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Iran said Sunday that it had struck an unmanned U.S. vessel attempting to enter the Strait of Hormuz, marking the latest escalation in renewed fighting between the two countries. The United States did not immediately confirm the reported attack. It came a day after the U.S. military said it had struck three Iranian oil tankers in response to a missile attack targeting U.S. Navy warships. The conflict began with U.S. and Israeli attacks on Iran on Feb. 28. Although a ceasefire was announced in June, sporadic clashes have continued as negotiations between the two sides collapsed. Fighting resumed last week after about a month of relative calm, with attacks again focusing on the Strait of Hormuz and Iranian communities along the strategic waterway. At least five people were killed earlier in the week during U.S. strikes in southern Iran. The Trump administration appears to be pursuing both military and economic pressure, responding to attacks in the strait while targeting foreign financial institutions accused of helping Iran move money. Despite years of sanctions and the current U.S. blockade, Iran has continued finding ways to export oil, relying partly on a so-called shadow fleet to transport crude to buyers and ease growing economic pressure. Meanwhile, efforts to resolve disputes over Iran's nuclear programme have stalled after negotiations broke down shortly after the two sides signed a memorandum of understanding in mid-June. Diplomats say the United States, Britain, France and Germany are seeking to refer Iran to the U.N. Security Council over Tehran's alleged failure to meet its nuclear nonproliferation obligations. Iran, however, is increasingly using its position around the Strait of Hormuz as leverage. The waterway is a vital route for global oil and natural gas shipments and had been regarded as an international passage before the war began.

  A fuel tanker exploded in western Iran, killing 11 people and injuring seven others, state media said. IRNA reported late Saturday that the tanker hit other cars before bursting into flames near a traffic police station close to the Kurdish city of Sanandaj, some 400 kilometers (248 miles) west of the capital, Tehran. The report cited a faulty brake system. The injured were transferred to hospitals. In 2018, a similar road accident between a fuel tanker and an intercity passenger bus near Sanandaj killed 15 people and injured four. Road and traffic accidents annually leave more than 17,000 dead in Iran. Experts blame the high fatality rate on unsafe vehicles, disregard for traffic rules, and inadequate emergency services.

US forces struck three Iranian oil tankers after Iranian forces allegedly targeted American Navy vessels with ballistic missiles, marking a fresh escalation in the months-long conflict, the US military said Saturday. The US military said an aircraft carrier and a destroyer came under multiple “unprovoked Iranian attacks” while operating in the region, but no American personnel were injured. According to the US statement, two Iranian oil tankers were permanently disabled and a third, which was carrying no cargo, was destroyed. The military said the vessels were part of a shadow shipping network that helps finance Iran's Islamic Revolutionary Guard Corps and its regional allies. US Central Command chief Adm. Brad Cooper warned that Washington would defend its forces and, if necessary, destroy Iran's “limited and exposed oil fleet.” Iran's state broadcaster later reported that Iranian forces had targeted three oil tankers and three US vessels in retaliation for the American strikes. The report could not immediately be independently verified. An Iranian military command spokesperson warned that attacks on US warships would become more severe if Washington continued interfering with Iranian shipping. The US said one tanker was hit near Kharg Island, a key Iranian oil-export terminal, another near Jask east of the Strait of Hormuz, and the third in the Gulf of Oman. The crew of the empty tanker was ordered to abandon the vessel. Iran's Foreign Ministry condemned the attacks as a war crime and warned that Washington and its allies would bear responsibility for the consequences of continued US aggression, including what Tehran described as economic warfare. The latest strikes came nearly a week after the United States and Iran resumed hostilities following a month-long lull. Fighting has again centered on the Strait of Hormuz, a crucial route for global oil and gas shipments. The conflict began on Feb. 28 with US and Israeli strikes on Iran. Months of intermittent fighting have inflicted military and economic damage on both sides, while diplomatic efforts to end the conflict have collapsed. The latest escalation also follows renewed attacks in southern Iran, where a US strike earlier this week killed at least five people. One attack hit a wedding gathering, according to local accounts. The Trump administration has pursued a combination of military action and economic pressure against Tehran. US Vice President JD Vance said Thursday that there was no prospect of renewed negotiations while Iran continued attacking ships, although he noted that major military operations had ended in July. Iran, meanwhile, has continued exporting oil despite US sanctions and a blockade, relying partly on a shadow fleet of vessels to transport crude to international buyers. The country's nuclear programme remains a major source of tension. Negotiations intended to address the issue collapsed after the two countries signed a memorandum of understanding in June. The United States, Britain, France and Germany are now seeking to refer Iran to the UN Security Council over alleged failures to meet its nuclear nonproliferation obligations. With diplomacy stalled, Tehran has increasingly used control over the Strait of Hormuz as leverage. US forces have been helping commercial vessels navigate the waterway, although shipping traffic remains significantly below normal levels.

A new US ballistic missile may have caused widespread deaths and damage in the Iranian city of Lamerd during its first reported combat use, raising concerns about deploying the weapon near populated areas, according to an analysis by conflict monitor Airwars and weapons experts. Three missiles struck Lamerd on Feb. 28, killing at least 21 civilians, including seven children, Iranian officials said. Airwars found civilians were killed up to 50 meters from the explosion sites, while damage extended more than three times farther. The analysis suggests the weapons were US-made Precision Strike Missiles (PrSM), which are designed to explode in midair and release tens of thousands of high-speed tungsten pellets. Airwars mapped the strike sites using satellite images, videos, photographs, social media posts and other public material. The Associated Press independently reviewed the evidence. Six weapons experts, including two former military officials, said the damage was consistent with a PrSM attack and that such missiles should not be used near civilians. The US military has confirmed using PrSMs in Iran but denies striking Lamerd. It suggested footage showed an Iranian Hoveyzeh cruise missile. Experts said the missile visible in the footage did not match that model. Israel also denied striking as far south as Lamerd. The intended target remains unclear. An Iranian Revolutionary Guard compound is nearby, but satellite images showed no damage there. The PrSM can strike targets more than 499 kilometers away and is replacing the Army Tactical Missile System. Unlike its predecessor, it releases thousands of tungsten pellets in all directions, making it highly lethal. Since the Lamerd strikes, the Pentagon has awarded Lockheed Martin a contract worth more than $4 billion to increase production. Britain and Australia are also purchasing the missiles. Experts said the weapon has useful military capabilities but should be reserved for appropriate targets away from civilian areas.

Six months into a devastating war, Iran’s leadership has consolidated around a group of senior military commanders and clerics with deep roots in the country’s ruling system, signaling preparations for a prolonged standoff with the United States while moving aggressively to prevent unrest at home. The development is a sharp departure from US President Donald Trump’s early expectation that the Islamic Republic could be toppled, followed by his later assertion that regime change had brought more moderate figures into Iran’s leadership. Iran’s new ruling circle appears deeply skeptical of reaching an agreement with Trump after being attacked twice while negotiations were underway. Officials may also be preparing for renewed US strikes after Washington replenishes its stocks of missile interceptors. At the same time, Iran has warned it could intensify the conflict as a US blockade and planned sanctions place additional pressure on an economy already struggling. “If Trump wants to act, we will respond on a seismic scale,” Mohsen Rezaei, Iran’s newly appointed secretary of the Supreme National Security Council, said last weekend. In a post on X, he warned that continued economic warfare could result in Iran stopping all oil exports from the Persian Gulf. Iran moves to prevent another wave of unrest Rezaei was among a series of appointments announced by Supreme Leader Ayatollah Mojtaba Khamenei to establish the country’s new senior leadership and military command structure. His father, Ayatollah Ali Khamenei, and many senior officials were killed in the US-Israeli bombing campaign that began Feb. 28. The appointment of Hossein Taeb as head of the Basij, the Revolutionary Guard’s volunteer force used to maintain order on the streets, was particularly significant. The Basij played a major role in suppressing nationwide protests in January, when thousands were killed. Taeb, a hard-line cleric and former intelligence chief, was also involved in an earlier major crackdown during protests in 2009. His return to a prominent security position suggests Iran’s leadership is determined to prevent fresh demonstrations as economic hardship and public dissatisfaction increase. The 56-year-old supreme leader has not appeared publicly or in recorded video or audio since Israeli attacks killed his father, who had led Iran for nearly four decades. Mojtaba Khamenei is also believed to have been injured. His absence could be linked either to extensive security precautions because he remains a potential Israeli target or to the severity of his injuries. Khamenei relies on longtime hard-line alliesThrough appointments announced Aug. 11 and 12, Khamenei brought several longtime allies into key positions, including Rezaei and Taeb. The appointments appear to strengthen a group of veteran commanders who have worked together for decades, said Sascha Bruchmann, an analyst with the International Institute for Strategic Studies’ Middle East office in Bahrain. Rezaei, 71, commanded Iran’s Revolutionary Guard during much of its early development, including the 1980-88 Iran-Iraq war, and remained in the position until 1997. He has repeatedly sought the presidency as a hard-line candidate since 2009. Brig. Gen. Ahmad Vahidi, 68, was formally confirmed as commander of the Revolutionary Guard after serving as acting chief following the death of his predecessor alongside the elder Khamenei. Gen. Ali Ozmaei was confirmed as acting commander of the Guard’s naval forces, while Gen. Ali Abdollahi retained his position as military chief of staff. Bruchmann noted that Rezaei had commanded Vahidi for years, describing the appointments as an effort to reinforce unity within the leadership. “It looks like internal cohesion, with hard-core figures being brought into the inner circle,” he said. Economic pressure fuels calls for restraintHomayoun Falakshahi, Kpler’s leading oil analyst, said the appointments of Rezaei and Vahidi indicated growing influence for officials favoring a tougher approach. However, he said a further escalation was not unavoidable. Iran could struggle to restore deterrence through military action without provoking a response that would leave the country in an even weaker position. A ceasefire agreed in June quickly unraveled as Iran, the US and Israel exchanged strikes. Tehran has demanded the release of billions of dollars in frozen assets under the agreement and has also sought formal control over the Strait of Hormuz. President Masoud Pezeshkian remains among the most prominent officials advocating negotiations. His supporters warn that continuing the conflict could worsen Iran’s already fragile economy. “It would be better to end the war,” Pezeshkian said last week, arguing that Iran had demonstrated its strength and gained international recognition while the United States had become widely disliked. He has also defended the June ceasefire agreement against hard-line critics who say Tehran made excessive concessions. Rezaei, unlike some ultra-hard-liners who reject negotiations outright, has left the door open to a potential agreement if Washington changes course. On Monday, he told Pakistani mediator Gen. Asim Munir that the United States should alter its approach and take concrete steps to fulfill the ceasefire conditions. Tehran-based political analyst Ahmad Zeidabadi said the country’s leadership faces “serious differences” over its future direction. Writing in the pro-Pezeshkian newspaper Hammihan, Zeidabadi said hard-liners oppose restoring normal relations with Washington because their political survival is tied to continued confrontation and hostility. Basij appointment highlights concern over protestsThere have so far been no indications of a fresh protest movement, even as rising economic pressures make basic necessities increasingly difficult for many Iranians to afford. Taeb’s appointment to lead the Basij indicates that the leadership wants to deal with possible unrest before it develops, Bruchmann said. Taeb, 63, previously headed the Basij during the suppression of large demonstrations following hard-line President Mahmoud Ahmadinejad’s disputed reelection in 2009. Dozens of people were killed during the unrest. He later became chief of the Revolutionary Guard’s intelligence organization, holding the post for nearly 13 years before being removed in 2022 amid a reported shake-up following Israeli intelligence successes inside Iran. The Basij operates a nationwide volunteer network with a presence in streets, government institutions and cultural centers. Its role includes promoting loyalty to Iran’s theocratic system and monitoring ideological conformity. In the decree appointing Taeb, Khamenei instructed him to expand the Basij’s involvement in Iranian society, make greater use of technology and promote the force internationally in opposition to what he described as “Zionist-American arrogance.” That wording could indicate an effort to expand the Basij’s connections with Iranian-backed groups abroad. The force increased its presence during the war, while hard-line supporters organized nightly rallies in Tehran and other cities to demonstrate loyalty to the government and discourage dissent. It remains unclear how Taeb intends to expand the Basij’s role. But in a recent speech, he appeared to advocate greater influence over Iranian society. He said US economic pressure was designed to divide the country and argued that stronger community ties centered around mosques could help preserve national unity. “If the mosque becomes the center of the neighborhood, the nation will protect its unity,” he said, describing that unity as a stronger deterrent than any missile.

Asian stock markets were mixed Tuesday, while oil prices remained largely steady as investors watched for major economic developments later this week. Regional markets moved within a narrow range, while US stock futures were little changed. Oil prices were also broadly stable after US Treasury Secretary Scott Bessent announced new sanctions against Iran and warned that countries continuing to do business with Tehran could face penalties. Japan's Nikkei 225 rose 0.4% to 65,811.19, while South Korea's Kospi fell 0.4% to 6,675.88. Hong Kong's Hang Seng dropped 0.3% to 25,453.19 and the Shanghai Composite edged down 0.1% to 3,878.38. Australia's S&P/ASX 200 gained 0.6% to 9,158.70. Taiwan's Taiex slipped less than 0.1%, while India's Sensex declined 0.3%. Wall Street mixed US stocks ended mixed Monday as some pressure in the bond market eased. The S&P 500 fell 0.3%, moving further away from the record high it reached earlier this month. The Dow Jones Industrial Average gained 0.3%, while the Nasdaq composite lost 0.8%. Technology stocks led the decline as investors remained concerned that the sharp rise in AI-related shares may have pushed valuations too high. There are also concerns that demand for AI chips could weaken if the technology fails to generate enough profits. Nvidia, one of the biggest winners of the AI boom, will release its quarterly earnings report Wednesday. The results could influence the next major move in AI-related stocks. Nvidia shares fell 2.9% Monday, making the chipmaker the biggest drag on the S&P 500. Micron Technology dropped 5.8% and Broadcom declined 2.6%. Bond market in focus The yield on the 10-year US Treasury note fell to 4.71% from 4.74% late Friday. The decline came after the US Treasury Department announced plans to increase the size of its Treasury buybacks, a move that helped ease some pressure on longer-term borrowing costs. However, analysts said the buybacks are relatively small and are unlikely to solve broader concerns over high US government debt and elevated oil prices. Higher Treasury yields can increase borrowing costs across the economy, including mortgage rates, putting additional pressure on the housing market. “The latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds gave the market something to chew on Monday,” said Stephen Innes of SPI Asset Management. “But there is a difference between forcing the bond market to blink for an afternoon and solving the underlying problem,” he said. Fed chief's speech awaited Federal Reserve Chairman Kevin Warsh is scheduled to speak Friday at the annual economic symposium in Jackson Hole, Wyoming. Investors will closely watch his comments for clues about inflation and the Federal Reserve's approach to monetary policy. Oil prices remain a major concern for markets because higher energy costs can push inflation higher. Brent crude, the international benchmark, has remained above the $72-a-barrel level recorded before the war with Iran began in late February. Early Tuesday, Brent crude was almost unchanged at $90.51 a barrel, while US benchmark crude rose less than 0.1% to $85.10 a barrel. Brent prices moved between $72 and $102 a barrel last month as hopes of a US-Iran deal rose and fell. Such an agreement could allow oil tankers to move freely out of the Persian Gulf. The latest US sanctions announced Monday also pushed Iran's currency, the rial, to a record low against the US dollar.

The United Arab Emirates suspended all trade with Iran on Wednesday after accusing Tehran of launching renewed missile attacks, adding to the economic pressure on Iran as it faces US sanctions and a blockade. The UAE issued nationwide warnings on Tuesday night asking residents to take shelter after two ballistic missiles were fired toward the country. It was the first such warning in several weeks. The UAE had faced frequent Iranian missile attacks earlier in the conflict, causing trade between the two countries to largely stop. Some maritime trade resumed in late June as fighting eased, according to Iran's state-run IRNA news agency, though the current level of trade was unclear. UAE accuses Iran of missile attacks The UAE Foreign Ministry said two ballistic missiles were fired toward the country on Tuesday and later fell into the Persian Gulf. The ministry said it remained committed to dialogue and regional cooperation but had decided to suspend economic ties with Iran. "All trade, commercial exchanges and financial transactions with Iran have been halted until further notice," it said, citing growing regional tensions. The UAE Defense Ministry said its assessment showed that the missiles were aimed at maritime traffic. It was not immediately clear whether Emirati vessels or UAE territorial waters were directly targeted. Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Tehran had launched missiles toward the UAE. Attacks on ships increase tensions Iran has repeatedly targeted vessels using the Strait of Hormuz as part of its efforts to control the key waterway. Four tankers owned by Abu Dhabi's state oil company ADNOC have been attacked over the past two weeks. The attacks caused no injuries but drew strong condemnation from the UAE and other Gulf countries, including Kuwait and Bahrain. Nearly 20 ADNOC vessels have been attacked by Iranian missiles and drones in the Strait of Hormuz since the conflict began, killing one person and injuring about 20 others. The strait is a major strategic point for Iran because about one-fifth of the world's traded oil and natural gas passed through it before the war. The United States and Israel launched the conflict on Feb 28, with their stated objectives including weakening Tehran's government and ending its nuclear programme. However, the fighting has increasingly focused on control of the Strait of Hormuz. Iran has fired hundreds of ballistic missiles and thousands of drones during the conflict. Tehran says many of the attacks targeted US assets, but some struck buildings and key infrastructure in Dubai and Abu Dhabi, including Dubai's airport, ports and energy facilities. Iran has accused the UAE and other US allies in the Gulf of helping American military operations against Iran. Iranian Chief of Staff Gen Ali Abdollahi issued a fresh warning Wednesday to countries along the southern coast of the Persian Gulf. He said any assistance given to the US military would amount to taking part in American military operations, according to Iran's semiofficial Fars news agency. Trade suspension could increase pressure on Iran The UAE was one of Iran's largest trading partners before the war. According to the World Trade Organization's latest 2024 figures, the UAE accounted for more than 30% of Iran's imports, worth about $21 billion, and received nearly 13% of Iran's exports, valued at around $7 billion. The UAE's decision comes as the United States prepares to impose further economic pressure on Iran. US Treasury Secretary Scott Bessent said last week that the measures would combine economic isolation with the ongoing American blockade of Iranian ports. The latest economic pressure follows heavy US and Israeli airstrikes on Iranian military, industrial and civilian infrastructure. Iran's economy is already under severe strain. The International Monetary Fund expects inflation to reach nearly 70% this year and the economy to shrink by 5.4%. Iran's rial has also fallen to record lows.

Iran said Saturday that Qatar is holding three of its pilots who went missing after their aircraft were shot down in March, a claim Doha rejected, as Israeli airstrikes in southern Lebanon killed at least 11 people amid rising tensions across the Middle East. Iran’s Missing Persons Committee of the Armed Forces General Staff said Qatar’s military captured the three pilots after their jets were downed. Tehran had previously said it had no information about the pilots’ fate. Iran also alleged that Qatar had prevented the pilots from meeting or communicating with their families and Iranian officials. It appealed to the president of the International Committee of the Red Cross for assistance. Qatar denied the allegation. Foreign Ministry spokesperson Majed Al Ansari said the pilots’ aircraft had been shot down and that Qatari search teams had recovered the remains of one of them. He said Iran had been invited in April to inspect the search efforts but did not respond. Iran said a fourth pilot was killed during a mission targeting a military base in Qatar, according to Iranian state media. Meanwhile, an oil tanker operated by Abu Dhabi’s state-owned oil and gas company ADNOC was attacked while passing through the Strait of Hormuz, the UAE’s state-run WAM news agency reported. No one was injured in Friday evening’s incident, which the UAE described as the third attack on an ADNOC-operated vessel in the strategic waterway within a week. The United Arab Emirates called on Iran to halt what it described as unprovoked attacks. The United Kingdom Maritime Trade Operations centre separately reported that a bulk carrier was hit in its hull by an unidentified projectile on Friday. It was not immediately clear whether it was the same vessel. The Strait of Hormuz, through which about one-fifth of the world’s traded oil and natural gas passed before the latest conflict, has remained a major flashpoint since the war began with US and Israeli strikes on Iran on Feb. 28. Meanwhile, Israeli airstrikes in southern Lebanon killed at least 11 people on Saturday, among the deadliest attacks since a fragile truce between Israel and Iran-backed Hezbollah took effect on June 20. Lebanon’s Health Ministry and state news agency said an Israeli strike on a house near Ansar killed seven people, including three children, and wounded two others. Another strike in Deir al-Zahrani killed four people and injured 17. The Israeli military said it killed a Hezbollah battalion commander and several other militants at a command centre in southern Lebanon, saying the strike was carried out in response to Hezbollah activity against Israeli troops. Israeli Prime Minister Benjamin Netanyahu’s office said three Israeli soldiers were seriously wounded and blamed an explosive drone. The Israeli military said the commander’s family was present at the site but was not the intended target, while Israeli authorities accused him of using family members as human shields. The strikes came amid a framework agreement between Lebanon and Israel aimed at paving the way for an Israeli withdrawal from southern Lebanon in return for Hezbollah’s disarmament. Hezbollah has rejected direct negotiations and was not part of the agreement. In Yemen, Iran-backed Houthi rebels attacked the government-controlled Red Sea port of Mokha, killing at least three people, including two marines, Yemeni authorities said. Port director Abdul-Malik al-Sharabi said Friday evening’s attack also forced the suspension of port operations. Yemeni military spokesperson Col. Majed al-Nazili said the Houthis fired six ballistic missiles at the port. The attack was the latest escalation by the Houthis against government-held areas and neighbouring Saudi Arabia, raising concerns that the conflict could push Yemen back into a wider civil war. Analysts say the escalation is part of Iran’s broader effort to increase pressure on the United States and its regional allies.

Iranian President Masoud Pezeshkian on Tuesday said Tehran is ready to expand and deepen cooperation with Pakistan in various fields. He made the remarks during a meeting with visiting Pakistani Interior Minister Mohsin Naqvi, highlighting the “excellent relations and deep bonds” between the two countries, according to a statement on the Iranian president’s official website. Pezeshkian said Iran and Pakistan share strong historical, cultural and people-to-people ties. He also welcomed Pakistani officials’ efforts to strengthen solidarity and relations with Iran. The Iranian president said Tehran is willing to further expand ties with Pakistan in areas of mutual interest and create opportunities for joint cooperation. He added that stronger bilateral ties and closer cooperation would help protect the interests of both countries and contribute to regional peace, stability and security. Naqvi said his visit to Tehran was aimed at following up on agreements reached during a recent visit to Pakistan by Iranian Interior Minister Eskandar Momeni. Describing Pakistan-Iran ties as “strong, age-old and unbreakable,” Naqvi said Islamabad is committed to further expanding relations with Tehran. The Pakistani minister arrived in Tehran earlier Tuesday and was received by his Iranian counterpart. Later, he met Iranian Foreign Minister Seyed Abbas Araghchi and discussed diplomatic and bilateral issues, Iran’s official news agency IRNA reported. In recent months, Pakistan has played a mediating role between Iran and the United States, helping the two sides exchange messages and pursue peace efforts. With Islamabad’s mediation, Tehran and Washington signed a memorandum of understanding in June aimed at ending their conflict.

Iran's leaders believe they can eventually force the United States to accept their control over the Strait of Hormuz, a key global energy route, and see time as working in their favour. Iranian officials are aware of growing pressure on the United States, including limited supplies of some advanced missile interceptors, public opposition to the war and rising fuel and other prices ahead of the November congressional elections. They also believe reopening the strait by force could be costly for the US and potentially require ground troops. Iran's allies, including the Houthis in Yemen, could further expand the conflict and disrupt another major international trade route. From Tehran's perspective, these factors could eventually leave US President Donald Trump with little choice but to make concessions. But the strategy carries significant risks for Iran as well. Trump has highlighted US strikes that have severely weakened Iran's top leadership, navy and air force. At the same time, he has alternated between threatening further escalation and saying negotiations are progressing. Iran's economy has also suffered heavily, partly because of a US blockade. The country has faced mass protests in recent months, raising concerns that further economic pressure could fuel renewed unrest. Possible deal could give Iran major leverageIran says it is close to reaching an agreement with Oman on managing the Strait of Hormuz, which lies between the two countries. However, the proposed arrangement would depend on the US lifting its blockade. That means Trump would ultimately have to approve it even if, as Iran says, Washington is not directly involved in negotiations. It remains unclear whether Iran would be allowed to charge fees under the arrangement. But any deal that formally recognises an Iranian role in managing the strait would represent a major shift from its previous status as an open international waterway. The strait carries about one-fifth of the world's traded oil and gas. Abdolreza Davari, an analyst and former adviser to President Mahmoud Ahmadinejad, said Iran was seeking more than financial benefits from the waterway. "More than revenue from the strait, Iran wants to confirm its management and sovereignty over the strait," he said. Formal Iranian control over even part of the waterway would be seen as a significant victory for Tehran and a setback for Washington, which has yet to achieve some of its changing objectives in the conflict. It could also raise concerns about international freedom of navigation and create a precedent for countries to disrupt major global trade routes. China, a major buyer of Iranian oil, said as recently as May that normal and safe passage through the strait should be restored. Tehran believes it has the advantageIranian officials argue that the country has greater leverage as the conflict continues. Mahdi Mohammadi, an adviser to Iran's chief negotiator, said on social media that Iran was seeking the defeat of its adversary rather than simply an agreement. Iran has repeatedly said the Strait of Hormuz will not return to its previous status as an open waterway and has threatened to continue attacking ships that attempt to pass without its permission. Iran's joint military command has described the issue as an "unbreakable red line." Tehran-based security analyst Mostafa Najafi said Iran now views control of the strait as a major tool for deterrence, maintaining the regional balance of power and changing security arrangements in the Persian Gulf. The dispute also complicates efforts to resolve the long-running issue of Iran's nuclear programme. Analyst Rahman Ghahremanpour said the conflict over the strait had pushed the nuclear issue into the background, which he said could benefit Iran. Control of the waterway could also provide Tehran with additional leverage if nuclear negotiations resume. Economic pressure poses a major riskThe war has caused widespread economic damage, with Iran among the countries suffering the most. US and Israeli strikes have damaged Iran's industrial infrastructure, while the US blockade has sharply reduced its oil exports. Food prices have also surged, putting additional pressure on ordinary people. Trump has repeatedly threatened further strikes on civilian infrastructure, including water and electricity facilities. A currency crisis in December triggered some of the largest anti-government protests in the Islamic Republic's history. Authorities responded with a crackdown in which thousands were reportedly killed and tens of thousands detained. Some Iranian officials and supporters of moderate President Masoud Pezeshkian fear the government could face renewed unrest if the economic situation deteriorates further. Former Foreign Minister Mohammad Javad Zarif, who helped negotiate the 2015 nuclear agreement, recently said the country's wartime gains had created an opportunity for diplomacy. However, he warned that delaying an agreement could make economic recovery difficult and increase the risk of domestic unrest or renewed conflict, particularly after the US elections. War has not gone as expectedThe conflict has already produced several unexpected developments. After US and Israeli airstrikes on Feb 28 killed Iran's supreme leader and other senior officials, Trump suggested the war could end within weeks. Instead, the conflict has strengthened Iran's leadership and rallied its supporters, analysts say. Ghahremanpour said Tehran was using the Strait of Hormuz to demonstrate that Iran had not been defeated and to strengthen the government's position at home. But he also warned that Iran's ability to withstand the pressure has limits. "Iran cannot continue with this strategy forever, and at a certain point, in reality, it has to reach a deal with America," he said. Davari, however, said Iran was likely to continue resisting pressure for now, despite its severe economic difficulties.