Trump threatens Oman with bombing as 60-day US-Iran peace deal expires

Expiration of the 60-day memorandum

A diplomatic deadline between the United States and Iran passed on 17 August 2026 without an agreement or an extension. The 14-point Islamabad Memorandum of Understanding, signed on 17 June 2026 following mediation by Pakistan, had set a 60-day period to establish conditions for ending hostilities that began in February 2026. Donald Trump announced in the Oval Office on Monday that he would not extend the framework, stating that Tehran refused to accept the terms Washington considers necessary. Direct negotiations over Iran's nuclear programme were never initiated during the two-month window. Pakistan, which signed a mutual defence pact with Saudi Arabia and Turkey during the conflict, has sought to bring both sides back to the negotiating table.

Escalating threats against Muscat

Tensions expanded to Oman as the Sultanate conducted bilateral talks with Tehran to establish joint management of the Strait of Hormuz. In an unannounced telephone call with Fox News reporter Trey Yingst, Donald Trump issued direct warnings against Muscat if it hinders American objectives in the waterway.

If Oman gets in our way, we will bomb them into the ground.

Trump added that he was under no time pressure and insisted that Iranian leaders should raise the white flag of surrender. The statement followed earlier warnings from Washington in late May 2026, when Trump told the Gulf nation to behave. On Tuesday, Trump shared a map of the Strait of Hormuz on Truth Social, labelling the international shipping passage as new territory of the United States. Bilateral ties between Washington and Muscat trace back to the 1833 Treaty of Amity and Commerce, and Oman has operated as a neutral intermediary in regional disputes.

Iranian demands and leadership changes

Tehran rejected American claims of control over the waterway and reiterated conditions for any long-term resolution. Iranian Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf addressed parliament in Tehran, stating that the Strait of Hormuz will remain closed until Washington lifts its blockade on Iranian ports. Ghalibaf also demanded the removal of oil export sanctions, the release of frozen foreign assets valued in the hundreds of billions of dollars, and an end to military campaigns against regional allies including Hezbollah in Lebanon and the Houthis in Yemen. Internally, Tehran appointed Mohsen Rezaei, a former commander of the Islamic Revolutionary Guard Corps during the Iran-Iraq War, to head the Supreme National Security Council. Iranian analyst Vali Nasr commented on the strategic standoff between both administrations.

The war is in a holding pattern, with each side waiting for the right moment and opportunity to strike. Iran will not allow Trump to de-escalate the intensity of the war when it suits him. They are willing to disrupt Trump's plan through escalation.

Maritime disruption and oil market reactions

The breakdown of talks accompanied renewed military action within the waterway, where roughly 20% of global petroleum usually transits. On Tuesday, an unidentified projectile struck a commercial vessel in Omani waters, causing one crew casualty and damaging the engine room before the Omani Coast Guard assisted the survivors. Commercial maritime traffic collapsed from more than 130 ships daily before late February 2026 to an average of 12 vessels per day in the second week of August. Brent crude oil prices rose above $90 per barrel on Tuesday, surpassing that threshold for the first time since 30 July 2026. Bilateral discussions between Tehran and Muscat continue regarding proposed voluntary transit fees and shipping channels routed primarily through Iranian territorial waters.