United States President Donald Trump has called off a planned military strike on Iran, saying he would cancel the attack only if a deal reopening the Strait of Hormuz can be reached quickly. He announced the decision on Saturday, United States time. Negotiations are due to begin on Monday.
In a post on Truth Social, Trump said he had agreed, "for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL". He set two conditions. The first is the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT". The second is an end to what he described as Iran's nuclear threat. Israel, he wrote, "joins me in this commitment".
The strait is still shut. Iran said in July that it had attacked two tankers transiting under United States naval escort, and other vessels turned back rather than make the passage. Brent crude closed above US$88 a barrel on Friday after gaining more than 20 per cent across July.
Iran has not accepted the terms. Foreign Minister Abbas Araghchi warned Washington against "adventurous action" and said Iran would respond decisively to any further aggression. The Iranian outlet Nournews said that strikes on Iranian energy infrastructure would be answered against oil and gas facilities in Saudi Arabia, the United Arab Emirates, Qatar and Israel.
Saudi Crown Prince Mohammed bin Salman spoke with Trump on Saturday and urged him not to order another round of strikes. Jared Kushner, special envoy Steve Witkoff and Secretary of State Marco Rubio are handling the negotiations.
Israel's own position is narrower than the halt suggests. Energy Minister Eli Cohen, a member of Prime Minister Benjamin Netanyahu's security cabinet, said Israel has close security and intelligence coordination with the United States and would act with or without an agreement. "If Iran attempts to renew its nuclear programme or advance its ballistic missile industries, we will be there," Cohen said. "We will take action." The Times of Israel reported that Israeli officials learned the attack had been cancelled from the Truth Social post itself.
For Australia the material question is fuel. On 28 July the Commonwealth and Western Australian governments announced a jointly funded $4 million pre-feasibility study into a large-scale oil refinery at Karratha, proposed by Perdaman. It would be the first new refinery of that scale built in Australia since the 1960s.
The study sits inside a $15 billion federal fuel security package. That package includes a $3.2 billion government-owned Australian Fuel Security Reserve, a $7.5 billion Fuel and Fertiliser Security Facility, $3.3 billion in fuel excise reduction and road user charge relief, and $475 million in government loans to Perdaman's Project Ceres. Of the $10 million set aside for refining feasibility work, the Karratha study takes $4 million.
“The longer war in the Middle East goes on the greater the impact on Australia will be," Prime Minister Anthony Albanese said when the study was announced, alongside Western Australian Premier Roger Cook.”
Nothing has been signed. The strait remains closed, no ceasefire has been declared, and the halt holds only while Trump judges a deal to be within reach. Talks begin Monday, United States time.
