A 60-day deadline for the United States and Iran to reach a final agreement under a June memorandum of understanding expired Monday, with neither side able to resolve a dispute over control of the Strait of Hormuz. The strait, through which 20% of the world’s oil and liquefied natural gas passes, has been blocked since February 28 when the US and Israel launched attacks on Iran.
US President Donald Trump threatened to bomb Oman if it interferes with Washington’s objectives in the region, while Iran announced it would adopt a ‘fully offensive’ policy if diplomacy fails. In a Monday phone interview with Fox News, Trump stated, “If Oman gets in the way, we’ll bomb the s**t out of them.” He also reiterated that Iran should “put up the white flag of surrender” to end the conflict. The White House did not immediately respond to requests for comment on the remarks.
Iran’s shift in policy comes as Oman and Iran discuss joint management of the strait, a proposal the US opposes. A senior Iranian official told Reuters that Tehran would conduct “timely and precise” military action to break the US naval blockade if negotiations collapse. The official added, “Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region.”
Deadline Passes Without Agreement
The June 17 memorandum of understanding (MoU) set a 60-day window for the US and Iran to finalize a broader deal addressing Iran’s nuclear program and sanctions. The agreement also called for an “immediate and permanent termination of military operations on all fronts.” However, disputes over control of the Strait of Hormuz derailed progress. Iran claims Point 5 of the MoU grants it management rights over the strait, while the US rejects this interpretation. Both sides have since resumed hostilities, with Iran blocking the waterway and the US maintaining a naval blockade.
Oman Caught Between US Demands and Regional Diplomacy
Oman, a longtime US ally and neutral mediator in the region, has faced increasing pressure as it engages in talks with Iran over the strait’s future. Oman and Iran announced a joint committee in June to discuss management of the strait, including potential fees for shipping services. The US has opposed any such arrangement, with Trump framing Oman’s involvement as interference. In a separate development, Trump also suggested the US has a backchannel with Iran’s Islamic Revolutionary Guard Corps (IRGC), a claim the IRGC denied.
Economic and Geopolitical Fallout
The stalled negotiations have driven up global fuel prices and intensified regional instability. The Strait of Hormuz is a critical chokepoint for oil shipments, and disruptions have already impacted markets. Analysts warn that further escalation could trigger broader conflict, particularly as Iran threatens offensive actions and the US maintains a hardline stance. Meanwhile, Oman’s balancing act between its US alliance and regional diplomacy has drawn scrutiny, with Trump’s threats raising questions about the sultanate’s neutrality.
Background: The Conflict’s Origins
The current crisis began on February 28, when the US and Israel launched attacks on Iran, citing concerns over its nuclear program and regional aggression. The June MoU represented a tentative step toward de-escalation, but disagreements over the strait’s control have since dominated discussions. Neither side has indicated willingness to compromise, and the expiration of the 60-day deadline marks a significant setback for diplomatic efforts.