US President Donald Trump has announced he will not proceed with a military attack on Iran following regional requests, but no breakthrough has been achieved on reopening the strategically vital Strait of Hormuz, where Iranian forces continue to control maritime passage.

President Donald Trump announced on Sunday that he would not launch a threatened military strike against Iran, citing requests from Iran and other regional countries after preliminary deal parameters were discussed. According to Trump, a potential agreement under negotiation would include "immediate, complete, and total" reopening of the Strait of Hormuz and an end to Iran's nuclear programme. However, the announcement has not resolved the underlying dispute over the contested waterway, where numerous vessels remain stranded in its northern corridor under Iranian control.

Iran's acting Defence Minister Majid Ebn-e-Reza dismissed Trump's decision as part of "psychological operations and a war of calculations," emphasising that Iranian forces would treat all threats as genuine. The Iranian military command separately warned that regional US interests could face retaliatory strikes if Washington targets civilian infrastructure. This hardened rhetoric contrasts with diplomatic efforts by regional mediators including Saudi Arabia, Pakistan, Qatar, Oman and Turkey, who have been attempting to facilitate an agreement between the two countries.

The current standoff represents a breakdown of a memorandum of understanding reached in June that partially reopened the Strait in exchange for sanctions relief. Both sides dispute the terms: the US claimed the agreement permitted southern corridor passage, while Iran maintained that its armed forces retained control over transit arrangements. The Iranian Revolutionary Guard Corps has continued intercepting or turning back vessels attempting to use the Omani-adjacent route.

The broader conflict has extended into the Red Sea, where Iranian-aligned Houthis have attacked Saudi energy facilities. Meanwhile, Iran faces mounting domestic challenges including chronic inflation, energy shortages and unpaid government salaries, compounding the economic toll of sanctions and military expenditures. Iran's newly appointed supreme leader Mojtaba Khamenei has made no public appearances since his selection in March, with state media citing security concerns.