Pezeshkian defends US-Iran MoU as way out of ‘neither war nor peace’

Iran faces mounting economic pressure as Washington intensifies its sanctions campaign.

Iranian President Masoud Pezeshkian has defended a recent memorandum of understanding (MoU) with the United States as the best way for Iran to move beyond what he described as a situation of “neither war nor peace”.

In a speech published by state-run IRNA early on Sunday, August 23, Pezeshkian said members of Iran’s Supreme National Security Council considered the memorandum the best possible agreement based on dignity, wisdom and the national interest.

“There is not a single provision in this agreement that amounts to capitulation,” Pezeshkian said. “The supreme leader sets the policies, and we will follow that path.”

The MoU, signed by US President Donald Trump in June, set a 60-day deadline for ending the war with Iran and reaching an agreement on Tehran’s nuclear programme. The deadline expired last week without a breakthrough, while disagreements remain over key issues, including the reopening of the Strait of Hormuz, a crucial route for global shipping.

Pezeshkian said Iran could not remain in the current state indefinitely and linked the agreement to the country’s economic prospects, arguing that uncertainty was preventing investment.

“Capital and money are extremely sensitive to risk,” he said, according to The Associated Press. “We have to remove this risk from the country.”

Pezeshkian says Iran facing ‘many problems’ as US sanctions intensify

Pezeshkian also acknowledged that Iran was facing “many problems” as Washington prepares a fresh sanctions campaign aimed at increasing economic pressure on Tehra, AFP reported.

He said the government was working to tackle inflation, unemployment and livelihood difficulties while seeking to protect the future of the Iranian people.

“We are striving with all our hearts to overcome inflation, livelihood problems, unemployment, and to secure the future of the people, so that they can live with dignity and pride,” Pezeshkian said.

He described the situation as a “full-scale economic, military and security war”, as Iran faces mounting pressure from US measures and restrictions on its trade.

The latest pressure follows Trump’s announcement of what he called the “most crushing economic operation” against Iran.

In a post on Truth Social, Trump declared an “ECONOMIC D-DAY” and warned that countries providing Iran with a financial lifeline would face “TREMENDOUS Economic Consequences”. He said Washington would target channels supporting Iran’s economy, including oil smuggling, financial transactions, exchange houses, ship registries and front companies.

The campaign is intended to further isolate Tehran and increase pressure on its leadership to reach an agreement over its nuclear programme and the Strait of Hormuz.

Nearly six months into the conflict involving the United States and Israel, Iran’s economy is under severe strain from sanctions and a naval blockade that has made it difficult for the country to export oil, its most valuable commodity.

Iranian Foreign Minister Abbas Araghchi rejected Washington’s latest economic pressure campaign, describing it as a familiar US strategy. He said Tehran was not afraid of economic pressure or military threats and maintained that the sanctions would fail.

Iran has also warned countries against supporting the US campaign. Mohsen Rezaei, the new head of Iran’s Supreme National Security Council, threatened retaliation if countries friendly to Tehran were targeted by US measures.

Meanwhile, Pakistan is continuing diplomatic efforts to ease tensions between Iran and the United States.

Pakistan’s Army Chief Field Marshal Asim Munir is scheduled to visit Tehran on Monday as Islamabad seeks to support de-escalation efforts and strengthen bilateral cooperation. His visit comes amid continuing efforts to facilitate dialogue between Tehran and Washington.