US-Iran Nuclear Talks Collapse as Economic Conflict Escalates Over Strait of Hormuz

The 60-day deadline set in June for a US-Iran agreement aimed at ending hostilities and advancing nuclear negotiations is expiring without a deal, signaling a shift in the conflict's nature. The initial goal was to resolve the war, address Iran's nuclear program, and restore free navigation through the Strait of Hormuz. However, talks have stalled due to disagreements over who should make the first move: Iran demands the release of frozen funds, while the US insists Iran first allow free passage through the strait.

Since late July, public reports of US strikes inside Iran have ceased, but tensions persist with Iran firing at ships near the strait and the US responding with attacks in southern Iran. Recently, a vessel belonging to the UAE's state oil company was attacked, though the responsible party remains unknown. The US has reinstated sanctions on Iranian oil and resumed a naval blockade, aiming to weaken Iran economically and pressure it into concessions. Experts warn this prolonged economic pressure may backfire, potentially escalating the conflict rather than fostering compromise.

Iranian Foreign Minister Abbas Araghchi stated Iran has not decided whether to resume talks and dismissed the 60-day framework as irrelevant, noting the ceasefire envisioned in the agreement never truly existed. Meanwhile, former US President Donald Trump proposed declaring the Strait of Hormuz US territory, a move requiring significant military presence and lacking official White House confirmation. Iran's Deputy Foreign Minister Karim Gharibabadi rejected this, affirming the strait's Iranian sovereignty and warning the US has suffered strategic defeats so far.