Iran to shift to ‘fully offensive’ posture as US peace talks stall: Report

Iran is preparing to shift to a “fully offensive” military posture after efforts to negotiate a permanent end to its war with the United States stalled, a senior Iranian official told Reuters on Monday, raising fears of a wider escalation centred on the strategic Strait of Hormuz.

The warning came after US President Donald Trump ruled out extending an interim ceasefire agreement between Washington and Tehran. The two sides had been expected to reach a final peace agreement by Monday under a memorandum of understanding signed in June.

The senior Iranian official said Tehran was prepared to take “difficult decisions” if diplomacy failed and warned that Iran could launch a “timely and precise” military operation to break a US naval blockade.

“Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region,” the official told Reuters.

Iran-US peace talks stall

The June 17 memorandum had given the US and Iran 60 days to negotiate a broader agreement covering Iran's nuclear programme and US sanctions.

The agreement called for the “immediate and permanent termination of military operations on all fronts”. However, the arrangement unravelled amid a dispute over control and navigation rights in the Strait of Hormuz.

Iran says a provision of the memorandum gives it the right to manage the strategic waterway, which it shares with Oman. Washington has rejected that interpretation.

The disagreement has also disrupted commercial shipping through the strait, a vital route for global energy supplies. Before the war, about a fifth of the world's oil and liquefied natural gas shipments passed through the waterway.

Iran has warned that any failure to resolve the dispute could further escalate military tensions and prevent the restoration of normal tanker traffic.

Trump rules out extending ceasefire

Asked on Monday whether Washington was seeking to extend the interim agreement reached in June, Trump said no.

Iran, meanwhile, has set a deadline of several weeks for the US to implement provisions of the previous agreement before Tehran considers further negotiations, according to the Iranian official.

Mediators are expected to communicate the Iranian position to Washington and other regional governments.

Iran is also separately negotiating with Oman over the management of the Strait of Hormuz. Tehran has said those discussions are close to an agreement, although progress has been slow.

Trump has issued increasingly aggressive warnings over the waterway. According to the report, he told Fox News that if Oman obstructed US efforts, “we'll bomb” the country.

Tehran insists on Hormuz rights

Iranian Foreign Ministry spokesperson Esmail Baghaei on Monday said Tehran already has laws governing its sovereign rights over the Persian Gulf, the Strait of Hormuz and the Sea of Oman.

Baghaei said the Foreign Ministry would cooperate with Iran's Parliament on legislation concerning the country's territorial and maritime rights.

“Regarding the issues related to Iran's sovereign rights in the Persian Gulf, the Strait of Hormuz, and the Sea of Oman, we already have laws,” Baghaei said, adding that Tehran would take both existing legislation and current developments into account.

His remarks came days after Trump said he planned to declare the Strait of Hormuz “a territory of the United States” after the war with Iran.

Speaking at a Republican rally in Long Island on Friday, Trump said that after defeating Iran, he would soon make the declaration.

Risk of wider regional conflict

The latest escalation comes as the conflict has already spread across the Middle East, with thousands reportedly killed, mainly in Iran and Lebanon, since the US and Israel launched attacks on Iran on February 28.

Iran has also targeted US military bases and infrastructure in several countries, including Oman, Jordan, Kuwait, Israel, the United Arab Emirates and Saudi Arabia, according to the report.

Concerns over a wider conflict have been compounded by attacks linked to the Iran-backed Houthi movement and continued uncertainty over shipping through the Red Sea and Strait of Hormuz.

The standoff is also threatening global energy markets. Trump has warned Americans to prepare for continued high fuel prices as a result of the war.