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Iran ready for more intense war and won’t relent, official says

STRAIT OF HORMUZ, IRAN - MAY 16: An Iranian flag flutters in the wind as ships remain anchored on May 16, 2026 in the Strait of Hormuz near Larak Island, Iran. Negotiations between the U.S. and Iran over opening this critical waterway have largely stalled as the countries have rejected each other's proposals to end the war that began when the U.S. and Israel attacked Iran on February 28. (Photo by Majid Saeedi/Getty Images) Photographer: Majid Saeedi/Getty Images Europe
  • Iran vows to escalate counterstrikes if U.S. attacks continue, as it rebuilds its missile arsenal and refuses to back down under a U.S. naval blockade and attacks on its oil tankers, according to a senior official from the Islamic Republic.
  • Tit-for-tat strikes and a showdown over the Strait of Hormuz have pushed Brent crude above $100 a barrel and U.S. diesel prices to records, heightening political pressure before midterm elections.
  • Despite blockade-driven inflation near 90% and deadly protests, Iran’s leadership is split over escalating or negotiating, demanding sanctions relief and an end to naval pressure before reviving a collapsed ceasefire.

Iran is ready for a more intense war and will escalate its counterstrikes if the U.S. continues attacking its territory and infrastructure, according to a senior official from the Islamic Republic.

Tehran has no intention of backing down in the face of an American naval blockade and attacks on its oil tankers, said the official, who asked not to be identified discussing sensitive matters. Economic pain may be increasing, they said, but the country’s leaders see the war with the U.S. as posing an existential threat that leaves them little choice but to keep fighting.

Iran has been rebuilding its military capabilities since the most intense period of the war ended in April and has enough missiles for a lengthy conflict, the official added.

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The comments come as hostilities between the U.S. and Iran show little sign of easing, with the war now in its seventh month. Overnight, Washington said one of its warships had to evade an Iranian attack, and that it destroyed five of the Islamic Republic’s energy tankers in response. Tehran then fired around 20 missiles at a Jordanian airbase used by the U.S. and attacked more American navy ships, as well as several commercial vessels.

The tit-for-tat strikes have pushed up energy prices, with Brent crude climbing above $100 a barrel on Wednesday and extending its gain this year to around 65%. U.S. diesel pump prices hit a record last week, adding to pressure on President Trump to end a conflict that’s unpopular with voters ahead of midterm elections on Nov. 3.

Many of Iran’s leaders “believe the Trump administration responds only to threats and escalation,” Dina Esfandiary of Bloomberg Economics wrote. “They also think the administration is more sensitive to an escalating war in the lead-up to the midterm elections.”

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This week, Iran’s new security chief, Mohsen Rezaee, said its military posture toward U.S. ships and bases had been “fundamentally recalibrated,” signaling a more aggressive stance.

Mohammad Bagher Ghalibaf, the speaker of parliament and lead negotiator with the U.S. in previous ceasefire talks, warned the era of “proportionate responses” was over.

The war, which erupted when the U.S. and Israel began strikes on Iran in late February, has entered a stalemate of sorts, with both sides jockeying for control over the Strait of Hormuz. No official peace talks have been held for months and there’s little sign of the sides returning to the negotiating table.

The U.S., wary of fuel prices going up even more, and having used up a significant portion of its interceptor missiles, is trying to avoid a return to the full-on fighting of March and early April. Instead, it’s trying to squeeze Iran’s economy via the blockade and threats to penalize governments and companies that don’t cut ties with Tehran.

Its aim is to force Iran to reopen Hormuz and restart negotiations to end the conflict.

Iran continues to insist it has the right to manage traffic through the vital waterway and is regularly targeting ships that pass through without its permission. That is forcing the U.S. to respond militarily and raising the risk of an escalatory spiral.

The blockade is hurting the Iranian economy. With Tehran hardly able to export petroleum and import many vital goods, inflation has accelerated to almost 90% and the rial is depreciating rapidly. Economic pressures led to mass protests late last year, triggering a crackdown by authorities that killed thousands of people.

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The Iranian official acknowledged the worsening economic pain. Still, they said the country’s leaders believe they have little choice but to keep fighting until they’re confident Washington will be too wary to attack again in future.

Some Iranian officials, including President Masoud Pezeshkian, have said their country should negotiate with the U.S. to ease the economic pressures. Yet even they say the White House must first lift the blockade and go back to the terms of the so-called Memorandum of Understanding, a ceasefire deal signed in June that rapidly broke down.

“The political elites are locked in a debate over whether to escalate or just resist,” said Esfandiary. “Despite the debate, Iran is deciding how to retaliate faster and more efficiently, suggesting it has developed a menu of responses to U.S. escalation. It seeks to impose greater costs on the U.S.”

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