US President Donald Trump has signalled a reliance on economic pressure rather than new military strikes to push Iran toward a deal, saying Tehran is in "very bad shape" financially with soaring inflation and difficulty paying its own troops. The US has maintained a naval blockade against Iranian ports since mid-April, and oil prices hovered around $78 a barrel on Monday.
Iran's Supreme National Security Council demanded an end to US threats, the lifting of sanctions, and the release of frozen assets before reopening the Strait of Hormuz. The Islamic Revolutionary Guard Corps confirmed the waterway remains blocked until all conditions are met. Tehran said it would not hold direct talks with Washington while the US violates a June memorandum of understanding, which unravelled within days of its signing.
Vice President JD Vance said the administration is applying diplomatic, economic, and military tools simultaneously. Meanwhile, Iran and Oman are in the final stages of talks on new shipping routes through the strait. The conflict began on February 28, when the US and Israel killed Iranian Supreme Leader Ali Khamenei.