Commentary

Trump Waves the White Flag of Surrender to Iran. What Can Go Wrong?

The leaked terms of the deal amount to a Trump surrender. Netanyahu is unhappy.

Unconditional Surrender

My, how things have changed. Does anyone recall this March 6, 2026, bluster by Trump?

Truth Social: There will be no deal with Iran except UNCONDITIONAL SURRENDER! After that, and the selection of a GREAT & ACCEPTABLE Leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before. IRAN WILL HAVE A GREAT FUTURE. “MAKE IRAN GREAT AGAIN (MIGA!).” Thank you for your attention to this matter! President DONALD J. TRUMP

Mar 06, 2026, 6:50 AM

Capitulation by Trump

How’s that surrender idea going Mr. President?

Here’s the latest deal rumor, widely reported everywhere.

Expected Terms

  • Extension of Iran War ceasefire for another 60 days
  • Strait of Hormuz reopened for the 60-day period
  • Iran would be able to freely sell oil during the period
  • US would lift blockade on Iranian ports and unfreeze some Iranian funds
  • US would issue some sanction waivers on Iranian oil
  • Draft MOU includes statement that war between Israel and Lebanon would end
  • Negotiations would then be held regarding Iran’s nuclear program
  • The draft MOU includes commitments from Iran to never pursue nuclear weapons, negotiate over a suspension of uranium enrichment, and removal of its highly enriched uranium.

Surrender by Trump

Those terms represent a surrender by Trump, not Iran.

Amusingly, the terms were negotiated with Saudi Arabia, The United Arab Emirates, Qatar, Pakistan, Türkiye, Jordan, and Bahrain.

Iran and Israel were missing in action.

Iranian officials on the Deal

Gharibabadi is the Deputy Foreign Minister for Legal and International Affairs for Iran.

Peace Through Strength

The 3rd of Khordad, the anniversary of the liberation of Khorramshahr, recalls an enduring truth in Iran’s history; a truth that is also linked to the fundamental principles of the United Nations Charter: a nation subjected to aggression and occupation has the inherent right of self-defence to protect its territory, independence and dignity.

Khorramshahr became a symbol of the triumph of national will over an aggression that began with the calculations of the powers supporting the aggressor, but was defeated by the faith, steadfastness and self-reliance of the Iranian great nation.

Today, Iran follows the same logic: seeking peace with strength, pursuing diplomacy with dignity, and firmly defending the territorial integrity, independence and rights of our beloved Iran.

New York Times on the Proposed Deal

The New York Times reports Iranian officials say the proposed peace deal would end fighting and open the Strait of Hormuz.

As the United States threatened over the past week to resume strikes on Iran, officials there pursued a twofold strategy: engaging in a frenzy of diplomatic negotiations while also aggressively planning for all-out combat.

On Saturday, the diplomatic option appeared to be winning out.

As part of the agreement, the Iranian officials said, Iran would allow ships to pass through the Strait of Hormuz, a waterway crucial to the world’s oil and gas trade, without tolls or fees — for now. In turn, they said, the United States would lift its naval blockade on Iran. The agreement would also halt fighting on all fronts, they added, including in Lebanon, where Israel has continued to clash with the Iran-backed militant group Hezbollah.

The agreement leaves thorny questions related to Iran’s nuclear program for a later date, the officials said. A plan for its stockpile of highly enriched uranium, which the United States has insisted it give up, would be negotiated within 30 to 60 days, they said, adding that the deal would release $25 billion in Iranian assets frozen overseas.

It was not clear whether the proposal the Iranian officials said they had agreed upon was the same draft that Mr. Trump referred to in his social media post. The three Iranian officials said a few hours before Mr. Trump’s announcement that Iran had sent a draft of the agreement to the White House for the president’s approval.

Iran War Live Updates: U.S. and Iran Agree in Principle to Reopen Strait of Hormuz, U.S. Official Says

The New York Times reports Iran War Live Updates: U.S. and Iran Agree in Principle to Reopen Strait of Hormuz, U.S. Official Says

The United States and Iran have agreed in principle to a deal that would wind down the war in the Middle East by reopening the Strait of Hormuz with a commitment from Iran to dispose of its highly enriched uranium, a senior U.S. official told reporters on Sunday.

Over the last 24 hours, Iranian and U.S. officials have offered some conflicting depictions of what a deal might contain. On Sunday, the U.S. official said a deal had not yet been signed and was still subject to final approval from President Trump and Iran’s supreme leader, which could take days.

Iranian military commanders openly threatened to burn down the infrastructure of Arab neighbors in the Persian Gulf if Mr. Trump carried out a threat he had made to target Iran’s critical infrastructure, including its power plants.

Netanyahu on the Deal

The Jerusalem Post comments Trump tells Netanyahu no agreement with Iran without dismantling nuclear program, removing uranium

“In last night’s conversation with President Trump, the Prime Minister emphasized that Israel will maintain freedom of action against threats in all arenas, including Lebanon, and President Trump reiterated and supported this principle,” the Israeli political source told Reuters on Sunday, asking not to be named.

“President Trump made it clear that he will stand firm in negotiations on his consistent demand for the dismantling of the Iranian nuclear program and the removal of all enriched uranium from its territory,” the source said, “and that he will not sign a final agreement without these conditions being met.”

Trump Announces an Iran Deal that Appears to Be a Complete Capitulation

This morning, I reported Trump Announces an Iran Deal that Appears to Be a Complete Capitulation

Here we go again, another deal announcement and another denial by Iran. But …

Believe what you want. But I will believe there is a deal as soon as Iran says there is a deal.

That said, Trump is desperate for a deal. It’s possible this is the real deal. And if so, it’s a total capitulation by Trump.

My “But …” was a thought that this announcement seemed different. And the action today indicates that the idea was indeed correct.

Trump is finally tired of this stupid war he started.

Questions Abound

Is an MOU OK for now? How long is for now?

Netanyahu is against this deal. So are the US warmongers like Senators Ted Cruz and Lindsey Graham.

I am certain Netanyahu will do everything he can to kill this deal.

That “Trump will not sign a final agreement without these conditions being met” leaves a lot to the imagination.

We can go years without a final agreement.

Will Iran Give Up Its Uranium?

That’s a question I can answer. No. Iran won’t and can’t.

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Q: Why?
A: Trump is the world’s biggest liar. The only way Iran can be sure Trump does not break the terms of the MOU is to keep its uranium.

Trump broke Obama’s deal with Iran. Trump broke his own USMCA deal with Canada. Trump bombed Iran in the middle of negotiations in February this year.

Trump is a proven liar. Neither Iran nor any country in the world can believe Trump will honor any deal he makes.

The only leverage Iran has is the ability to close the Strait and its uranium. If it gives both up, Trump is 100 percent certain to break any deal he makes.

So, will we have an MOU?

Right now, that seems likely. But don’t underestimate Netanyahu’s resolve to kill it.

About that Blockade

How did Trump’s blockade work out?

I seem to recall the blockade was supposed to bring Iran to its knees in three days. The blockade began on April 13, 2026. It’s now May 24.

And before that, Trump thought the war itself would take 3-5 days.

Trump was a moron to start this war. And that’s the sorry bottom line.

Prepare for surrender. Trump is waving the white flag.

Obama Flashback

In case you forgot, Trump’s own Secretary of Defense and Chair of Joint Chief of Staff, both told Congress under oath that Iran was honoring the deal with Iran.

  1. Trump’s US State Department: Iran is honoring the terms.
  2. Trump’s Chairman of the Joint Chiefs of Staff: Iran is honoring the terms.
  3. International Atomic Energy Agency (IAEA): Iran is honoring the terms.
  4. Arms Control Association: Iran is honoring the terms.
  5. All US European allies: Iran is honoring the terms.
  6. Every other signee of the accord: Iran is honoring the terms.
  7. Trump’s top general Gen. Joseph Dunford: Iran is honoring the terms.
  8. Trump’s Secretary of Defense Jim Mattis: Iran was complying with the terms of the 2015 Iran Nuclear Deal

For discussion, please see What If Iran Just Honored Obama’s Nuclear Deal? Would We Be at War?

Key Details on Mattis’ Statement and Context:

  • Testimony (October 2017): Testifying before the Senate Armed Services Committee, Mattis said, “I believe that [Iran] fundamentally [are] in compliance with its nuclear deal”.
  • Contradicting Trump: Mattis, a career hawk, advised that staying in the deal was in the U.S. national security interest, putting him at odds with President Trump’s public criticism of the agreement as an “embarrassment”.

Ten Point Synopsis Since 2016

  1. Trump tore up Obama’s deal that Trump administration officials said was working
  2. Then and only then did Iran resort to nuclear bomb grade enrichment
  3. Trump bombed Iran in July of 2025 and announced that he totally destroyed Iran’s nuclear capability
  4. In the middle of negotiations in 2026, Trump bombed Iran again to destroy its nuclear program, which he had already destroyed.
  5. The price of oil, fertilizer, helium, and other goods that pass through the Strait skyrocketed.
  6. Trump demanded unconditional surrender and said the war would be over in a few days which became weeks, then months.
  7. Trump just surrendered to Iran, assuming Netanyahu does not find a way to kill this MOU.
  8. MAGA will find some asinine reason to declare victory.
  9. Oil prices will not go back to where they were. Too much infrastructure has been damaged.
  10. Iran will have oil money, and its US dollar assets will be unfrozen.

Thank you for your attention.

Addendum – Did the Warmongers Get to Trump Already?

Truth Social: If I make a deal with Iran, it will be a good and proper one, not like the one made by Obama, which gave Iran massive amounts of CASH, and a clear and open path to a Nuclear Weapon. Our deal is the exact opposite, but nobody has seen it, or knows what it is. It isn’t even fully negotiated yet. So don’t listen to the losers, who are critical about something they know nothing about. Unlike those before me who should have solved this problem many years ago, I don’t make bad deals! President DJT

May 24, 2026, 12:16 PM

Deal? What Deal?

“Our deal is the exact opposite, but nobody has seen it, or knows what it is. It isn’t even fully negotiated yet.”

More than likely, Netanyahu or the warmongers already got to Trump.

And a Blast at Obama

Truth Social: One of the worst deals ever made by our Country was the Iran Nuclear Deal, put forth and signed into existence by Barack Hussein Obama and the rank amateurs of the Obama Administration. It was a direct path to Iran developing a Nuclear Weapon. Not so with the transaction currently being negotiated with Iran by the Trump Administration – THE EXACT OPPOSITE, in fact! The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side. The Blockade will remain in full force and effect until an agreement is reached, certified, and signed. Both sides must take their time and get it right. There can be no mistakes! Our relationship with Iran is becoming a much more professional and productive one. They must understand, however, that they cannot develop or procure a Nuclear Weapon or Bomb. I would like to thank, thus far, all of the countries of the Middle East for their support and cooperation, which will be further enhanced and strengthened by their joining the Nations of the historic Abraham Accords and, who knows, perhaps the Islamic Republic of Iran would like to join, as well! Thank you for your attention to this matter. President DONALD J. TRUMP

May 24, 2026, 8:10 AM

Obama’s deal with Iran was his single best accomplishment. Trump tore that deal up with the results posted above.

Deep Dive Comments

President Trump just posted this on TruthSocial as a means of reassuring people he is making a good deal behind the scenes to end this war. Unfortunately, he undercuts any confidence that a deal will be worked out at all with his words.

Iran is already signaling that sanctions relief and billions of dollars in unfrozen assets released to Tehran are a requirement to even get to the nuclear question, which won’t be discussed until subsequent rounds of negotiations.

There is very little chance that Iran will agree to the sweeping requirements President Trump is trying to lay out. If President Trump thinks he’s going to get a better deal than the 2015 JCPOA, then we likely get no deal at all, bc Iran is signaling these are deal-breaking terms.

I worry that this negotiation won’t even make it out of the cradle.

Have we regressed from a MOU that would open the strait to demanding a final agreement?

If so, the warmongers got to trump already.

Trump needs more pain. Iran will not budge because making deals with the world’s biggest liar is not smart.

Iran will not give up its only leverage to make a deal with a known liar.

Article posted with permission from Mish Shedlock

Mish Shedlock

Mike Shedlock / Mish is a registered investment advisor for SitkaPacific Capital Management. On “MishTalk,” global economics blog, he writes several articles a day on the global economy. Topics include interest rates, central bank policy, gold and precious metals, jobs, and economic reports, all from an Austrian Economic perspective.

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