Iran Prepares for War While Keeping Diplomacy Open; Qatar Says US-Iran Talks Have Little Hope

After Trump rejected Iran's "7-day reopening of the Strait of Hormuz" ceasefire proposal, Iranian Foreign Minister Araghchi said Iran is "prepared for the resumption of war" while also stating that the door to diplomacy remains open. Mediator Qatar's Prime Minister admitted the conflict is "becoming increasingly difficult to resolve," with no clear path to an end. The US continues to escalate blockades and sanctions, and US diesel prices have surged over 70% since the conflict began, transmitting the negotiation deadlock to global energy markets.

After Trump rejected the ceasefire proposal, negotiations reached a deadlock. Iran is preparing for war while waiting for mediators to relay messages; mediator Qatar admitted there is currently no clear path to end the conflict.

According to Xinhua News Agency citing Iranian media reports on July 27, Iranian Foreign Minister Araghchi said Iran is prepared for the resumption of war with the US but has not given up on diplomatic engagement. He said, "We are fully prepared for the resumption of war," while also stating, "We are also ready for diplomatic engagement at any time." "This depends on the choice of US President Trump."

Earlier, Araghchi announced at a press conference at the UN headquarters in New York on July 25 that Iran had conveyed to the US through Qatar a plan to reopen the Strait of Hormuz, and if the US takes necessary actions accordingly, the strait could be reopened within seven days, restoring normal shipping. However, the Wall Street Journal reported on July 25 that Trump rejected Iran's proposal and told his aides he might resume bombing Iran after the US midterm elections in November.

However, Araghchi said that despite Trump's public remarks, the US has not formally conveyed its rejection to Iran through mediators. He reiterated that as part of an agreement to end the conflict, Iran is prepared to reopen the strait; in exchange, "we demand the unfreezing of illegally seized funds and assets, and hope to be able to sell oil."

Mediator Qatar's Prime Minister bluntly stated that the conflict is "becoming increasingly difficult to resolve," and there is currently no clear main strategy to end it.

Trump Says He Rejected Iran's Plan; Iranian Foreign Minister Says Waiting for Mediators to Relay White House's Final Position

According to Global Times, US President Trump said on July 26 local time that he rejected Iran's peace plan, which aimed to end the conflict, reopen the Strait of Hormuz, and resume nuclear negotiations between the two sides. In response to his remarks, Iranian Foreign Minister Araghchi emphasized the stance of resolving disputes through diplomatic channels and said Tehran will wait for a formal response from mediators. Reuters and other media analyzed on July 27 that the US-Iran conflict has dragged on for nearly seven months, with the game still ongoing and significant differences between the two sides' peace plans. Since the negotiations concern the Strait of Hormuz, a vital shipping route, their progress has had a clear impact on regional security and global energy markets.

According to IRNA on July 26, in response to Trump's remarks, Araghchi said in an interview that Iran's peace plan has been conveyed to the US through mediators, "Unfortunately, we have heard many contradictory statements from the US President. We are waiting for the mediators to inform us of the White House's final position, and we will respond accordingly." "Iran's adversaries have exhausted all methods, but none have achieved the expected results," Araghchi said. "Reaching a solution through diplomatic negotiations is the only way to break the deadlock for the other side."

IRNA analysis said that the US has imposed indiscriminate blockades on all Iranian ports and coastlines, forcing other countries to close their airspace to Iran and ban Iranian civilian aircraft from landing. From the perspective of international law, these measures can be seen as continued US military aggression violating Iran's territorial integrity and national sovereignty. In response to these threatening measures, Secretary of Iran's Supreme National Security Council Rezaei issued a stern warning, reminding neighboring countries of the possible consequences of cooperating with Washington. He said: "If relevant countries continue to participate in this adventurous action, their airports will no longer be able to continue operating."

Mediator: Negotiations "Increasingly Difficult," No Clear Path

As the main intermediary between the US and Iran, Qatar's Prime Minister Mohammed bin Abdulrahman Al Thani admitted in an interview with Bloomberg Television on July 27:

This conflict is very complex. We do not have a clear main strategy to end it—that is exactly what we are missing today.

He also mentioned that continued attacks by Iran-backed Houthi forces in Yemen and Iraqi militias on Saudi Arabia are making the situation increasingly difficult to manage.

According to the Wall Street Journal citing mediation sources involved in the negotiations, since Trump rejected the ceasefire proposal, Iran has not made any compromises. Gulf Arab officials said Iran demands that the US make concessions first for negotiations to proceed. Analysts described this as a "hopeless attempt."

Nuclear Issue Remains the Core Sticking Point; Iran Takes a Hard Line

Mediators are currently pressuring Iran to make concessions on the nuclear issue to restart ceasefire negotiations. But according to the Wall Street Journal, Iran has so far not signaled any willingness to discuss its nuclear program with mediators.

Iran wants to return to a memorandum of understanding that Trump agreed to in June this year—which included reopening the Strait of Hormuz, unfreezing Iranian overseas assets, lifting some sanctions, and ultimately starting nuclear negotiations. Araghchi made clear that Iran's conditions are "not new demands" but "matters the US has already promised in the Islamabad memorandum of understanding."

However, US officials said Trump is no longer willing to return to that agreement, which is widely seen as favorable to Iran.

Behnam Ben Taleblu, Senior Director of the Iran Program at the Washington think tank Foundation for Defense of Democracies, analyzed:

All parties' positions are hardening, which is not surprising. Tehran is trying to push Trump back to a compressed version of the agreement it violated this summer; meanwhile, Washington seems intent on continuing to escalate sanctions and maintain the blockade until it perceives the other side's surrender.

Umer Karim, a Gulf security researcher at the University of Birmingham in the UK, pointed out that Iran's increasingly hardline government believes Trump and the Republicans will lose in the midterm elections. He believes that any concession by either side now would be interpreted by the other as weakness rather than sincerity in solving the problem.

Strait Situation Affects Global Energy Markets

Turkey's Anadolu Agency recently reported that due to the deadlock in US-Iran negotiations over the Strait of Hormuz, regional security risks persist and global oil prices remain relatively high. The New York Times, citing relevant data, said that because Saudi Arabia's east-west oil pipeline needs longer to repair, and with Houthi forces further controlling the Bab el-Mandeb Strait, Riyadh has again begun guiding ships through the Strait of Hormuz, thereby increasing the country's crude oil throughput along the Persian Gulf coast.

Restricted oil transportation and rising crude oil prices have significantly pushed up refined product prices. Recent data from the American Automobile Association shows that the US national average gasoline price has risen to $4.48 per gallon, up 50% since the conflict began, while diesel prices have risen even more sharply, up over 70% since the conflict began. This will have a major impact on the US economy, politics, and society.