Iran on Wednesday (May 27, 2026) said a return to war was unlikely but that its military was nonetheless “lying in wait”, while U.S. President Donald Trump threatened to “finish the job” if Tehran did not agree to deal.
The mixed signals underscored the fragile state of talks aimed at ending a West Asia war that has shaken global energy markets and effectively closed the Strait of Hormuz.
“Iran is very much intent, they want very much to make a deal. So far they haven’t gotten there. We’re not satisfied with it, but we will be,” Mr. Trump said at a televised White House cabinet meeting.
“Either that or we’ll have to just finish the job.”
Mr. Trump also appeared to direct a warning at Oman, a U.S. ally and mediator in the conflict, when asked about a possible short-term arrangement allowing Iran and Oman to control the Strait of Hormuz.
“No, the Strait is going to be open to everybody,” Mr. Trump said. “It’s international waters, and Oman will behave just like everybody else or we’ll have to blow them up. They understand that, they’ll be fine.”
The White House did not immediately clarify whether Mr. Trump had misspoken. Oman has played a mediation role in the war and has itself come under attack from Tehran.
Iranian media reported early Thursday (May 28, 2026) morning that three loud explosions were heard near the port city of Bandar Abbas, around 1:30 a.m. (2200 GMT on May 27).
Earlier on Wednesday (May 27, 2026), Iranian Revolutionary Guards official Mohammad Akbarzadeh said the likelihood of “war is low because of the enemy’s weakness”, but warned the military was “lying in wait with full magazines” if attacked, Tasnim news agency reported.
Mr. Trump, who said at the weekend a deal was close, also told the cabinet meeting he was in no rush.
‘Complete fabrication’
The West Asia war erupted in late February with U.S.-Israeli strikes on Iran, sending oil prices soaring.
Hopes of an imminent deal sent benchmark oil contracts falling more than 5% Wednesday (May 27, 2026).
Global stocks mostly rose, with all three major U.S. indices posting modest gains and fresh records, as investors looked past conflicting signals from Washington and Tehran.
Traders were also buoyed by a retreat in U.S. Treasury yields as oil prices fell, while another surge in technology stocks added momentum to the rally.
Economists have warned that prolonged disruption in the Strait of Hormuz could keep energy prices elevated, feed inflation and force central banks to raise interest rates.
Adding to optimism, Iranian state TV reported that Washington had committed in a draft framework to lift its naval blockade, restore traffic through Hormuz and withdraw US forces from the Gulf.
The report cited what it called a draft memorandum outline, but the White House dismissed it as “a complete fabrication”.
A day earlier, Iran accused the U.S. of breaching the ceasefire after the most serious strikes since the truce took effect, and warned it was ready to retaliate.
The U.S. military said it launched “self-defence strikes” on Iranian missile sites and mine-laying boats overnight Monday to Tuesday.
‘Will there be missile strikes?’
Iran and the U.S. have traded threats for weeks while negotiating through Pakistani mediation.
Neither side appears ready to compromise on the main sticking points: Hormuz and Iran’s nuclear programme.
On Wednesday (May 27, 2026), the Revolutionary Guards’ navy said only ships “willing to abide by Iranian order” could pass through Hormuz.
U.S. Secretary of State Marco Rubio said Tuesday (May 26, 2026) that a deal remained within reach, but that the Hormuz would be reopened “one way or the other”.
Iranian authorities also partially restored access to the global internet Tuesday (May 26, 2026) after a three-month shutdown.
“I do feel better now because I finally can use my favourite applications,” said Hana, a 20-year-old student in Tehran who gave only her first name.
“At the same time, I have this concern that war might resume any minute and just cut me off again from my friends.”
Amir, a 27-year-old software developer in the Iranian capital, also feared renewed fighting despite talk of a deal.
“I feel like nothing is certain yet,” he said.
“The daily question is: Will there be missile strikes tonight?”
Fighting expands in Lebanon
In Lebanon, Israel launched broad strikes on Wednesday (May 27, 2026) and declared a huge swathe of the south a new combat zone, urging residents to leave.
The warning further strained an April 17 ceasefire that has done little to halt fighting between Israel and Iran-backed Hezbollah, which drew Lebanon into the war by attacking Israel in early March.
Iran says any peace accord must apply to Lebanon.
An Israeli military spokesman warned civilians to evacuate north of the Zahrani River, about 40 kilometres (25 miles) from the Israel-Lebanon border, “as all areas south of the river are considered combat zones”.
Hezbollah said its fighters clashed with Israeli forces “at point-blank range” in a strategic town just beyond an Israeli-declared “yellow line” in south Lebanon.
ldIsraeli Prime Minister Benjamin Netanyahu vowed Monday (May 25, 2026) to “crush” Hezbollah, while army chief Lieutenant Colonel Eyal Zamir said Wednesday (May 27, 2026) that Israel was “intensifying our operations” against the group.
Published – May 28, 2026 07:09 am IST
