Iran gives U.S. weeks to accept demands including $300B reparations and control of Hormuz or face offensive escalation, a senior official told Reuters.
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Iran has set a deadline of a few weeks for the United States to meet a sweeping set of demands or face a shift to a “fully offensive” posture, a senior Iranian official told Reuters on Monday.
The official said Iran was abandoning its defensive stance and would escalate tensions in the Strait of Hormuz and across the region if the U.S. did not implement a disputed memorandum of understanding. “All Iranian entities” would be prepared to escalate, the official said, adding that Iran would not wait indefinitely while the U.S. maintained its naval blockade.
The demands, according to the official, include $300 billion in war reparations, the release of all frozen Iranian assets, a permanent end to the blockade, a halt to hostilities on all fronts, the removal of all sanctions, and permanent Iranian control of the Strait of Hormuz.
Brig. Gen. Yadollah Javani, political deputy of the Islamic Revolutionary Guard Corps, told Iran’s Fars News agency that the armed forces would adopt a “transformative” approach. “From now on, every action we take, although it has a defensive nature, must take on an offensive form,” Javani said.
The Wall Street Journal reported that after President Trump signed the memorandum of understanding with Iran in June, Iranian leaders spent two months preparing for a bigger fight, viewing the pact as a U.S. and Israeli tactic to relieve economic pressure before launching a larger attack. Iranian war plans reportedly include preemptive missile and drone strikes, cutting undersea Internet cables, and a potential ground incursion into Kuwait via southern Iraq.
Trump responded by telling reporters Monday he liked the idea of declaring the Strait of Hormuz U.S. territory. “We control it with the blockade. We have a blockade, we control it with the blockade. And I like the idea of declaring it a territory. We could do that,” Trump said.
He also threatened military action against Oman, an ally, if its negotiations with Iran over the strait interfered with U.S. peace efforts. “If Oman gets in the way, we’ll bomb the s– out of them,” Trump told Fox News in an interview Aug. 17, according to chief foreign correspondent Trey Yingst.
Jared Kushner, the president’s son-in-law and adviser, told Fox News on Monday that “right now they are not showing any interest in doing something that makes sense for us.” He said Iran needed to offer a fair deal without “trying to hide certain cards and get certain concessions.”
The Strait of Hormuz is the chokepoint for about a fifth of global oil consumption. A sustained closure could push crude prices sharply higher, raise tanker rates, and boost defense spending expectations for Gulf states and U.S. contractors. Shipping and insurance costs on routes through the region have already risen since the blockade began, according to data from Lloyd’s of London and the Baltic Exchange.
A U.S. ground commitment in Kuwait, if Iranian forces crossed the border, would represent a dramatic escalation and likely draw in coalition partners. Treasury yields and the dollar would likely rally on safe-haven flows, while equities with Gulf exposure would come under pressure.
Trump said Iran “can be a nuisance,” but warned the country is “in big trouble.” The precise timetable for the Iranian ultimatum will be conveyed to Washington and regional governments through mediators, the senior Iranian official said.
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