Iran has threatened to launch a new military offensive if diplomatic efforts to end its war with the United States fail, as Washington ruled out extending an interim ceasefire agreement that has already begun to unravel.
A senior Iranian official told Reuters on Monday that Tehran was preparing to adopt a “fully offensive” posture after negotiations on a permanent end to the conflict stalled.
The official said Iran could take military action in the Strait of Hormuz and the wider region, including a “timely and precise” attack aimed at breaking the US naval blockade if diplomacy failed.
The warning came as efforts to revive peace talks and restore normal oil tanker traffic through the strategic waterway appeared to have stalled.
The war began on February 28 when the United States and Israel launched attacks on Iran.
Ceasefire deal under strain
Iran and the US signed a memorandum of understanding on June 17 that declared the “immediate and permanent termination of military operations on all fronts” and gave both sides 60 days to reach a broader agreement on Iran’s nuclear programme and US sanctions.
The arrangement, however, quickly broke down over disagreements about control of the Strait of Hormuz, a vital shipping route through which about one-fifth of global oil and liquefied natural gas previously passed.
Iran maintains that a provision in the agreement gives it the right to manage the strait, which it shares with US ally Oman. Washington rejects that interpretation.
Hostilities resumed after Iran began firing on vessels it said were attempting to pass through Hormuz using an unauthorised route. US President Donald Trump subsequently declared the agreement “over” on July 7.
Asked on Monday whether Washington was seeking an extension of the interim agreement, Trump said no.
The Iranian official said the US must fulfil all provisions of the June memorandum within a few weeks before Tehran would consider further negotiations.
US opens reported back channel
Despite the growing tensions, there have been signs of behind-the-scenes diplomatic contacts.
Media reports said the Trump administration had opened back-channel discussions with Iran’s Islamic Revolutionary Guard Corps (IRGC), which has gained greater influence over Iran’s military and economy during the war.
Axios, citing two people familiar with the matter, reported that former US Director of National Intelligence Tulsi Gabbard spoke with an Iraqi Kurdish leader who has close ties to the IRGC. Through the intermediary, Washington reportedly sent a message to IRGC commander General Ahmad Vahidi.
Fox News later reported that Trump confirmed the contact.
The US administration was reportedly concerned about whether Iranian negotiators at the formal talks had the authority to speak for the IRGC. Vahidi, according to Axios, responded that he was aligned with Iran’s negotiators.
Trump’s son-in-law and special envoy, Jared Kushner, separately said US contacts with different parts of the Iranian government were more extensive than they had perhaps ever been.
Trump threatens Oman
The dispute over the Strait of Hormuz has also strained Iran’s relationship with Oman, which shares control of the strategic waterway and has been negotiating separately with Tehran over its management.
Iran said the two sides were close to reaching an agreement.
Trump, however, issued a threat against Oman, a longstanding US security partner, warning that Washington could attack the Gulf state if it interfered with US objectives.
“If Oman gets in the way, we’ll bomb the shit out of them,” Trump told Fox News.
Thousands of people have been killed in the conflict, mainly in Iran and Lebanon. Iran has also attacked US military bases and infrastructure in Oman, Jordan, Kuwait, Israel, the United Arab Emirates and Saudi Arabia.
Trump warned Americans on Friday to prepare for continued high fuel prices as the war disrupts energy markets.
Brent crude rose to a peak of $126 per barrel during the conflict, about 75% above pre-war levels. It settled more than $2 higher on Monday at $90.87 a barrel.
US motorists are also feeling the impact, with petrol prices rising above $4 per gallon, compared with less than $3 before the war, according to the American Automobile Association.
