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Iran is preparing to shift to a “fully offensive” military posture after efforts to negotiate a permanent end to its war with the United States stalled, a senior Iranian official told Reuters on Monday, raising fears of a wider escalation centred on the strategic Strait of Hormuz.
The warning came after US President Donald Trump ruled out extending an interim ceasefire agreement between Washington and Tehran. The two sides had been expected to reach a final peace agreement by Monday under a memorandum of understanding signed in June.
The senior Iranian official said Tehran was prepared to take “difficult decisions” if diplomacy failed and warned that Iran could launch a “timely and precise” military operation to break a US naval blockade.
“Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region,” the official told Reuters.
The June 17 memorandum had given the US and Iran 60 days to negotiate a broader agreement covering Iran's nuclear programme and US sanctions.
The agreement called for the “immediate and permanent termination of military operations on all fronts”. However, the arrangement unravelled amid a dispute over control and navigation rights in the Strait of Hormuz.
Iran says a provision of the memorandum gives it the right to manage the strategic waterway, which it shares with Oman. Washington has rejected that interpretation.
The disagreement has also disrupted commercial shipping through the strait, a vital route for global energy supplies. Before the war, about a fifth of the world's oil and liquefied natural gas shipments passed through the waterway.
Iran has warned that any failure to resolve the dispute could further escalate military tensions and prevent the restoration of normal tanker traffic.
Asked on Monday whether Washington was seeking to extend the interim agreement reached in June, Trump said no.
Iran, meanwhile, has set a deadline of several weeks for the US to implement provisions of the previous agreement before Tehran considers further negotiations, according to the Iranian official.
Mediators are expected to communicate the Iranian position to Washington and other regional governments.
Iran is also separately negotiating with Oman over the management of the Strait of Hormuz. Tehran has said those discussions are close to an agreement, although progress has been slow.
Trump has issued increasingly aggressive warnings over the waterway. According to the report, he told Fox News that if Oman obstructed US efforts, “we'll bomb” the country.
Iranian Foreign Ministry spokesperson Esmail Baghaei on Monday said Tehran already has laws governing its sovereign rights over the Persian Gulf, the Strait of Hormuz and the Sea of Oman.
🟢 PROS / ADVANTAGES
- Increased media coverage indicates rising institutional and public interest in this business sector.
- Consolidation of multi-agency reports points to strategic market moves and expansion opportunities.
🔴 CONS / RISKS
- Heightened market volatility and varying analyst expectations introduce near-term execution risks.
- Implementation dependencies and compliance checkpoints may slow down the projected business timeline.