The End of the Iran-U.S. 60-Day Agreement

The latest currency crisis is unfolding against a much broader geopolitical background.

A memorandum of understanding between Iran and the United States, signed on June 17, was intended to create a framework for ending military operations and beginning negotiations toward a wider settlement.

The agreement was designed to address a number of issues, including military operations, sanctions, oil exports, the Strait of Hormuz and Iran’s nuclear program.

However, the agreement deteriorated rapidly.

Both sides accused the other of violating its terms.

By July, President Donald Trump had declared that the agreement was effectively over, while Iranian officials argued that Washington had violated its commitments first.

The expiration of the 60-day period on August 17 therefore did not produce a clear diplomatic breakthrough.

Instead, uncertainty remained.

That uncertainty is extremely important for financial markets.