The Strait of Hormuz remains a key artery for global energy shipments, but traffic has nearly stopped; few vessels are moving through with their transponders working.
That is the setting for President Donald Trump's August 3, 2026 ultimatum.
In the Oval Office, the president told the press: "I want to give them every last chance before decapitation. You'll find out today or tomorrow. I mean, they're going to go quickly, one way or the other. It's not very complex."
The conflict is in its sixth month. Early in the war, U.S. and Israeli actions eliminated much of Iran's senior leadership.
Trump has repeatedly said he would intensify bombing unless Iran reopened the strait. He has also threatened to target civilian installations and electricity generation facilities, something Tehran has warned it would punish severely.
A spokesman for Iran's Foreign Ministry, Esmail Baghaei, said on Monday: "We are not currently negotiating with the United States."
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Trump disagreed on social media.
"Whether Iran wants to admit it or not, we are, in fact, talking of a solution," he wrote. He also called Iran's leadership "unbelievably duplicitous."
It was unclear what process Trump was referring to or who might be representing either side. He has often cited diplomatic outreach when backing away from military action, only to see the efforts fail.
The U.S. wants Iran to allow vessels unrestricted transit through the Strait of Hormuz without imposing fees. Tehran has made free passage a key condition for any agreement. Iran has given no sign it will accept normal traffic.
Bloomberg reported last week that Omani and Iranian officials were discussing reopening the "middle passage" through the strait. The route is reportedly mined and would have to be cleared before regular use.
Late Monday, a high-ranking Iranian official urged Washington to "take the first step and change its behavior" and return to the terms of a June deal. Mohsen Rezaee, who advises Iran's supreme leader, said on state television that U.S. warships and bases "will be in serious danger" unless Trump ends the blockade of Iranian ports.
Gulf Arab states are U.S. allies but have grown frustrated with the six-month war. They worry that more escalation could push Iran to launch additional drones and missiles toward them, wrecking infrastructure and damaging their economies.
Iran has repeatedly hit Kuwait and Bahrain over the past couple of months during skirmishes with the U.S. Saudi Arabia and its Gulf neighbors the UAE and Qatar came through with less damage, yet their ships have also been struck near Hormuz. Saudi territory has also faced attacks from Iran-backed militias in Iraq and from Yemen's Houthis in the last two weeks.
Over the weekend, Saudi Crown Prince Mohammed bin Salman spoke with Trump by phone. The Saudi state news agency said the crown prince "stressed the need to prioritize dialogue to reduce escalation" and emphasized the importance of seeking calm.
Trump also criticized ExxonMobil Holdings Corp. and Chevron Corp., saying their outsized profits mean they are "making too much money" and should return some of it to the public by lowering retail gasoline prices.
On Saturday, American diplomatic missions throughout the area advised U.S. citizens to get ready for possible flight cancellations and airspace closures.
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