Iran and the United States are still at odds over reaching a definitive end to the Gulf conflict, according to a senior Iranian diplomat. Negotiations to revive the interim agreement from June and establish a timeline for its implementation have seen no progress.
Meanwhile, U.S. President Donald Trump has criticized Iran’s leadership once again, further undermining hopes for a peaceful resolution amid recent attacks on regional shipping lanes.
The June deal called for an immediate and permanent halt to military activities on all fronts but fell apart quickly. Trump declared it “over” in July, and Iran’s foreign ministry announced it was “suspended” a week later. The U.S. accuses Iran of not honoring its commitments under the deal, such as reopening key shipping routes in the Strait of Hormuz, while Tehran claims Washington has reneged on promises including lifting sanctions and unfreezing Iranian assets.
“Discussions facilitated by mediators include the U.S. returning to the interim deal and setting a clear schedule for fulfilling its obligations. There has been zero progress,” the Iranian source told Reuters.
Trump asserted on Wednesday that the U.S. controls the Strait of Hormuz, but Iran’s Strait Authority, which manages the waterway, states it remains closed until Iran’s conditions are met. Trump also called Iran “all talk and no action,” dismissing Iran’s threats and actions as the Middle East’s “bully.”
The conflict has resulted in significant casualties, mainly in Iran and Lebanon, since February 28, when U.S. and Israeli strikes targeted Iran. Iran has retaliated by attacking U.S. assets and infrastructure across nations including Oman, Jordan, Kuwait, Israel, the UAE, and Saudi Arabia.
The initial 60-day ceasefire set in June was meant to facilitate negotiations for a comprehensive nuclear agreement and the lifting of sanctions, but Iran’s government insists there is no extension because the period never officially began. The U.S. withdrew from the interim agreement shortly after it was signed, accusing Iran of violating the terms.
The Strait of Hormuz, a narrow passage between Iran and Oman, was a major route for about 20% of the world’s oil and liquefied natural gas shipments before the conflict escalated. Oil prices soared since February, peaking at around $126 per barrel, about 75% higher than pre-war levels, with fluctuations reflecting ongoing tensions.
Recent attacks include a suspected Houthi assault on a cargo vessel in the Bab el-Mandeb Strait, which killed four crew members, and a U.S. missile strike on a Panama-flagged cargo ship’s steering gear. Oil prices experienced volatility, with Brent crude around $88 and U.S. WTI crude near $83 per barrel as forecasts for 2026 oil demand were revised downward.















