The United States and Iran remain engaged in negotiations aimed at reaching a permanent peace agreement, despite renewed military clashes in the Strait of Hormuz that threatened to derail a fragile ceasefire.
A U.S. official, speaking on condition of anonymity, said technical-level discussions between Washington and Tehran are continuing, reaffirming the U.S. commitment to pursuing a diplomatic solution.
The talks come after two days of escalating violence, during which the U.S. launched strikes on Iranian military targets in response to attacks on vessels in the Strait of Hormuz. Iran retaliated by targeting U.S. military bases in the region, including facilities in Kuwait and Bahrain.
The latest confrontations have raised concerns about the stability of the interim ceasefire agreement signed in mid-June. Iran also warned that any attack on its infrastructure would be met with a reciprocal response, with Supreme National Security Council Secretary Mohammad Bagher Zolghadr extending the warning to Israel.
Regional mediators, including Qatar, have reportedly been working to reduce tensions as both countries continue efforts to negotiate a lasting peace agreement, with a tentative target of reaching a deal by mid-August.
The renewed hostilities have disrupted maritime traffic through the Strait of Hormuz, a critical global energy corridor, contributing to higher oil prices. Brent crude rose more than six per cent to approximately US$76.50 per barrel, though prices remain well below the peak reached earlier this year amid fears of a broader regional conflict.
U.S. President Donald Trump suggested earlier this week that the ceasefire was effectively “over,” but said negotiations should continue despite the latest violence.
The diplomatic process also slowed following funeral ceremonies for former Iranian Supreme Leader Ali Khamenei, who was killed in an airstrike at the start of the conflict. His successor, Mojtaba Khamenei, has not appeared publicly since assuming leadership, prompting speculation about his role in the ongoing negotiations.
The latest escalation has also complicated implementation of the interim peace agreement, which was intended to restore safe navigation through the Strait of Hormuz after the conflict severely disrupted shipping.
Washington has accused Iran of attacking commercial vessels and failing to meet the conditions of the interim agreement, while Tehran has accused the United States of interfering in its control of the strategic waterway.
The U.S. has maintained that Iran will only regain access to frozen overseas funds if it complies with the terms of the memorandum of understanding.
Meanwhile, Iran has proposed requiring ships transiting the Strait of Hormuz to seek its permission and potentially pay transit fees, a proposal rejected by the United States and other major powers, which insist that international shipping must retain unrestricted passage through the waterway.
Beyond maritime security, negotiations continue to focus on Iran’s nuclear program. The Trump administration is seeking a long-term halt to Iran’s uranium enrichment activities and wants Tehran to relinquish its existing stockpile of highly enriched uranium as part of any comprehensive peace agreement.
