Trump's Global Economic Fears Gave Iran The Upper Hand In Peace Talks Donald Trump's admission that he signed a peace deal with Iran to avoid an economic crisis has exposed what critics say is a major weakness in America's negotiating position as fresh talks begin in Switzerland. The interim agreement reopened the Strait of Hormuz, restored Iranian oil exports and helped calm global markets. Oil prices fell sharply after the deal was signed, while US stocks rallied — outcomes Trump openly celebrated. But analysts warn that by prioritising economic stability, Trump may have handed Tehran a powerful advantage. Trump Admits Economic Concerns Drove DealSpeaking in France this week, Trump said fears of a global downturn played a key role in his decision to halt the conflict. "I didn't want to see economic catastrophe," Trump said. "If you kept this going, that could've happened." That statement has fuelled concerns among foreign policy experts that Iran now knows Washington is reluctant to restart military action if negotiations collapse. With global markets highly sensitive to disruption in the Gulf, Tehran may believe the White House has little appetite for renewed confrontation. Iran Already Testing US ResolveEven before negotiations formally begin, Iran announced it was once again closing the Strait of Hormuz following renewed tensions between Israel and Lebanon. The move has raised fresh doubts about how much leverage Washington still possesses after agreeing to major concessions under the interim deal. Analysts say Tehran now has far less incentive to rush toward a final agreement. Deal Seen As Favouring TehranAccording to a Bloomberg Economics review, the 14-point memorandum heavily favours Iran. The agreement immediately allows Iran to resume oil exports through sanctions waivers while creating a pathway toward broader sanctions relief. It also includes plans for a $300 billion reconstruction and development programme following the war. By contrast, Iran's main commitment is a renewed pledge not to pursue a nuclear weapon — something Tehran had already promised under the 2015 nuclear agreement. Critics argue Washington has surrendered much of its economic leverage before securing meaningful concessions. War Unpopular At HomeThe political pressure on Trump is also growing. A University of Maryland poll found 56% of Americans believe the Iran conflict harmed US interests more than it helped them. With midterm elections looming in November, Republican lawmakers have become increasingly uneasy about the political and economic costs of the conflict. Earlier this month, the Republican-controlled House even voted to halt the war effort. Negotiations Could Drag OnThe agreement gives both sides 60 days to negotiate a broader settlement, but crucially allows that period to be extended. Experts believe that provision benefits Iran far more than the United States. "The US has dismantled its economic leverage at the exact moment it needs it most," said former Treasury sanctions official Miad Maleki. With sanctions easing, oil revenues flowing and military escalation appearing less likely, Tehran enters the next phase of talks in a far stronger position than many in Washington expected just weeks ago. SOURCE
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