# Iran Peace Deal Deadline Passes as Both Sides Dig In

The 60-day deadline for a U.S.-Iran peace deal expired Monday with the two sides further apart than when the agreement was signed in June. The deal, signed by President Donald Trump at Versailles, called for an end to the war with Iran and a resolution of its nuclear program. It also required the reopening of the Strait of Hormuz and the lifting of a U.S. blockade on Iran. Neither has happened. Talks have focused only on the strait and the blockade. There has been no sign of compromise on the waterway, and detailed nuclear negotiations have not even begun. The U.S. faces difficult choices. Accepting Iran's demands would mean giving Tehran control over a critical waterway that carried one-fifth of the world's traded oil and gas before the war. Escalating the conflict would drain U.S. supplies of advanced missile interceptors, hurt the global economy, and raise gas prices ahead of U.S. congressional elections. So both sides have dug in, hoping the other will blink first. So far, neither has. **The interim deal collapsed weeks later** The June agreement, known as the Memorandum of Understanding, called for a halt to all military operations and set a 60-day deadline for a permanent end to the war. It also gave Iran a vaguely defined role in facilitating traffic through the Strait of Hormuz, leaving open the possibility it could charge fees. Iran has seized on that clause to claim control over the waterway. A week after the deal was signed, Iran began firing on vessels using a U.S.-overseen route along the coast of Oman. The U.S. responded by striking Iran, which retaliated by attacking Arab countries hosting American forces. The U.S. then canceled waivers that had allowed Iran to sell oil internationally and restored a blockade of Iran's ports. Each side accused the other of violating the agreement. Almost nothing of it remains. Fighting eventually died down. A related truce in Lebanon between Israel and the Iran-backed Hezbollah has mostly held, even as Israeli troops occupy large areas in the country's south. **Iran's leaders think they can force Trump to give up the strait** Earlier this month, Iran issued a list of demands for reopening the strait, including the lifting of the American blockade, the withdrawal of U.S. forces from around Iran, and the payment of reparations for war damage. Even then, Iran said it would control the strait and potentially charge fees through an agreement it is negotiating with Oman. It said the waterway will not return to being open and toll-free. Iran-backed Houthi rebels in Yemen have also begun attacking Saudi oil tankers in the Red Sea, threatening another crucial trade route. Trump has rejected Iran's demands, saying it is Tehran that should pay war reparations. He appears to be relying on economic pressure — the blockade and longstanding sanctions — to force Iran's leaders to give in. Iran's economy has been battered by the war and isolation. Inflation has soared. The crisis could spark renewed anti-government protests, like those that were brutally crushed in January. Traffic through the Strait of Hormuz, which rose briefly after the interim deal, is back to a small fraction of pre-war levels. Rising fuel and goods prices are expected to climb further the longer this continues, with effects far beyond the Middle East. The clock is still ticking for both sides.