Report: White House Still Looking at Alternatives to Iran Peace Deal

USS Boxer and USS Portland in Indian Ocean — Amphibs USS Boxer and USS Portland operating in the Indian Ocean, June 30 (Courtesy US Central Command)

Amidst fitful talks with Iran on formalizing an MOU on the end of the multimonth conflict, the Trump administration is still considering options other than a negotiated solution, according to the Wall Street Journal.

The president is said to be contemplating whether to return to war with Iran with greater intensity with a new round of strikes. For now, he favors diplomacy, and is willing to extend the ceasefire out past the current August 18 endpoint if needed. The pause in hostilities has been marked by repeated cycles of strikes and counterstrikes, driven in part by Iran's desire to control the Strait of Hormuz.

In conversation with conservative talk show host Michael Knowles on Tuesday, Vice President JD Vance partially confirmed that the administration was examining alternatives outside of the peace deal. He said that one purpose of the ceasefire was to buy time to refill the world's oil reserves in order to strengthen America's hand.

"I think what the president has told us to do is use this MOU to sort of refill the world's oil economy," Vance said. "And then to see where the hand is."

Iran's leadership is said to be split internally on what priority to set on the strait. On the one hand, the IRGC is highly motivated to attempt to wrest control of the waterway, deploying its military means if necessary - as it has several times since the start of the ceasefire. On the other, elements of the civilian leadership are more interested in obtaining access to Iran's frozen funds and rebooting the nation's stricken economy.

There may be a middle ground in the form of a plan for "voluntary" contributions from shipowners for a joint Iranian-Omani safe navigation fund, which would generate revenue for Iran without the overtly controlling appearance of a transit toll. IMO Secretary General Arsenio Dominguez has endorsed this version of the "fee" plan, and observed that comparable arrangement remains in place for the Strait of Malacca. "It’s learning from something that already exists, that is being tested," he told Al Jazeera on Tuesday.

In the meantime, shipping activity is picking up in the waterway - notably inbound activity. Eight empty VLCCs made it through the Strait of Hormuz on Monday, according to analyst Rory Johnston - a sign that GCC oil exporters will be getting the capacity they need to restart wells at full rate production.