US-Iran Memorandum of Understanding Expires, Escalating Tensions Over Strait of Hormuz

The 60-day US-Iran Memorandum of Understanding, intended to curb hostilities and address the blockade of the Strait of Hormuz, expired on August 17, 2026, without a breakthrough in peace talks. This has led to heightened tensions, with Iran reportedly offering a bounty on US soldiers and President Trump threatening to declare the Strait of Hormuz US territory. Oil prices have risen due to fading peace expectations and continued disruptions to shipping traffic in the vital waterway.