US-Israel-Iran War Latest News: US Backs Off From Iran as Trump Claimed Talks with Iran are Continuing After Calling Off Planned ‘Massive Attack’ on Iran

President Donald Trump called off a planned "massive attack" on Iranian infrastructure, claiming that direct negotiations between the U.S. and Tehran are resuming.

By: Adeeba Naeem
Last Updated: August 5, 2026 12:52:25 IST

US-Israel-Iran War Latest News: President Donald Trump called off a planned “massive attack” on Iranian infrastructure, claiming that direct negotiations between the U.S. and Tehran are resuming. However, a diplomatic dispute has emerged, as the Iranian government explicitly denies participating in any direct talks with Washington.

US-Israel-Iran War Latest News: U.S. Decision to Pause Strikes

President Trump announced via Truth Social and reporters aboard Air Force One that he halted imminent, large-scale bombings against Iran’s energy and power infrastructure.

US-Israel-Iran War Latest News: Current Situation and Market Impact

While Defense Secretary Pete Hegseth reiterated that the Pentagon remains “locked and loaded” for World War II-level military actions if diplomacy fails, the immediate pause has briefly de-escalated global economic anxiety. 

Following Trump’s announcement, global oil prices fell sharply, with Brent crude futures sliding over 4.5% to roughly $83.85 per barrel. Despite the pause, the Strait of Hormuz remains heavily militarized and effectively closed.

US-Israel-Iran War Latest News: Core of the Emerging Deal

The current diplomatic push seeks to restore a collapsed June ceasefire and undo a devastating naval blockade.

  • The “Two-Phase” Strategy: U.S. Secretary of State Marco Rubio confirmed that “Phase One” focuses exclusively on the immediate reopening of the Strait of Hormuz. “Phase Two” will address the complete denuclearisation of Iran.

  • The Oman Split-Corridor: Since Iran objects to direct talks with Washington, negotiations have primarily funneled through Muscat. The emerging layout establishes a “middle corridor” with a one-way path: ships enter through an Iranian-controlled lane and exit through an Omani-controlled lane.

  • The Transit Fee Dispute: A temporary friction point remains over service fees. Iran wants to collect environmental and security fees. Conversely, the U.S. insists temporary routes must require zero permits or fees, declaring that no single party owns international navigation.

US-Israel-Iran War Latest News: Escalations on the Ground

Despite the diplomatic optimism, the region remains incredibly volatile, with active combat occurring on parallel fronts:

  • The Shadow War in the Skies: Iran’s Revolutionary Guard (IRGC) remains in full combat readiness. Concurrently, Iran executed two nationals this week, convicted of passing sensitive military coordinates to Israel during the war.

  • Houthi Blockade on Saudi Arabia: Proving the fragility of regional infrastructure, Iran-backed Houthi rebels launched a drone attack that suspended all service at Saudi Arabia’s Najran Airport. This follows the Houthis declaring their own total maritime blockade on Riyadh.

  • Strait of Hormuz Incidents: Underscoring the danger, a commercial cargo ship reported being struck by an unidentified projectile off the coast of Oman just hours after Trump’s initial pause announcement.

Trump has issued a final warning to Tehran, noting that the Strait of Hormuz will open very soon, but if Iranian leaders back out of the draft agreement, “they are going to get hit really hard.”

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