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Stalled war, new deadline
Iranian President Masoud Pezeshkian defended a memorandum of understanding with the United States as the best way out of a stalled war, saying “There is not a single provision in this agreement that amounts to capitulation.”
““There is not a single provision in this agreement that amounts to capitulation,” Pezeshkian said”
The memorandum of understanding that US President Donald Trump signed in June set a 60-day deadline for ending the war with Iran and reaching an accord on its nuclear program, and that period ended last week with “no signs of compromise.”
Pezeshkian linked the agreement to Iran’s economic prospects, saying the country could not attract investment in this stalled phase, while Iran’s economy is suffering under sanctions and a naval blockade.
The dispute also centers on reopening the Strait of Hormuz, described as vital to global shipping, with the crucial issue still unresolved after the 60-day window expired.
Iran’s new head of the Islamic Republic’s top security body, Mohsen Rezaei, warned Tehran’s neighbors against joining the new US effort to hurt Iran’s economy, saying “we will retaliate in a seismic manner.”
Retaliation and mediation
Mohsen Rezaei told the state broadcaster that Iran would target oil-shipping routes out of the Persian Gulf—alternatives to the Strait of Hormuz—if neighbors join what he described as the economic war against Iran.
The Associated Press reported that there were no confirmed attacks in the Strait of Hormuz over the past 48 hours, with a multinational coalition overseen by the U.S. Navy saying shipping traffic remained at reduced levels.
Pakistan’s Field Marshal Asim Munir was reported to be leading an official delegation traveling to Tehran on Monday, with Iranian state television citing Iran’s Foreign Ministry spokesperson Esmail Baghaei.
Two regional officials told the Associated Press that the visit was part of Islamabad’s efforts to de-escalate tensions between the United States and Iran and urge both countries to return to the negotiating table.
Treasury Secretary Scott Bessent was expected to announce new measures against Iran on Monday after the U.S. vowed to impose an “unprecedented” level of economic warfare and isolation.
What’s at stake next
Pezeshkian said the memorandum is the best path out of what he described as a situation of “neither war nor peace,” and the sources tie the stalled talks to the nuclear program and to the Strait of Hormuz.
“Iran’s economy is suffering under sanctions and a naval blockade”
The Associated Press said Iran’s economy is suffering under sanctions and a U.S. naval blockade, while the Taipei Times reported that the new leader of the Iranian Supreme National Security Council warned neighbors against joining the effort to hurt Iran’s economy.
Rezaei’s threat of retaliation was framed as a response to neighbors supporting U.S. threats to further sanction Tehran, and he said Iran would consider such neighbors as enemies.
The sources also describe the immediate diplomatic pressure point as Pakistan’s planned travel to Tehran, with mediation efforts aimed at reviving talks after the 60-day window ended last week.
With Scott Bessent expected to announce new economic measures against Iran, the next steps described in the reporting are tied to whether reopening the Strait of Hormuz and the nuclear accord can move from stalemate toward compromise.