US strikes Iran for second night – is the peace process all over now?
Neither side has officially called off the interim peace agreement, despite the escalation.

Neither side has officially called off the interim peace agreement, despite the escalation.





![Thousands attend the funeral commemorations for Iran's assassinated Supreme Leader Ayatollah Ali Khamenei [Al Jazeera]](https://www.aljazeera.com/wp-content/uploads/2026/07/2-1783177152.jpg?resize=770%2C513&quality=80)



The US-Iran MoU acts as a state-to-state framework managing mutual pain, not a definitive end to regional conflict.
Markets in Iran react poorly after two nights of military confrontations over transit through the critical strait.
Iran and the US trade attacks over navigation through the Strait of Hormuz, which has emerged as a major sticking point.
Iran’s IRGC appears to have rejected US claims of a military hotline will operate between the two countries.
The US has struck Iran for the first time since the two sides reached a Memorandum of Understanding on June 17.
The US has struck Iran in retaliation for what it says was an Iranian attack on a ship in the Strait of Hormuz.
Tehran rejects US-GCC pressure over missiles, the Strait of Hormuz and regional armed groups.
Experts say disagreements over shipping routes and transit fees could complicate efforts to reach a permanent agreement.

US President Donald Trump and Iranian President Masoud Pezeshkian have reportedly signed a Memorandum of Understanding
Shipping operators and insurers prefer to wait and watch from a distance for now.