damage. The effective blockade has rattled allies, roiled markets, and pushed up prices, but President Trump said he was "low-keying it", betting he could outlast Tehran economically. Tehran insists on retaining control of Hormuz after the war and wants to charge tolls for passage, repeatedly striking ships it accuses of circumventing its preferred route. Attacks in the previously free-to-transit waterway collapsed April's ceasefire, and mediators have urged a return to a June memorandum setting out a path to peace talks.

On Saturday, Iran's Supreme National Security Council laid out conditions for reopening the strait: an end to the war on all fronts, lifting the US counterblockade of Iranian ports, ending sanctions, releasing frozen assets, and wartime compensation. These echoed the June agreement, which also included a $300 billion reconstruction fund for Iran.

"The strait is now actually a theatre of war for us and not just a waterway", Guards said Sunday. The closure has raised prices for American voters, a headache before November's midterm elections, but Trump remained optimistic: "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money. It will work out. It's like a chess game." Iran's foreign minister said Tehran was only "exchanging messages" with the US via intermediaries. Traffic through Hormuz has dropped sharply, with at least one tanker struck Saturday. Oman condemned the attacks and said negotiations on navigation arrangements were proceeding, warning against actions that could jeopardize progress; Araghchi said talks on managing the strait were "approaching the final stages".

Meanwhile, Iran's Houthi allies in Yemen declared a parallel maritime blockade on Saudi Red Sea ports. They struck a Saudi oil facility Sunday, and a medical source said Houthi strikes on Mokha's port killed three civilians and eight military personnel. The Houthis said they targeted "Saudi enemy" troops with missiles and drones.

Finally, amid the unprecedented challenge to its stability reputation, Saudi Arabia signed a joint defense agreement with Turkey and Pakistan on Friday - including a NATO-style mutual-defense clause. Turkey's foreign minister expects Egypt to join, calling it "a natural partner". Officials insist the pact, aimed at "collective deterrence", targets no specific country. (Bssnews)