Iran Warns of "Full Attack" as US-Iran Truce Talks Fail

Iran will move to a "fully offensive" military stance after peace talks with the United States collapsed, a senior Iranian official told Reuters on Monday. Washington has ruled out extending the temporary ceasefire.

A June 17 memorandum had given both sides 60 days to reach a final deal on Iran's nuclear program and US sanctions. But the truce broke down over control of the Strait of Hormuz, through which a fifth of the world's oil once passed. Iran claims management rights under the deal though the US disagrees.

President Trump confirmed he would not extend the interim agreement. Still, reports suggest a back channel has opened between Washington and Iran's Revolutionary Guard Corps (IRGC), now a dominant force in Iran's military and economy. Special envoy Jared Kushner said US-Iran communication is "more robust" than ever.

Iran says the US must fully honor the memorandum within weeks before talks can resume. Meanwhile Tehran is negotiating separately with Oman over the strait a move Trump threatened to punish with military force if Oman "gets in the way."

The war began February 28, has killed thousands and mostly in Iran and Lebanon. Iran has struck US bases in Oman, Jordan, Kuwait, Israel, the UAE and Saudi Arabia.

Oil prices have surged, with Brent crude near $91 a barrel. US gasoline prices have risen past $4 a gallon also a growing concern ahead of November's elections.