US declares end of Iran truce as diplomacy collides with retaliation threats

The escalation began Monday night with attacks on commercial navigation near Hormuz, continued Tuesday, and was followed Wednesday morning by strikes on US positions after CENTCOM forces hit more than 80 targets in southern Iran.

Tehran claimed it had struck 85 targets, all of them US interests.

Inside Iran, hardline media quickly framed the confrontation as proof that the June MoU with Washington had failed—or that it had only served to expose US intentions.

The Tehran municipal daily Hamshahri argued that the MoU was not a concession but proof Washington had recognized Iran’s missile capabilities and regional leverage.

It said the latest maritime confrontation showed any attempt by the US or its allies to impose terms during the 60-day implementation period would risk disruption of global energy routes.

Other hardline outlets, including Kayhan, went further.

Writing with vindicated fury, editor Hossein Shariatmadari declared that the “60-day diplomatic mirage” had vanished exactly as he predicted, calling the US strikes proof of “Washington’s innate treachery and structural inability to honor any MoU.”

More than a military confrontation, the attacks appear to reflect a growing divide among Iranian decision-makers: those seeking to advance an agreement with Washington and those who argue that only direct revenge against US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu would be sufficient.

Over the past month, radical hardliners in Tehran—who portrayed their own survival and the system’s survival as victory over the United States—have sharply criticized President Massoud Pezeshkian for signing the MoU with Washington.

They argued that before the agreement, Trump was under pressure from politicians and markets, and that Iran could have extracted better terms.

While the anger surrounding Khamenei’s funeral cannot be dismissed, the divide between Tehran’s hardliners and pragmatists appears to be a major factor behind the renewed confrontation that followed Trump’s conciliatory comments about allowing a peaceful funeral for the man he had ordered killed.

Whatever the precise trigger, the escalation has strengthened the hand of hardliners.

Social-media videos from the funeral in Tehran showed radicals throwing stones at Foreign Minister Abbas Araghchi and chanting slogans against Pezeshkian.

On Wednesday, ultraconservative MP Hamid Rasai called for a missile strike on Trump’s residence during his visit to Ankara for a NATO meeting, while fellow hardliner Mahmoud Nabavian said Muslims worldwide were expected to attack Trump the way Salman Rushdie was attacked.

Trump said he had always known he was a target for “nasty Iranians,” adding that if they had nuclear weapons, they would certainly use them.

On Wednesday, Hamshahri went further, arguing that strikes on US assets in Kuwait and Bahrain demonstrated that the cost of confrontation would not remain limited to Iranian territory.

The paper said Washington’s move to revoke Iran’s oil-export waivers amounted to total economic warfare and justified an equivalent response: closing the Strait of Hormuz.

“If Iran cannot openly sell its crude, no state in the region will be permitted to export energy,” it warned.

Kayhan urged the Pezeshkian administration to abandon the June framework, restrict maritime access and shift to what it called an unrestricted defensive doctrine under the guidance of the new Supreme Leader, Mojtaba Khamenei.

Meanwhile, figures including parliamentary National Security Committee spokesman Ebrahim Rezai and Mojtaba Khamenei’s military adviser Mohsen Rezai declared Iran’s readiness for combat.

Chief of staff of the armed forces Habibollah Sayyari also warned against any ground operation.

“If the enemy deploys forces to the Iranian shores, their troops will enter a hell that has no exit,” Sayyari said—a remark widely circulated online, with critics joking that it unintentionally described conditions inside the Islamic Republic itself.

The US Treasury Department revoked the June 21 general license that had allowed the production, delivery and sale of Iranian-origin crude oil and petroleum products, reversing a rare sanctions relief measure at the center of Washington’s negotiations with Tehran.

OFAC said the new license, effective July 7, allows existing transactions to be wound down until July 17 but bars new purchases or loading of Iranian-origin crude oil and petroleum products from Tuesday.

For Tehran, the 60-day license was more than a technical waiver. It briefly reopened a channel to international oil markets after decades of US pressure on Iran’s energy exports, allowing sales including to China as Washington tried to keep diplomacy alive.

The move came hours after the United Kingdom Maritime Trade Operations (UKMTO) said three tankers were attacked near the Strait of Hormuz on Tuesday, prompting the regional maritime threat level to be raised to “severe.”

A US official said Iran’s actions in the Strait of Hormuz were “wholly unacceptable” to the United States and would be met with consequences, Reuters reported Tuesday.

Among the vessels targeted was the Qatari tanker Al Rakayat, which Doha said was attacked while transiting near the Strait of Hormuz. Qatar summoned Iran’s charge d’affaires in Doha to protest the targeting of the tanker.

In response, Iranian Foreign Ministry spokesperson Esmaeil Baghaei urged Qatar to “avoid any action” that would contradict the memorandum of understanding between Tehran and Washington.

Baghaei said Tuesday that under Clause 5 of the memorandum, the Islamic Republic was committed to taking the necessary measures for the future management of the Strait of Hormuz and providing maritime services.

He said some commercial vessels had used routes not coordinated with Iran while turning off or manipulating AIS tracking systems, which he said created risks of collision, environmental harm and disruption to Iran’s efforts to facilitate safe passage through the strait.

Persian Gulf states including Saudi Arabia, Qatar, Bahrain and the United Arab Emirates condemned the attacks, calling them a threat to international navigation, regional stability and energy supplies.

Inside Iran, Mohsen Rezaei, a former IRGC commander-in-chief and current military adviser to Supreme Leader Mojtaba Khamenei, said the United States would doom negotiations with Iran to failure.

“Those opposed to the talks should wait, because the Americans themselves will derail these negotiations,” Rezaei said Tuesday.

Nezamoldin Mousavi, an Iranian hardline politician and former head of the IRGC-affiliated Fars News Agency, wrote on X that after Washington revoked the Iran oil sanctions waiver, Iran had “no card left” except closing the Strait of Hormuz.

He urged lawmakers to approve a three-urgency bill next week to leave the NPT.

The escalation comes as the coffin of slain Supreme Leader Ali Khamenei has arrived in Iraq but has yet to be buried, leaving eyes once again fixed on the Strait of Hormuz.

Participants carried placards resembling assassination target lists, with red crosshairs superimposed on the faces of several US and pro-Israel figures.

Those pictured included Trump, Republican Senator Lindsey Graham, conservative commentator Ben Shapiro, activist Laura Loomer, Israeli-American billionaire Miriam Adelson, Foundation for Defense of Democracies chief Mark Dubowitz, investor Peter Thiel and others.

The placards read: “Sooner or later, your heads will roll.”

Participants also hanged an effigy of Trump, while others carried a large banner reading “Kill Trump – $100 Million Iranian Bounty” in front of the vehicle carrying Khamenei’s coffin.

A video published online showed Islamic Republic supporters throwing stones at a poster of Trump before tearing it apart.

In another video from the procession, mourners chanted: “We don't want a deal, we want Trump's head,” underscoring the contrast between public calls for revenge and the Islamic Republic’s parallel ceasefire and negotiation track with Washington.

The IRGC-affiliated Fars News Agency separately published footage showing supporters waving red flags and calling for revenge over Khamenei’s killing, reinforcing the retaliation theme that ran through the procession.

A large English-language poster depicting Trump and Israeli Prime Minister Benjamin Netanyahu as wanted men was also displayed among the crowds, featuring threats including “There will be blood” and “Kill Trump” alongside images of the two leaders marked with crosshairs.

Iranian officials and pro-government figures have repeatedly called for revenge over Khamenei’s killing, while insisting that retaliation is separate from the country’s ceasefire and negotiation process.

Inside Tehran’s metro system, Islamic Republic supporters chanted slogans against negotiations with the United States, including: “We did not give martyrs to make peace, or to praise the murderer Trump.”

Another group chanted: “Death to the foreign-backed Pahlavi,” referring to exiled prince Reza Pahlavi, who has called for the end of the Islamic Republic.

The funeral, staged as a mass display of loyalty to the Islamic Republic’s slain leader, became a platform for threats against US and Israeli figures and against Iranian opposition figures abroad.

Organizers did not explain why different Quranic passages were recited for each delegation. However, several Iranian media outlets portrayed the selections as deliberate rather than routine religious readings.

The news website Fararu wrote that the verses appeared to have been chosen "not randomly, but deliberately." Conservative outlet Tabnak described the practice as "an innovation in public diplomacy," saying the tailored recitations could be interpreted as ethical and political messages to each delegation.

The verse that drew the greatest attention was recited as Saudi Deputy Foreign Minister Waleed bin Abdulkarim approached Khamenei's coffin.

The passage, Verse 13 of Surah Al Imran, recalls the Battle of Badr, in which the Prophet Muhammad's followers defeated a much larger force. It concludes: "God supports whom He wills with His help. Surely in this is a lesson for those with insight."

Some linked the choice to Iran's recent conflict with Israel and the United States, during which Saudi Arabia was reported to have allowed US military operations from its territory while also urging Washington to avoid a wider regional war.

The verse recited for Turkey's delegation highlighted the superiority of believers who fight in God's cause over those who stay behind without valid reason. Some commentators interpreted it as a reference to Ankara's cautious approach during the recent conflict and broader regional crises.

Lebanon's official delegation and a separate delegation from Hezbollah received different passages. The Lebanese state delegation heard a verse suggesting that following divine guidance and making sacrifices in God's cause would have been better for them. Hezbollah, whose name means "Party of God," was greeted with a verse promising victory for the "Party of God."

The Hamas delegation received a verse praising believers "who have remained true to the covenant they made with God" and never broke their pledge.

Khomeini’s grandson draws attention

Another widely discussed moment came when members of the family of Islamic Republic founder Ruhollah Khomeini approached the coffin.

Verse 95 of Surah An-Nisa, which contrasts believers who stay at home with those who strive "with their wealth and their lives" in God's cause, began to be recited as former leader’s grandson Hassan Khomeini approached.

Videos circulating online appeared to show him leaving the ceremony shortly after the recitation began, prompting criticism from some conservatives.

Hassan Khomeini is generally associated with Iran's reformist camp.

Mixed reactions

The choice of Quranic passages prompted widespread discussion on Persian and Arabic-language social media.

Supporters argued the selections reflected the recent conduct of regional governments rather than personal criticism.

One Persian-language user wrote that reminding neighboring countries of the consequences of their policies during the war was "a reminder of responsibility, not an insult."

Others argued that using Quranic verses to criticize official mourners was inappropriate.

"If the selection of the verses recited during yesterday's ceremony was intentional, then it was a mistake," one user wrote. "Taunting a guest who has come to offer condolences is consistent neither with our cultural traditions nor with religious teachings."

Another user wrote: "I do not agree with reciting Quranic verses to criticize anyone who has come to pay their respects. It is inappropriate. As far as I know, reproaching guests was never the practice of the prophets, the Prophet Muhammad, the Imams, or the martyred leader."

The discussion also spread across Arabic-language social media. Iraqi commentator Yaseen Aziz described the verses recited for the Saudi delegation as "an indicator of the existing hatred and the diplomatic stupidity of the current leadership in Iran."

The Security Council's meeting followed Iran's drone and missile attacks targeting Bahrain and Kuwait over the weekend, and its attacks on commercial vessels in or near the Strait of Hormuz, incidents that have threatened the June 17 memorandum of understanding between Iran and the US.

Ambassador Waltz said Iran had continued attacks despite diplomatic efforts and accused it of disrupting shipping through the Strait of Hormuz in violation of its MoU commitments.

“I cannot stress enough the possibility of real transformative positive opportunity for the nation and people of Iran is on the table,” Waltz said, adding: “But President Trump’s patience is not unlimited.”

He said Iran "cannot, and we cannot allow it to, hold the world’s economy hostage," urging Tehran to stop attacks on its neighbors and keep the international waterway open.

Bahrain’s foreign minister Abdullatif Al-Zayani, in turn, accused Iran of "deliberately" targeting civilian facilities, critical infrastructure and residential areas, resulting in the deaths of three innocent civilians and injuries to 465 others during its attacks on the Arab state.

Iran’s representative rejected the US and Bahraini statements as baseless and accused Washington and its allies of trying to silence Tehran’s position at the council. But Waltz pushed back sharply.

“Let me remind you where you are. This is not Tehran. This is the United States of America. This is the United Nations Security Council. You will not silence this body,” Waltz responded.

Waltz displayed photographs of damage in Bahrain, asking whether civilians, hotel guests and first responders hit by Iranian strikes were “lying.”

He rejected Iran’s claim of self-defense, saying the closure of international waterways and attacks on Singaporean and Panamanian-flagged vessels could not be justified under the UN Charter.

“It is a cynical, sad, and sick attempt at global blackmail. Plain and simple,” Waltz said.

Iran’s representative responded that 10 regional countries, including Bahrain, had facilitated US and Israeli attacks by allowing their territory and airspace to be used.

“I think that it should be clear for our neighboring countries that the presence of American bases in their countries not only does not bring security to their countries but also make their countries vulnerable,” Amir-Saeed Iravani said.

He also accused Washington of blocking international vessels from reaching Iranian ports.

Al-Zayani rejected Iran’s arguments, saying Security Council Resolution 2817 had already condemned Iranian attacks on neighboring states and threats to international navigation.

Addressing the same meeting, UN Assistant Secretary-General Elizabeth Spehar said the Secretary-General welcomed the joint decision by the United States and Iran “to de-escalate and exercise restraint,” saying the MoU offered “a measure of hope that dialogue and diplomacy can regain momentum."

Diplomatic efforts to implement the June 17 memorandum remain under strain following two days of talks in Doha, which covered frozen assets, the Strait of Hormuz and Lebanon.

The talks paused on July 1 and are expected to resume after funeral processions for slain Supreme Leader Ali Khamenei, set to begin in Tehran on July 4 and end with his burial in Mashhad on July 9.