US Israel Iran War Latest News:Â Iran and the United States remain deeply divided over efforts to reach a permanent agreement to end the war in the Gulf, with a senior Iranian source saying there has been no progress toward restoring an interim deal reached in June or setting a timetable for carrying out its terms.
The latest comments came as U.S. President Donald Trump renewed his criticism of Iran’s leadership, adding to concerns that a diplomatic solution to the crisis remains out of reach following fresh attacks involving shipping in the region on Tuesday.
The June agreement had called for an “immediate and permanent termination of military operations on all fronts.” However, the arrangement quickly fell apart. Trump said the agreement was “over” on July 7, while Iran’s foreign ministry described it as “suspended” a week later.
US Israel Iran War Latest News: Tehran and Washington Clash Over Strait of Hormuz
Washington has accused Tehran of failing to meet its commitment under the interim agreement to reopen the strategically important Strait of Hormuz, a major route for global energy shipments.
Iran, however, has accused the United States of failing to fulfill its own obligations. Tehran says Washington has not lifted its blockade of Iranian ports or released Iranian assets that remain frozen.
“One of the issues that is being discussed via mediators is the U.S. returning to the interim agreement and defining a time frame for implementing the commitments. There has been absolutely no progress on this issue,” the Iranian source said.
Trump said on Wednesday that the United States has “total control” over the Strait of Hormuz.
Iran’s Persian Gulf Strait Authority, however, rejected that claim and said the waterway remains blocked. The authority said the strait would not be reopened unless Iran’s conditions are met.
“Iran is all talk and no action, the Bully of the Middle East No Longer,” Trump said on his Truth Social platform. Trump has repeatedly shifted between threats of further escalation and claims that a peace agreement could be close.
US Israel Iran War Latest News: Iran Rejects Claims of Ceasefire Extension
Thousands of people have been killed since the conflict began, mainly in Iran and Lebanon, after the United States and Israel launched attacks against Iran on February 28. Iran has also attacked U.S. military assets and infrastructure in Oman, Jordan, Kuwait, Israel, the United Arab Emirates and Saudi Arabia.
The June interim agreement established a 60-day period that could be extended through mutual consent. During this period, Iran and the United States were expected to work toward a permanent agreement involving limits on Tehran’s nuclear program and the lifting of U.S. sanctions.
The Iranian source rejected a report from Turkey’s Anadolu news agency claiming that Pakistani government sources said the 60-day period had been extended.
“There is no talk of an extension because, from Iran’s perspective, there is no period that began and therefore nothing to extend. The United States violated the interim agreement 48 hours after it was reached and withdrew from it a few days later,” the source told Reuters.
US Israel Iran War Latest News: Shipping Attacks Raise Gulf Tensions
The latest diplomatic setback has come alongside continued concerns over commercial shipping in the Gulf.
The Strait of Hormuz, a narrow waterway between Iran and Oman that connects the Persian Gulf with the Gulf of Oman, is one of the world’s most important energy routes. Before the war, roughly one-fifth of global oil and liquefied natural gas shipments passed through the waterway.
Oil markets have remained highly volatile since the conflict began in February. Brent crude futures climbed as high as $126 a barrel, about 75% above pre-war levels, as traders assessed the risk of disruptions to Gulf energy supplies and reacted to changing signals from the peace negotiations.
Separate incidents involving shipping were reported on Tuesday, further increasing concerns about the security of the waterway and the potential impact on global energy supplies.
Oil prices initially moved higher on Wednesday but later stabilized in volatile trading after forecasts for global oil demand in 2026 were lowered. Brent crude was trading at about $88 a barrel, while U.S. West Texas Intermediate crude was around $83 a barrel.
The lack of progress on restoring the interim agreement, combined with continued disputes over the Strait of Hormuz and fresh attacks on shipping, has left the prospects for a broader U.S.-Iran peace agreement uncertain.
