Trump under G7 spotlight over Iran war and nuclear talks stalemate as drones downed near Hormuz
President Trump confronts sceptical G7 allies in France as his administration grapples with slow-moving Iran negotiations, drone exchanges over the Strait of Hormuz and unresolved questions about Tehran’s long-term nuclear ambitions.
A fragile peace process
The US and Iran are inching toward an interim deal to reopen the Strait of Hormuz, but negotiations remain plagued by slow courier communications and lingering ambiguities. US Central Command announced on 13 June that it had shot down multiple Iranian drones targeting commercial ships in the area, while talks were still underway. The exchange underlined the fragility of the process, which has been described by officials as frustratingly opaque. It remains unclear whether the adversaries will move from indirect channels to face-to-face talks for a more comprehensive agreement.
Last year was the trade wars, and now this year you get to talk about the actual war that is causing so much turmoil in the global economy.
- US Central Command downs Iranian drones near Strait of Hormuz
- G7 leaders arrive in France for summit
- Talks for interim deal continue, slowed by couriers
- Sunset clauses of 2015 nuclear deal set to expire, allowing enrichment expansion
The nuclear question
At the heart of the conflict is Iran’s nuclear programme. Critics of the 2015 nuclear deal, including Jacob Olidort of the America First Policy Institute, argue that its time-limited terms allowed Iran to eventually pursue a weapon. Olidort told the BBC that the deal’s sunset clauses “in effect nullify their effectiveness.” One clause restricts uranium enrichment for 15 years, meaning that by January 2031 Iran could theoretically expand its programme, according to analyst Davenport.
Baroness Ashton, who negotiated the deal for the UN Security Council, countered that the deal’s primary goal was to prevent an Iranian bomb, and it succeeded. She said, “If President Trump felt that the deal was inadequate, then the answer was to build on it, not to rip it up.” Davenport noted that many other provisions were permanent, including IAEA safeguards, which would have provided assurance that any move toward a nuclear weapon would be quickly detected.
There was always a criticism that we should have covered all kind of things. But the critical question was, 'Could we prevent any fear that Iran was going to build a nuclear weapon?' And we did that.
G7 summit pressure
European leaders are using this week’s G7 summit in France to intensify pressure on President Trump. French President Emmanuel Macron invited the Saudi, Qatari and Egyptian leaders to the talks, underscoring the region’s stake in the strait’s reopening. A former Trump official said, “I am sure there will be pressure on the president to bring this to a conclusion.” European governments fear the day after any deal and are anxious about the war’s broader fallout, even as they promise to help secure shipping lanes once an agreement is signed.
Economic fallout
The conflict has sent ripples through the global economy. US inflation reached 4.2 percent in May, the highest in three years, driven by elevated petrol and diesel prices. The Bank of Japan is expected to raise rates to a 31-year high, and the European Central Bank raised rates on Wednesday amid inflation fears. While Europe has avoided an energy crisis by increasing imports, the war continues to inflate costs and unsettle markets worldwide.
