Iran peace deal collapses

The agreement to end the war between the United States and Iran has collapsed, after Iran attacked commercial ships in the Strait of Hormuz and the United States responded by striking Iranian territory.

President Donald Trump said on 8 July that the Islamabad Memorandum, signed only three weeks ago, was "over".

The Islamabad Memorandum

The memorandum was agreed in June after talks brokered mainly by Pakistan, with help from Qatar, Saudi Arabia, Turkey and Egypt. Trump and the Iranian president, Masoud Pezeshkian, signed it remotely on 17 June.

The 14-point framework provided for an end to military strikes, the reopening of the Strait of Hormuz to shipping, the end of the American naval blockade of Iranian ports and a 60-day extension of the ceasefire. The United States also temporarily waived sanctions on Iran's oil exports.

The key issues, including Iran's nuclear programme and its stockpile of enriched uranium, were left for further talks during the 60-day ceasefire.

What went wrong

Iran attacked several commercial vessels in the Strait of Hormuz, in what it said was an assertion of its sovereignty over the waterway. The United States responded with strikes on Iranian targets.

The attacks have shattered a brief period of calm and raised fears of a return to full-scale war.

The war so far

The war began on 28 February, when Israel and the United States launched strikes on Iran that killed the supreme leader, Ali Khamenei. His son, Mojtaba Khamenei, was chosen to succeed him.

The fighting has caused thousands of deaths, disrupted shipping in the Gulf and sent energy prices soaring around the world. A ceasefire agreed in April had been extended several times before the memorandum was signed.

Oil prices

Oil prices have risen again on the news. The war has already pushed up inflation and mortgage rates in Britain, and economists warn that further disruption could hit the economy.

Britain's position

Britain has allowed the United States to use British bases for what it describes as defensive operations, but has said it will not take part in enforcing a blockade of Iran.

The Strait of Hormuz is one of the most important shipping lanes in the world, and any renewed closure would affect energy supplies far beyond the Gulf.

What next?

Pakistan and other mediators are expected to try to revive the talks. But with attacks continuing, the prospects for a lasting peace look uncertain.