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Oil Prices Tick Back Up After Trump Warns He Could Resume Bombing Iran

President Trump made clear on Wednesday that the United States has not put its military options away, warning that if Iran fails to follow through on the agreement currently being finalized, the US would be prepared to restart hostilities. The comments came as both countries are gearing up for a formal signing ceremony in Geneva on Friday.

What Trump Said
Speaking during a bilateral meeting with Prime Minister Narendra Modi on the sidelines of the G7 Summit in France, Trump described the memorandum of understanding as a detailed document that would eventually translate into a full contract. He suggested he believed Iran would go through with it, but left no doubt about what would happen if they did not.

#WATCH | Evian, France: On deal with Iran, US President Donald Trump says, “This is a Memorandum of Understanding (MoU) but it is a very strong one. This isn’t just like a two paragraph and this is a longer and detailed memorandum that goes into a regular contract. I think they… pic.twitter.com/XXpkHWDb0G
— ANI (@ANI) June 17, 2026
“This is a long, you know, pretty detailed memorandum that goes into a regular contract. I would think they would do it. If they don’t, then that’s, you know, that’s okay. We’ll have to start the process again. And we don’t lose,” he said.
Earlier the same day, Trump had been even more blunt, warning that if Iran stepped out of line, the US would go right back to dropping bombs on them. Speaking during a bilateral meeting with Egypt’s President, Trump said “it’s a Memorandum of Understanding, and if I don’t like it, we’ll go back to shooting at them, dropping bombs on their heads.”

Confident but Cautious on Friday’s Signing
When a reporter asked Trump directly whether he was confident the agreement would actually be signed on Friday, he gave a measured answer that managed to project both optimism and uncertainty at the same time.
“You never know with deals, do you? But you’re going to find out pretty soon. I think it will be done. They want to sign. They want to get back to a normal life,” he said.
He also added that Iran was, in his assessment, eager to reach an agreement. “They want to make a deal,” he said. “They are so ready to make a deal.”
Behind the public confidence, there is real political pressure on Trump to get this resolved. The midterm elections are approaching and gas prices have remained stubbornly above $4 per gallon, two factors that have made ending the conflict a priority for the administration.

Oil Prices Tick Back Up
Markets noticed Trump’s harder language. Oil prices, which had fallen sharply earlier in the week following the initial announcement of the agreement, edged back up on Wednesday after Trump floated the possibility of resumed military action.
Brent crude futures climbed 93 cents, or 1.2%, to $79.89 a barrel just after noon GMT, according to Reuters. US West Texas Intermediate gained 79 cents, or 1%, reaching $76.84. Both benchmarks still sat near three-month lows, however, suggesting markets broadly expect the deal to hold even if Trump’s rhetoric introduced a degree of fresh uncertainty.

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