Iran's president backs US terms as Trump escalates sanctions and threatens bombing

Iran Peace Deal Analysis for August 25, 2026

Iran's president publicly endorsed a US memorandum as the best path to end the war. This was a rare positive signal from Tehran. It came the same week Trump announced fresh sanctions and threatened "economic D-Day" against Iran. Secretary of State Rubio told Al Jazeera in May that some good signs existed for a deal. But the last two weeks have seen the 60-day ceasefire expire. Both sides rejected extension. Trump threatened to bomb Oman if it interferes with US operations.

The war is now six months old. Nearly 20 people have died in 68 incidents near the Strait of Hormuz alone. Half of global oil flows through war zones. Tankers have been struck and disabled. Iran is threatening to choke shipping in the strait. The Houthis continue attacking Saudi vessels in the Red Sea. Trump has claimed US territorial control over Hormuz and threatened military strikes on Oman, a neutral mediator.

Iran's presidential endorsement could signal genuine movement toward a deal. It could also be a negotiating move to appear reasonable while military operations continue. Washington's immediate response was to escalate sanctions and threats. Neither side has budged on core demands. Iran frames the ceasefire as imposed on the US. US officials treat it as a failed interim step. The Hormuz strait remains where both militaries are active and commercial shipping faces acute risk.

Continued military incidents in the gulf are likely over the next 30 days unless one side yields on Hormuz control, sanctions relief, or US regional presence. Iran's stated support for a deal carries little weight if Trump's pressure campaign keeps escalating.