Donald Trump has delivered a blunt ultimatum to Iran as fragile ceasefire arrangements hold amid mourning for assassinated Supreme Leader Ayatollah Ali Khamenei. His latest comments follow months of intermittent conflict and intense diplomatic manoeuvring between Washington and Tehran.
US President Mr Trump declared: “We’re either going to have a deal or we’re going to have a war,” in comments which captured the high-stakes brinkmanship defining the standoff.
The remarks come just a day after vast crowds gathered in Tehran for the second day of funeral ceremonies for Khamenei and family members killed in late February’s US-Israeli strikes.
Mourners chanted calls for revenge as Iran’s new leadership under Mojtaba Khamenei navigates reconstruction, resumed limited trade, and negotiations. Parliament Speaker Mohammad Bagher Ghalibaf, a key negotiator, has spoken of diplomacy backed by “fighting spirit” and battlefield gains, while urging regional Muslim unity.
A two-week ceasefire agreed in April, later extended indefinitely, has prevented all-out resumption of hostilities but remains precarious.
Indirect talks – including face-to-face rounds hosted by Pakistan – produced a preliminary memorandum of understanding covering the Strait of Hormuz, sanctions relief elements, and nuclear constraints.
Some flights have resumed at Bandar Abbas, and maritime trade with Qatar has restarted, yet progress toward a final deal is slow.
Mr Trump, who authorised initial “major combat operations,” has oscillated between optimism and threats.
He has warned of striking bridges in an hour and power plants in an afternoon, stressing US military dominance over a cash-strapped Iran while insisting he seeks no regime change and aims to spare civilians.
The president has previously floated seizing oil infrastructure like Kharg Island before pulling back in favour of talks.
Tehran’s response mixes defiance and pragmatism.
Officials insist on honouring commitments only if the US does likewise, while vowing to avenge Khamenei.
Ghalibaf told a Hezbollah delegation: “Negotiations must preserve Iran’s support for the resistance front.”
Gulf markets dipped on caution over stalled progress, even as OPEC+ agreed further output increases.
The conflict has already exacted a heavy toll: damaged energy facilities, disrupted global shipping, and heightened regional tensions spilling into Lebanon.
The crisis erupted in February 2026 after unprecedented US-Israeli air campaigns targeted Iranian infrastructure, prompting Tehran to obstruct the vital Strait of Hormuz maritime corridor.
Subsequent retaliatory strikes crippled several regional energy grids before Pakistan successfully brokered the current temporary framework.
Mr Trump’s latest intervention appears designed to accelerate stalled talks, with an informal August window cited for a fuller nuclear accord.
