President Donald Trump ruled out extending a temporary June cease-fire with Iran as diplomatic talks hit an impasse, and the United States vowed fresh economic measures. Meanwhile, commercial shipping remains disrupted as the Strait of Hormuz stays closed amid ongoing military posturing and intercepted regional drone attacks.
The interim agreement, which originally extended a tenuous truce by 60 days to pave the way for a permanent settlement, reached its deadline as diplomatic efforts ground to a halt. According to reporting from Reuters, the June memorandum of understanding called for an immediate and permanent termination of military operations on all fronts, but unravelled quickly over a bitter dispute regarding control of the strategic Strait of Hormuz.
When asked directly by reporters whether Washington intended to seek an extension of that interim agreement, President Donald Trump answered simply that it was not. The collapse of the diplomatic window has left the two nations staring down an uncertain military and economic landscape as regional security concerns mount.
The memorandum of understanding signed in June, though yet to be made public, extends a tenuous ceasefire announced in April by another 60 days to allow the warring countries to negotiate a permanent truce.
Under the deal, the U.S. will end its blockade of Iran’s ports while Tehran will restore the passage of oil tankers and other maritime traffic.
Strait of Hormuz Closures and Hardened Stances
The vital waterway connecting the Persian Gulf to the Gulf of Oman remains a primary flashpoint. According to reports, the shipping route will stay shut down unless Washington bends to Tehran’s demands.
Before the war disrupted maritime commerce, the strait handled roughly a fifth of the world’s oil and liquefied natural gas flows. Bloomberg noted that benchmark Brent crude prices climbed almost 6% over the week as hopes for a quick resolution evaporated.
The waterway, through which a fifth of the world’s oil and gas transited before the war, has emerged as a key sticking point in negotiations to bring a lasting end to almost six months of fighting.
The U.S. and Yemen’s Iran-aligned Houthis reported separate attacks on shipping on Tuesday as prospects for ending the Iran war appeared to dim, with Tehran saying the Strait of Hormuz would remain closed unless Washington accepts its conditions.
The attacks, in the Gulf of Oman leading to the strait and at the entrance to the Red Sea — both vital chokepoints for global oil supplies — come as the war shows no signs of ending despite repeated assertions from U.S. President Donald Trump of a deal being imminent.
Oil prices gained and global shares retreated amid renewed pessimism about a quick end to the conflict. Brent crude futures climbed 1.4% to settle at $88.91 per barrel and U.S. crude rose 1.3% to $83.20.
At the southern end of the Red Sea, four crew members were killed in a suspected Houthi attack on a small cargo vessel in the Bab el-Mandeb Strait on Tuesday, Yemen’s Transport Ministry said.
White House Position on Negotiations and Economic Pressure
In Washington, administration officials maintained that the door to talks remains firmly bolted shut until Tehran halts its maritime attacks. U.S. Vice President JD Vance told reporters during a White House briefing that every option remains available to the United States.
US Vice President JD Vance said on Thursday that “all options” remain on the table in dealing with Iran, including economic, military, diplomatic and covert pressure, while ruling out negotiations with Tehran until it stops shooting at commercial shipping in the Strait of Hormuz.
The president's been very clear: We're not talking to them, and we're not going to talk to them unless they stop shooting at commercial shipping, Vance said
Vance asserted that oil throughput through the strait has nearly rebounded to pre-conflict levels, pointing out that approximately 15 million barrels were transported overnight.
Last night, approximately 15 million barrels of oil were transported through the Strait of Hormuz,
he said, adding that the throughput had almost recovered to pre-conflict levels.
Regional Crossfire and Regional Investigations
The diplomatic stalemate has been accompanied by a fresh wave of regional incidents and military posturing. The Saudi Defense Ministry reported that air defenses intercepted and destroyed several drones launched from Iraqi territory targeting capital facilities in Riyadh and oil infrastructure in the kingdom’s Eastern Province.
In response to the Saudi report, the office of Iraqi Prime Minister Ali Faleh al-Zaidi ordered an immediate investigation, stating that the government will prosecute anyone found utilizing Iraqi territory to launch attacks against neighboring countries.