’s crimes and ongoing violations, Al Jazeera reported.
• IDF said it’s striking Hezbollah infrastructure in the area of Tyre in southern Lebanon.