US-Iran talks stall as Hormuz crisis deepens and oil prices spike

Iran's First Vice President, Mohammad Reza Aref, has warned that external adversaries, specifically the United States and Israel, are shifting their strategy to economic warfare following recent military standoffs, according to Iranian media.

Aref claimed the "enemy" is seeking to offset military setbacks by escalating economic pressure and exploiting domestic inflation to provoke social discontent.

According to Iran's ISNA news agency, Aref made the remarks at a meeting of the Market Regulation Headquarters, where he said Iran remained committed to international law but would not compromise on its rights.

Iran has criticised Canada for supporting the US amid the ongoing conflict with Tehran, with Foreign Ministry spokesperson Esmail Baghaei using an ice hockey reference to accuse Ottawa of acting as Washington's "farm team".

In a post on X on Sunday, Baghaei referred to Canada as Washington's "farm team"- a term used in ice hockey for a minor-league affiliate that develops players for a national-league parent club. He said, " This is not hockey night in Canada; It is Washington's Farm Team."

US envoy Jared Kushner is due to meet Israeli Prime Minister Benjamin Netanyahu on Monday after holding talks with Hamas leaders in Egypt aimed at reviving a US-backed Gaza peace plan that Israel has so far rejected.

The meeting comes two weeks after Hamas endorsed the latest stage of Trump's Gaza plan, which Netanyahu has refused to support, insisting any settlement must ensure the group is "genuinely disarmed".

Kushner -- Trump's son-in-law -- met Hamas's new leader Khalil al-Hayya in the Egyptian Meditarranean city of El-Alamein on Sunday, sources with knowledge of the talks told AFP.

Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, Prime Minister and Minister of Foreign Affairs of the State of Qatar, and Asaad Al-Shaibani, Minister of Foreign Affairs and Expatriates of the Syrian Arab Republic, held a telephone conversation, where they reviewed bilateral relations and ways to support and strengthen them. According to Qatar News Agency (QNA), the two sides also discussed the latest regional developments, particularly the diplomatic efforts and joint coordination aimed at de-escalation and enhancing security and stability in the region.

As the Aug. 17 deadline for the 60-day US-Iran memorandum arrives, Islamic Revolutionary Guard Corps (IRGC) political deputy, Brig. General Yadollah Javani warned that Iran's military posture could shift from defensive to offensive, telling state broadcaster IRIB that Tehran's future actions could take on an “offensive” form.

Reports by London-based Iran International and Tehran-based Press TV, also quoted Javani, who warned the US and Israel that Iran's armed forces would adopt “transformative approaches”.

General Javani stated that under the new appointment decrees issued by Iran's Supreme Leader Mojtaba Khamenei, any military action taken by Iran — while maintaining a defensive character in principle — will now take on an "offensive form" to deliver proactive strategic surprises and ensure maximum deterrence against adversaries.

Day 166: Israel strikes Lebanon as Iran-US tensions rise; Oman holds Hormuz talks

Day 165: US-Iran tensions rise over Trump’s Hormuz claim

Day 164: Iran demands faster US exit from Middle East

Day 163: 2 ADNOC vessels attacked in Hormuz; no injuries

Day 162: Trump says US has ‘total control’ of Strait of Hormuz

Day 161: Tehran: Hormuz stays shut as US-Iran diplomacy push continues

Day 160: Tehran reshuffles military

Day 159: Netanyahu rejects Gaza plan

Day 158: Trump says Iran can’t ‘go on much longer’

Day 157: Iran says Oman deal alone won’t reopen Hormuz