Iran Uses Trump Deal Period to Prepare for Wider Military Conflict, Intelligence Reveals

Since signing a memorandum of understanding with U.S. President Donald Trump in mid-June, Iran's hardline leadership has not pursued de-escalation but instead used the two-month period to prepare for broader military confrontation. According to intelligence and Arab and Iranian sources cited by The Wall Street Journal, Tehran doubted the sincerity of U.S. and Israeli intentions, viewing the agreement as a tactic to buy time and apply economic pressure ahead of a possible future attack.

During this time, Iran's Islamic Revolutionary Guard Corps (IRGC) tightened control over the regular army, appointed hardline commanders to key positions, accelerated missile production, and expanded operations in conflict zones such as the Red Sea and Persian Gulf. While Iranian diplomats engaged in apparent negotiations, security forces directed militias in Yemen and Iraq to attack ships, energy facilities, and Saudi Arabia, and even launched missiles toward Jordan.

Tehran also appointed senior figures like Mohsen Rezaei and IRGC commander Ahmad Vahidi, who was explicitly ordered to conduct "powerful offensive actions against the enemy." The regime reestablished internal intelligence networks led by Hossein Taeb, former head of IRGC intelligence. The IRGC reportedly developed attack plans including sabotage of undersea communication cables and possible ground raids.

Despite the deal promising sanctions relief and oil sales in exchange for opening the Strait of Hormuz, IRGC opposition and resumed attacks on vessels effectively blocked progress. Washington retreated from easing economic pressure, while Tehran warned the talks were merely a lull before a storm. The Wall Street Journal noted that while Iran's political leadership and President Masoud Pezeshkian warned of economic collapse and urged lifting sanctions, the regime's hardline military faction believed the agreements were a ploy to buy time for another U.S.-Israeli strike and deliberately undermined regional mediation efforts like the Oman initiative.

Arab intelligence intercepted communications between Iran and allied militias in Yemen and Iraq preparing for expanded warfare and raising the stakes against the U.S. Iranian leaders frequently discuss offensive operations on enemy territory, aiming to prevent a repeat of the losses Iran suffered in last year's 12-day war and ongoing conflict since February 2026. Analyst Mohammad Hassan Sangtarash, close to the Iranian government, told The Wall Street Journal that Iran views the current escalation as limited and gradual, intended to weaken enemy capabilities ahead of a larger confrontation.

These preparations highlight a deep divide between Washington's and Tehran's perceptions of the conflict stage, fueling Iran's tough negotiating stance and refusal to finalize deals, which frustrated Trump, who labeled Iranian leaders as "crazy" and accused them of deceit.