President Donald Trump has asserted that Iran's military capabilities have been effectively destroyed and that the recently signed memorandum of understanding (MoU) with Tehran 'probably is unconditional surrender', even as the first round of technical talks under the agreement was postponed on Friday. The MoU, digitally signed by Trump and Iranian President Masoud Pezeshkian, contains 14 provisions including the reopening of the Strait of Hormuz, an end to the US naval blockade, and access for Iran to at least $300 billion in financing, with sanctions relief contingent on a final accord. Switzerland's foreign ministry confirmed that the scheduled negotiations were called off after Iran insisted on guarantees that Israel would halt its military campaign against Hezbollah in Lebanon.

In posts on his Truth Social platform and an interview with Axios, Trump maintained that 'the War has diminished Iran' and that it no longer possesses an air force, navy, or air defence systems. He rejected claims that the US entered negotiations out of desperation, stating instead that 'Iran did' and that Tehran is 'finished'. The president also declared that 'there are no limits' to his power and that the naval blockade demonstrated American strength. From Tehran, Supreme Leader Mojtaba Khamenei was reported to have held a negative view of the deal but permitted Pezeshkian to sign it, while Iranian officials characterised Trump as desperate for an agreement. A diplomat familiar with the discussions told CNN that Iran's demand for an end to hostilities in Lebanon was a prerequisite for resuming talks.

The MoU represents a significant departure from the unconditional surrender and dismantlement of Iran's nuclear programme that Trump originally demanded. Under the agreement, Iran retains the right to continue uranium enrichment under agreed conditions, and discussions on its stockpiles are set to continue. Analysts at the Swedish Institute of International Affairs assessed that the terms are heavily weighted in Iran's favour and that Washington did not achieve its pre-war objectives. In the US Congress, Democratic Senate leader Chuck Schumer called the deal a 'failure' and warned that Democrats would not support any agreement including $300 billion for Iranian reconstruction, while Republican senator Bill Cassidy argued that Iran had emerged stronger. Trump dismissed such criticism, insisting that prolonging the war would have kept the Strait of Hormuz closed and risked a global depression.

The conflict had raised fears of a disruption to global oil supplies, and Trump acknowledged that continuing to bomb Iran would have automatically closed the strait, potentially triggering a worldwide economic crisis. The 60-day negotiation window is now under way, but the immediate suspension of technical talks underscores the fragility of the process. Mediators are reportedly working to address Iran's demand for guarantees on Lebanon. Both sides have publicly offered divergent interpretations of the MoU's significance, with Washington framing it as a military victory and Tehran securing economic and procedural concessions. The next concrete step depends on whether a compromise on the Lebanon condition can be reached to allow negotiations to resume.