US Ambassador to NATO Matt Whitaker stated on Sunday that the Trump administration remains open to securing a deal with Iran to end more than four and a half months of hostilities. Whitaker indicated that a potential agreement is contingent upon Iran ceasing aggressive behavior and engaging in negotiations. The remarks come amid escalating tensions between Washington and Tehran, which have disrupted negotiations and raised concerns over global energy security.

Whitaker described President Trump as a "peacemaker" but emphasized that any interim peace agreement is "performance-based." He warned that if Iran attacks shipping or acts belligerently, the US will respond with overwhelming force. US Ambassador to the United Nations Mike Waltz echoed these sentiments, stating that "all options are on the table" and accusing Iran of failing to uphold a preliminary agreement reached in June.

The recent conflict has led to fresh concerns regarding maritime security, particularly in the Strait of Hormuz. The waterway is a critical energy chokepoint through which approximately 20 million barrels of oil pass daily. Conflicting statements have emerged regarding its status, with the Iranian Revolutionary Guard Corps declaring the strait closed to all vessels, while US Central Command asserted that traffic is flowing and the waterway remains open to lawful transit.

President Trump confirmed in an interview that the strait is open and acknowledged that US forces conducted strikes against Iranian targets overnight. The uncertainty surrounding the safe passage of vessels has impacted oil markets. West Texas Intermediate (WTI) rose to $73, with 24-hour volume and open interest reaching $113 million and $222 million respectively. Brent crude increased to $78, with a trading volume of $63 million.

Oil Market Data

ING commodity strategist Warren Patterson noted that vessels transiting the Strait of Hormuz remain well below pre-war levels. He added that recent developments demonstrate that the safe passage of vessels continues to be a significant issue for the market. Prior to the conflict, about a fifth of all globally traded oil and natural gas passed through the strait.

Iran's Supreme Leader Ayatollah Mojtaba Khamenei declared Saturday that avenging his slain father and predecessor was "the demand of the nation," escalating tensions with Washington. The statement, made during funeral ceremonies for Ayatollah Ali Khamenei, emphasized that retaliation "must certainly" be carried out. The remarks signal a hardened stance following months of political and military strain between Tehran and the US.

The funeral, held months after Ali Khamenei was killed in US–Israeli airstrikes on February 28, drew thousands of mourners. Three sons of the late leader made a rare public appearance, but Mojtaba Khamenei remained absent. His absence is attributed to facial disfigurement and other injuries sustained in the strike, as well as ongoing threats to his life from Israel.

Pledge to Avenge

"We pledge to avenge the blood of the martyred leader and all the martyrs of these two wars from the criminal and disgraced killers," Mojtaba Khamenei said. His comments align with earlier statements from senior Iranian commanders, indicating a shift from symbolic mourning to operational intent within Iran's security establishment. Analysts view the message as a precursor to potential military action.

The renewed clashes have impacted global markets, with crude oil prices settling around $71 per barrel, recording a weekly gain of about 4%. The escalation undermines hopes for a tentative accord reached earlier this year between the two nations.

Trump Issues Warning

President Donald Trump responded with a stern warning on Truth Social late Friday, stating that Iran would face overwhelming military force if it attempted or carried out his assassination. "1,000 missiles are Locked and Loaded and aimed at the Islamic Republic of Iran, with thousands more to immediately follow," Trump wrote. He added that orders have been given and the US military is "ready, willing and able."

Washington Expands Financial Pressure

The US also intensified financial pressure on Tehran by sanctioning an Iranian financial facilitator through the Department of Treasury’s Office of Foreign Assets Control (OFAC). The Treasury accused the facilitator of institutionalizing large-scale embezzlement and targeted key Iranian exchange houses moving billions of dollars annually for sanctioned banks. Treasury Secretary Scott Bessent stated, "Treasury will continue using every tool at its disposal to isolate him and other regime elites from the global financial system."