Iran War News Highlights: Iran says it is ready for US talks, but sets conditions as Strait of Hormuz tensions persist

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Washington is urging allies and China to join President Donald Trump's campaign to isolate Iran economically and force regime change.

Treasury Secretary Scott Bessent said, “It is going to work in Iran and we are going to collapse this regime.”

Bessent described the planned campaign as “the greatest coordinated economic isolation in the history of the world.”

Bessent said countries face a choice: “You are either with us or against us.”

Bessent called on Beijing to “get with the program,” while declining to detail whether Washington would impose penalties on China.

Trump pledged what he called the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY,” describing it as unprecedented “Economic Warfare and Isolation.”

Bessent said maximum economic pressure could mean there is likely to be no “large-scale kinetic restart” of US military operations against Iran “for now.”

Bessent said he will outline the planned economic measures at a press conference on August 24.

The US is imposing fresh sanctions on Lebanon-based Hezbollah, according to a Reuters report.

The Treasury Department is re-designating Hezbollah as a Specially Designated Global Terrorist (SDGT).

Washington says the move is aimed at highlighting Hezbollah's links to the Iranian government.

The US says Hezbollah acted in service of the Iranian regime under the command of the IRGC-Quds Force.

A US official said the re-designation is intended to update the public record and emphasize Hezbollah's role on behalf of Iran.

Hezbollah was first designated under the SDGT authority in 2001 and is also classified by the US as a Foreign Terrorist Organization.

The US has also sanctioned 10 people accused of smuggling cash for Hezbollah.

Washington said Thursday's Hezbollah measures are separate from additional sanctions planned against Iran.

Iran has rejected US President Donald Trump’s claim that Washington has “total control” over the Strait of Hormuz, with Iran’s Consul General in Mumbai, Saeid Reza Mosayeb Motlagh, insisting that the strategic waterway remains under Tehran’s control.

"The Strait of Hormuz is completely under Iran's control. Mr Trump has made a false claim that the strait is under our control and that the United States has destroyed Iran's naval forces and missile forces," Motlagh said.

"Unfortunately, judging from his statements, he seems to believe that this is the case," he added.

"One important point is that there must be no damage to the territory of the Islamic Republic of Iran. At the same time, we believe that no harm should come to the countries on the southern shores of the Persian Gulf and the Gulf of Oman either," he said.

"Iran can reopen the Strait of Hormuz once the United States fulfils its commitments and Iran's conditions are fully accepted," he said.

Yemen’s Iran-backed Houthi rebels claimed two drone attacks in Saudi Arabia’s southern Najran region.

The attacks reportedly targeted Najran Airport and an Aramco facility.

Houthi military spokesman Yahya Saree announced the attacks in a Telegram statement.

Saree said the group used drones in both operations.

The targets are located near the Saudi-Yemeni border.

The Houthis described the Najran Airport site as a “sensitive” Saudi target.

The group also claimed it targeted a facility belonging to state-owned oil giant Saudi Aramco. (AFP)

"Iran has always stated that it is prepared for negotiations and dialogue. Unfortunately, the United States has declared itself ready for talks whenever it has served its interests, using negotiations as a pretext for launching renewed attacks and another war," Iran's Consul General in Mumbai, Saeid Reza Mosayeb Motlagh told ANI.

"Nevertheless, because it has made a commitment to itself to remain committed to dialogue, it is always prepared for negotiations," the Iranian diplomat said, adding that conditions must be fulfilled before Tehran can engage in meaningful talks.

"The United States must end its acts of aggression and destabilising actions in the region, despite the fact that it is increasing its military presence there," Motlagh said.

Iran has indicated that normal shipping through Hormuz could resume once its demands are addressed.

Oil prices hit more than three-week highs on Thursday amid concerns over prolonged disruptions linked to the Iran war.

Brent crude rose $2.19, or 2.39%, to $93.81 a barrel.

US WTI crude gained $2.33 to $88.16 a barrel.

Both Brent and WTI reached their highest levels since July 24 and posted a fifth consecutive session of gains.

The UAE's suspension of financial and economic transactions with Iran has added to concerns over regional tensions.

There is also uncertainty over Iran peace talks and tensions involving Iran, Oman and the UAE.

Vatican voiced “serious concerns” over difficulties implementing the US-brokered Israel-Lebanon deal.

Pope Leo XIV met Lebanese President Joseph Aoun during a 30-minute private audience at the Vatican.

Aoun urged the Pope to support Lebanon’s demand for a full Israeli withdrawal from southern Lebanon.

The June framework calls for Hezbollah’s disarmament, a gradual Israeli withdrawal and deployment of the Lebanese army in the region.

Israel has continued intermittent strikes and demolition operations in southern Lebanon despite a lull in fighting.

Israeli forces are operating in a strip of territory about 10 km inside the Lebanese border.

Aoun also met Vatican officials Cardinal Pietro Parolin and Paul Richard Gallagher.

The Vatican said talks focused on the US-mediated Israel-Lebanon agreement.

Aoun called for diplomatic efforts to ensure Israel ends attacks on civilians, infrastructure and villages.

Pope Leo has repeatedly called for de-escalation and a diplomatic solution to conflicts in the Middle East.

Aoun is expected to meet Italian Prime Minister Giorgia Meloni on Friday.

Italy has hosted the last two rounds of Israel-Lebanon talks.

Italy and France have proposed a multinational coalition to replace the UN peacekeeping force in southern Lebanon after its mandate ends this year.

Qatar’s Foreign Minister and Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has called for traffic through the Strait of Hormuz to return to pre-war levels, saying no party involved in the conflict should “blackmail” the other.

“The consequences of this war were grave, not only on the Gulf region but elsewhere in the world,” Sheikh Mohammed said at a news conference following high-level talks in El Alamein, Egypt.

“We need the situation to go back to what it used to be before,” he said. “We condemn any threats in this regard in any obstacles.

US President Donald Trump warned of economic consequences against any country that provided "any type of lifeline to Iran" as the United States looks to resolve a war it began alongside Israel nearly six months ago.

Thousands have been killed in the war, which quickly drew in Gulf nations and shocked global markets as Iran flexed its ability to curb shipping through the Strait of Hormuz, which carried about a fifth of the world's traded oil before February.

The US and Iran have twice announced ceasefire deals, in April and June, aiming to restore the free flow of shipping through Hormuz on a path towards ending the conflict, but both quickly crumbled, even as Israel has largely withdrawn from the fighting.

— Reuters

Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, has accused the US of seeking help from its allies, saying Washington has been ‘begging’ them for support.

“They claim Iran is on the verge of defeat, hanging by a thread, yet they are begging all their allies to help them!” he posted on X, responding to US President Donald Trump’s threat of ‘economic D-Day’ against countries that help or conduct business with Iran.

Gharibabadi also alleged that the US had failed to achieve its objectives, pointing to figures showing that the country’s public debt had crossed $40 trillion for the first time. “The military war didn’t yield results, so now they’ve named the next failure “economic war”, he added.

War broke out between Iran and the United States on February 28 with US-Israeli attacks which triggered Iranian retaliation across the region.

An April 8 ceasefire put an end to the intense bombardment but sporadic clashes continued in and around the Strait of Hormuz, a vital energy conduit which Iran has blockaded and has since become flashpoint in the conflict.

Reopening the strait has become a US priority but Iran insists the waterway will remain closed until Washington lifts its naval blockade on Iranian ports, removes oil sanctions, and unfreezes Iran's assets abroad.

Trump has long pursued a "maximum pressure" policy of economic sanctions on Iran and reinstated those measures after he took office in January 2025, mirroring his approach during his first term.

Iran has dismissed the sanctions program as a failure, insisting that such measures and threats will not force it to change course.

Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi on Thursday criticised US President Donald Trump's announcement of a new economic campaign against Tehran, saying Washington had turned to economic pressure after military action.

"They say Iran is on the verge of defeat and hanging by a thread, but they are asking all their allies to help them," Gharibabadi said in a post on X.

Gharibabadi said the US approach was based on what he described as repeated miscalculations. "The military war did not produce results. Now they have named their next failure 'economic war,'" he said.

Trump said on Wednesday that he was launching what he called the "most crushing economic operation ever taken against any country" against Iran, threatening economic consequences for countries and entities that provide Tehran with financial or other support.

Iran's Seyed Abbas Araghchi posted on X, “The so-called “Economic D-Day” is a diversion from America's own crisis: unprecedented debt & surging interest costs.”

“Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide.”

Controlled explosions may be heard in southern parts of Iran’s central city of Isfahan between 9 a.m. and 2 p.m. on Thursday, the provincial IRGC office said, as per Iran International. The announcement covered the areas of Soffeh and Baharestan and surrounding districts.

Iranian Foreign Minister Abbas Araghchi on Thursday dismissed US President Donald Trump’s threatened “economic D-Day” against Iran as an attempt to divert attention from US debt and rising interest costs.

“Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide,” he wrote on X.

Trump said on Wednesday that countries allowing their institutions or businesses to provide Iran with any “lifeline” would face severe economic consequences, citing Tehran’s failure to reach a deal with Washington.

Iraqi Airways resumed flights to Iran after a suspension caused by the war and the closure of Iranian and Iraqi airspace, Iran’s Civil Aviation Organization said, according to official media.

The airline began operating nine weekly flights to Rasht on Wednesday after receiving approval from Iranian authorities, with flights to Tehran and Mashhad set to resume next week, the report added.

Iraqi Airways will operate a total of 18 weekly flights from Najaf and Baghdad to Tehran starting next week, while two weekly flights to Mashhad will also be added to its schedule, the organization said.

Shipping traffic through the Strait of Hormuz showed no increase on Wednesday as talks between the US and Iran to end their war remained deadlocked, according to Reuters. Nine commodity vessels transited the waterway, unchanged from the previous day, Kpler data showed.

Iran War News LIVE Updates: Ali Gholhaki, an activist close to Parliament Speaker Mohammad-Bagher Ghalibaf, said on Wednesday the US is using specialised vessels to clear a southern shipping route through the Strait of Hormuz near Oman, which could reduce the strait’s strategic value and Washington’s incentive to make concessions to Iran.

“The Americans were using specialised vessels to remove sharp, obstructive rocks along the southern route of the Strait of Hormuz, near Oman, in order to clear the shipping corridor for vessels to pass through,” he posted on X.

“The US’s “quiet transfer of oil through the southern route of the Strait of Hormuz” would diminish the strait’s strategic value. If this continues, the US will have no reason to lift the “blockade,” waive any sanctions or release any funds,” he added.

Former US ambassador to Israel Dan Shapiro on Wednesday told CNBC that President Donald Trump misjudged the Iran war from the beginning and was no closer to a resolution, describing the conflict as a stalemate.