Iran is poised to adopt a "fully offensive" military posture as negotiations for a permanent end to the conflict with the United States have stalled, according to a senior Iranian official. This development follows Washington's decision to reject an extension of the temporary cease-fire agreement.
Progress on peace talks and the resumption of oil tanker traffic through the Strait of Hormuz has reportedly halted, raising concerns about an extended conflict that began with U.S. and Israeli attacks on Iran on February 28. The Iranian official indicated that Tehran is prepared to escalate tensions in the Strait of Hormuz and the broader region, stating that Iran would initiate a "timely and precise" military strike to break the U.S. naval blockade if diplomatic efforts fail.
A memorandum of understanding signed on June 17 had set a 60-day deadline, which concluded on Monday, for a final peace agreement addressing Iran's nuclear program and U.S. sanctions. However, the agreement, which declared an "immediate and permanent termination of military operations on all fronts," quickly faltered due to a dispute over control of the Strait of Hormuz.
When asked by reporters on Monday about extending the interim agreement, U.S. President Donald Trump stated that the U.S. was not seeking an extension.
In parallel diplomatic efforts, media reports suggest President Trump has initiated back-channel discussions with the Islamic Revolutionary Guard Corps (IRGC). Axios, citing sources with direct knowledge, reported that former Director of National Intelligence Tulsi Gabbard communicated with an Iraqi Kurdish leader close to the IRGC, through whom a message was delivered to IRGC commander General Ahmad Vahidi. Fox News later reported that Trump confirmed these discussions in an interview.
Jared Kushner, Trump's son-in-law and special envoy, told Fox News Channel's Chief Foreign Correspondent Trey Yingst on Monday that conversations between the U.S. government and various Iranian entities are likely more robust than ever before.
The dispute over the Strait of Hormuz, a vital waterway for global oil and natural gas transport, centers on Iran's interpretation of point 5 of the memorandum, which it claims grants it the right to manage the strait. The U.S. has rejected this interpretation. Hostilities resumed when Iran began firing on vessels attempting to transit the strait on an unapproved route, leading Trump to declare the pact "over" on July 7.
The Iranian official emphasized that the U.S. must fully meet the provisions of the MoU within a few weeks as a prerequisite for further negotiations. Despite Iran's projected resilience, its leaders are reportedly concerned that further economic sanctions could exacerbate hardships, reignite domestic unrest, and further undermine the legitimacy of the Islamic Republic. Iran entered the conflict already facing high inflation, a weakening currency, energy shortages, and sanctions, and must now contend with damaged infrastructure, disrupted trade, lost production, and reconstruction costs.
Separately, Iran has been in negotiations with Oman regarding the management of the strait, with both sides reportedly close to a deal. However, President Trump issued a threat against Oman, stating, "If Oman gets in the way, we'll bomb the s--t out of them." Thousands have been killed in the conflict, primarily in Iran and Lebanon, with Iran having targeted U.S. military bases and infrastructure in countries including Oman, Jordan, Kuwait, Israel, the United Arab Emirates, and Saudi Arabia.
President Trump has warned Americans to prepare for continued high fuel prices as a consequence of the ongoing war. Benchmark Brent crude oil futures have surged during the conflict, and gasoline prices for U.S. consumers have risen significantly above pre-war levels.