{"id":64655,"date":"2026-07-12T10:08:16","date_gmt":"2026-07-12T14:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-reports-collapsed-iran-deal-following-drone-strike-iraq-pm-heads-to-washington\/64655\/"},"modified":"2026-07-12T10:08:16","modified_gmt":"2026-07-12T14:08:16","slug":"trump-reports-collapsed-iran-deal-following-drone-strike-iraq-pm-heads-to-washington","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-reports-collapsed-iran-deal-following-drone-strike-iraq-pm-heads-to-washington\/64655\/","title":{"rendered":"Trump Reports Collapsed Iran Deal Following Drone Strike; Iraq PM Heads to Washington"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Donald Trump<\/strong> revealed that a comprehensive deal with <strong>Iran<\/strong> collapsed on Saturday after Iranian forces allegedly struck a commercial vessel with a drone just two hours after concessions were reached.<\/li>\n<li><strong>Iraqi Prime Minister Ali al-Zaidi<\/strong> is traveling to <strong>Washington<\/strong> with a &quot;message of confidence,&quot; signaling Iraq&#39;s intent to remain neutral in regional conflicts while seeking major <strong>U.S.<\/strong> investment in its energy sector.<\/li>\n<li>Despite the reported drone attack, <strong>Trump<\/strong> asserted in an <strong>NBC<\/strong> interview that the <strong>Strait of Hormuz<\/strong> remains accessible to commercial traffic, aiming to soothe global energy markets.<\/li>\n<li><strong>Iraq<\/strong> is prepared to sign multiple memorandums of understanding with <strong>U.S.<\/strong> energy giants like ExxonMobil (<a href=\"\/stock\/XOM\">XOM<\/a>) and Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>) to boost oil production capacity and develop alternative export routes.<\/li>\n<\/ul>\n<h2>Diplomatic Volatility and Maritime Escalation<\/h2>\n<p><strong>President Donald Trump<\/strong> told <strong>CNN<\/strong> on Sunday that a potential breakthrough with <strong>Tehran<\/strong> was derailed by a sudden act of aggression. According to the President, the <strong>Iranian<\/strong> government had &quot;conceded everything&quot; in a deal finalized yesterday, only to launch a drone strike against a ship two hours later. This development marks a significant setback in efforts to end the <strong>2026 Iran war<\/strong>, which has seen repeated tit-for-tat strikes and disrupted global shipping.<\/p>\n<p>The reported attack follows a period of intense military pressure, with the <strong>U.S.<\/strong> recently conducting 140 retaliatory strikes on <strong>Iranian<\/strong> targets. <em>Market analysts suggest this volatility will likely keep <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> elevated as the prospect of a lasting ceasefire remains elusive.<\/em> Despite the incident, <strong>Trump<\/strong> maintained during an <strong>NBC<\/strong> &quot;Meet the Press&quot; interview that the <strong>Strait of Hormuz<\/strong> is &quot;open&quot; and &quot;accessible,&quot; a statement intended to prevent a panic in the energy markets.<\/p>\n<h2>Iraq Seeks Strategic Neutrality and Investment<\/h2>\n<p>Amidst the regional turmoil, <strong>Iraqi Prime Minister Ali al-Zaidi<\/strong> published an op-ed in <strong>The Washington Post<\/strong> ahead of his Monday meeting with <strong>President Trump<\/strong>. <strong>Al-Zaidi<\/strong> emphasized that his government stands &quot;aloof from alliances and regional conflicts,&quot; focusing instead on internal reform and economic sovereignty. The Prime Minister is leading a high-level delegation to move the <strong>U.S.-Iraq<\/strong> relationship &quot;beyond crisis management to opportunity creation.&quot;<\/p>\n<p>A central pillar of <strong>al-Zaidi&#39;s<\/strong> visit is the expansion of <strong>Iraq&#39;s<\/strong> energy infrastructure to reduce its dependence on <strong>Iranian<\/strong> gas and mitigate the risks of <strong>Strait of Hormuz<\/strong> closures. Government spokesperson <strong>Haider al-Aboudi<\/strong> confirmed that <strong>Iraq<\/strong> expects to sign deals with several <strong>U.S.<\/strong> companies to increase oil production. These agreements are viewed as critical for <strong>Iraq<\/strong> to establish alternative export outlets, ensuring its economy remains resilient despite the ongoing maritime conflict between the <strong>U.S.<\/strong> and <strong>Iran<\/strong>.<\/p>\n<h2>Market and Security Implications<\/h2>\n<p>The dual track of a collapsed <strong>Iran<\/strong> deal and a deepening <strong>U.S.-Iraq<\/strong> partnership creates a complex landscape for energy investors. While <strong>Trump&#39;s<\/strong> assurance of an open <strong>Strait of Hormuz<\/strong> provides some short-term stability, the reality of continued drone strikes suggests a high &quot;war premium&quot; will persist for tankers. <em>Investors are closely watching for the formalization of energy contracts in Baghdad, which could provide long-term growth opportunities for Western oil majors.<\/em><\/p>\n<p>Furthermore, <strong>al-Zaidi&#39;s<\/strong> commitment to disarming militias by a <strong>September 30<\/strong> deadline is a key demand of the <strong>Trump<\/strong> administration. Success in this area would not only stabilize <strong>Iraq<\/strong> but also diminish <strong>Iran&#39;s<\/strong> regional leverage. As the <strong>U.S.<\/strong> prepares to end its anti-ISIS mission in <strong>Iraq<\/strong>, the transition to a purely economic and strategic partnership will depend heavily on the security guarantees <strong>al-Zaidi<\/strong> can provide during his stay in <strong>Washington<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Donald Trump revealed that a comprehensive deal with Iran collapsed on Saturday after Iranian forces allegedly struck 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