Mediators have proposed a 10-day pause in U.S. strikes to explore options for reviving an Iran-U.S. interim agreement, according to a senior Iranian official. This diplomatic overture comes as President Trump stated that Iran is being hit so hard it wants to make a deal but is not yet ready, adding that he expects Iran will be ready very soon. Trump had earlier confirmed in an interview with Fox Business that his administration received a call indicating Iran's desire to meet, noting that the country's military capabilities had been significantly weakened. The White House confirmed that Iran continues to engage the United States in talks and seeks a deal, even as U.S. forces have launched successive waves of strikes against Iranian military targets. Financial markets reacted to the heightened geopolitical tension through rising oil prices and sharp declines in Asian equities.

Diplomatic Developments

AFP reported that diplomatic exchanges with the United States are ongoing via mediators. A senior Iranian official indicated that those mediators proposed a 10-day halt in strikes as a window to explore the revival of an interim agreement between the two countries. Despite the diplomatic signals, Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf maintained a defiant stance, stating Iran had never sought war but remained prepared for battle while supporting diplomacy.

Military Escalation and Targets

The U.S. Central Command (CENTCOM) announced it had launched a second round of strikes against Iranian military targets within 12 hours. The operation targeted military assets used to threaten commercial vessels transiting the Strait of Hormuz, specifically coastal defense systems and cruise missile infrastructure on Greater Tunb Island. Trump confirmed that strikes would persist until he deemed it "enough" and noted that a ground campaign had not been ruled out. CENTCOM also confirmed that a naval blockade of the Strait of Hormuz remains in effect.

Market Reaction and Oil Prices

Financial markets reflected the heightened geopolitical tension, with oil prices climbing on supply disruption concerns and Asian markets declining sharply. The escalation follows Trump's warning that military action would intensify if Tehran refused to engage in talks, with Brent crude rising above $85 per barrel. U.S. stock futures were mixed amid the uncertainty. The table below captures the latest market movements across key indicators:

Sanctions and Policy Shifts

The U.S. Treasury announced new sanctions targeting an international network accused of procuring weapons for Iran's Islamic Revolutionary Guard Corps following attacks on commercial vessels. On the question of transit fees, Trump confirmed he has abandoned an earlier proposal for a 20% fee on vessels traveling through the Strait of Hormuz. Instead, he suggested that Gulf state allies could make "record" investments in the U.S. as an alternative arrangement, clarifying that any payments discussed were intended as reimbursement for U.S. efforts to secure the strategic shipping route rather than a transit fee.

Iran's top joint military command has escalated its warnings against the United States, declaring via Iranian state media that if the U.S. acts on its threats, Iran will halt all Gulf oil flow and target oil, gas, electricity, and economic infrastructure across the region. The statement marks a significant intensification of Iran's stated response to U.S. military threats, expanding beyond earlier warnings to include sweeping economic and energy targets.

Escalated Warnings from Iran's Military Command

According to Iranian state television, the top joint military command stated that Trump's repeated threats will only lead to an expansion of war in the region and beyond. The latest declaration broadens Iran's previously stated position, which had warned that a U.S. attack on Iran's nuclear sites would constitute an expansion of war and that all U.S. and allied interests in the region would be targeted.

Key Details of the Statement

The warnings, as broadcast by Iranian state media, reflect the official position of Iran's top joint military command. The statement did not provide further operational details or timelines.