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Esper Warns Strait of Hormuz Deal Could Harm U.S.

Aug 26, 2026 •World News

President Donald Trump insists he is personally behind talks aimed at reopening the Strait of Hormuz. He told reporters a deal with Iran has not been signed yet, but negotiations are moving along "very well." The White House stopped broadcasting coverage on this front after those remarks.

Former Defense Secretary Mark Esper sounded an alarm Friday about what could happen next. Speaking on Fox News' "America Reports," he warned that any arrangement letting Iran and Oman manage traffic through the narrow waterway might lead to a "very bad outcome" for the United States. Reports suggest Tehran and Muscat are close to striking a deal that splits passage into two lanes: one heading north into the Persian Gulf and another skirting along Oman's coast.

"They may or may not charge a fee, but they would administer and control it in one way, shape, or form, which would be a very bad outcome for us," Esper said on air. He pointed out that President Trump claims direct involvement in these talks while Iranian officials have publicly denied any U.S. participation.

"I think what we're waiting for now is to find out, is there a deal between Oman and Iran, and to what degree did the United States play a role or has a role in it," Esper added. The stakes are high because this route remains one of the world's most critical chokepoints for oil shipments. If foreign powers gain authority over its flow, American energy security could take a hit.

Meanwhile, President Trump honored Purple Heart recipients Friday. He paid tribute to service members wounded or killed while defending the country even as U.S. forces stay engaged in the ongoing conflict with Iran. "Today, on National Purple Heart Day, we express our tremendous gratitude to every American warrior and veteran who has received the Purple Heart," Trump said in a video released by the White House.

He noted that nearly 2 million Americans have earned this decoration, calling it a mark of the "courage, sacrifice, and grit" shown by men and women across all branches of the military. "Our country could not exist without those patriots willing to shed their blood for all of us," Trump stated. His message arrives just as American troops continue operations in the Middle East amid rising tensions with Tehran. Those ops include enforcing a blockade on Iranian ports and keeping pressure on negotiations regarding the Strait of Hormuz.

"We say God bless them, God bless our military, and God bless the United States of America," Trump concluded before signing off. The contrast between honoring heroes at home and managing a volatile foreign policy situation highlights the dual reality facing the administration right now.

A different kind of crisis is unfolding inside Tehran's notorious Evin Prison. An American journalist held there says conditions are falling apart fast. CBS News reports he fears exposure to tuberculosis and describes medical care as "almost non-existent." The source of these claims is Reza Valizadeh, a dual Iranian-American citizen who has been imprisoned since 2024. The State Department considers him wrongfully detained.

"Diseases that were eradicated decades ago have returned inside the prison, including pulmonary and gastrointestinal tuberculosis," Valizadeh said according to CBS. These words paint a grim picture of life behind bars in Iran today. Tuberculosis was once under control globally but is now resurfacing in facilities like Evin where overcrowding and poor ventilation allow it to spread unchecked. The lack of proper treatment leaves inmates vulnerable to serious infection and death.

This situation adds another layer of risk to the broader instability in the region. When a nation struggles internally, its foreign policy moves can become even more unpredictable. If medical care for prisoners deteriorates further or if diplomatic talks over strategic waterways fall apart, the consequences could ripple far beyond borders. Communities relying on stable trade routes face real danger if control shifts to actors with different priorities than those of the United States.

The path ahead looks uncertain. One day America celebrates its brave warriors; another it grapples with threats from disease in foreign prisons and potential loss of access to vital shipping lanes. What happens next depends on whether deals can be reached, how long forces remain deployed, and what conditions like at Evin Prison continue to look like for those trapped inside.

An inmate who started coughing up blood spent months sharing a cell with other prisoners before finally getting hospitalized. Valizadeh said he also has been cut off from family for five straight months. His fellow American, Kamran Hekmati, was forced back to Evin prison after less than a month of medical leave despite signs that cancer might be returning.

His lawyer is now urging President Donald Trump to make the release of wrongfully detained Americans a top priority as talks with Tehran move forward. Fox News Digital's Emma Bussey contributed to this reporting. Meanwhile, Iran foreign minister Seyed Abbas Araghchi called for Muslim unity against "malicious outsiders" while tensions with Washington stay high.

On Friday, Araghchi praised the strength of Tehran's armed forces and asked for closer ties among Muslim nations. "Iran's Powerful Armed Forces have shown their readiness, capability, and might in face of the world's most expensive military," he wrote on X, a post that seemed aimed at the U.S. military. He added, "When Muslims stand together, we can face every challenge by malicious outsiders head-on." His message ended with a call to rely only on themselves and embrace true brotherhood.

These remarks arrive as President Donald Trump says he is personally involved in negotiations about reopening the Strait of Hormuz. U.S. forces keep enforcing a blockade against Iranian ports and coastal areas during this time. The X account that shared Araghchi's message has been designated by Iran's Ministry of Foreign Affairs as his official channel.

In another development, the former captain of a tanker that hauled roughly 1.8 million barrels of Iranian oil received a sentence Friday. He was ordered to serve 10 months in prison after refusing U.S. Coast Guard orders and leading authorities on a weeks-long chase across the Atlantic. Avtandil Kalandadze, 47, from the Republic of Georgia, captained the Bella 1 from September through late December 2025, according to the office of U.S. Attorney Jeanine Pirro. Prosecutors said the ship carried Iran-origin oil to Asia while using tricks to hide its activity, such as shutting off its Automatic Identification System and hiding the vessel's name during a transfer between ships.

"Kalandadze captained a vessel used to conceal illicit oil shipments for U.S. adversaries, and when the Coast Guard ordered him to stop, he fled," Pirro said. The Bella 1 was caught by the Coast Guard Cutter Munro while heading toward Venezuela in December 2025 but refused orders to halt and fled across the Atlantic instead. Authorities finally seized the ship on January 7. Kalandadze pleaded guilty in June for failing to stop when ordered and will be deported once he finishes his sentence.

Elsewhere, Ukrainian President Volodymyr Zelenskyy thanked the U.S. Senate on Friday for moving forward with the Lindsey O. Graham Sanctioning Russia and Iran Act. He said the measure would boost pressure on Moscow to end its war against Ukraine. "Adopting the Lindsey Graham Sanctioning Russia and Iran Act certainly helps increase pressure on the aggressor to bring this insane Russian war against our independence and our people to an end," Zelenskyy wrote on X.

He noted that Ukraine remains grateful for bipartisan U.S. support but warned that President Vladimir Putin is increasingly using ballistic missiles as Kyiv looks for more Patriot missiles to strengthen air defenses. "Real, strong American pressure and sanctions against Russia are what will help the most," he wrote. These international moves highlight how fast situations can shift when oil flows are blocked and diplomatic windows narrow.

Diplomacy comes closer with every step of pressure on the aggressor." That was the sentiment driving recent moves in Washington as the Senate pushed forward a sanctions package earlier Friday. The measure targets both Russia and Iran before heading to the House for final action. Meanwhile, U.S. Central Command reported that American forces have already redirected 51 commercial vessels enforcing the blockade against Iranian ports and coastal areas.

A photo shared by CENTCOM showed a sailor standing watch inside the combat information center aboard the guided-missile destroyer USS Mason as the ship sailed through regional waters supporting the operation. "As of Aug. 7, CENTCOM forces have redirected 51 commercial vessels, disabled 2, and boarded 2 to ensure compliance," the command stated on X. This latest count arrives while the U.S. keeps military pressure on Tehran, even as President Donald Trump claims negotiations are underway to reopen the Strait of Hormuz.

The Department of War also took center stage Friday by touting its push to strengthen domestic critical mineral supply chains. They framed this effort as essential for maintaining American military dominance. "Securing our domestic supply chains is vital to building a lethal Arsenal of Freedom for the American warfighter," Pentagon Chief Technology Officer Emil Michael said in a graphic the department shared. The Office of Strategic Capital is partnering with private industry to expand the U.S. industrial base and shore up domestic supplies of critical minerals used in advanced defense technologies.

This message comes as the Trump administration moves to reduce reliance on foreign mineral supply chains. President Donald Trump announced billions of dollars in new mining and processing investments Friday at a State Department roundtable. The Department of War noted that these materials are critical to technologies enabling U.S. forces to maintain "DOMINANCE across all domains of warfare."

President Donald Trump told participants at the mining roundtable he needed to move quickly because he has "a war to prosecute," as his administration pushed this major buildup aimed at reducing dependence on foreign powers. "If you could go quickly, I would appreciate it, because we have a war to prosecute. OK? That's my excuse for getting out of here a little bit early," Trump said amid the ongoing U.S.-Iran conflict. He announced $100 million for U.S. mining schools and argued that rebuilding the domestic minerals industry is critical to American economic and national security, drawing a direct comparison with China.

"Accredited mining programs in the United States now graduate less than 170 mining engineers each year, while China graduates more than 3,000," Trump said. The president stated his goal is to ensure America is "never again reliant on hostile foreign nations for the resources our country needs to dominate in the future." Secretary of State Marco Rubio echoed that message, saying the administration wants mineral supply chains that are "diversified and reliable" so "no country can ever hold this over our head and threaten us in the future." Trump also pointed to Beijing's energy strategy, noting, "China is smart, and they're using coal," while arguing the U.S. must catch up.

State Department sanctions hit six entities and one person accused of funneling illicit cash to Iran via digital assets, a move directly linked to Tehran's recent strikes on commercial ships in the Strait of Hormuz. Spokesperson Tommy Pigott told reporters that the Iranian regime washes billions through channels like crypto exchanges to stay connected to the global banking world despite American restrictions. "The United States will continue to deny the regime the resources it needs to threaten its neighbors and innocent vessels, support terrorism, and advance its nuclear ambitions," Pigott stated. The penalties focus on two major digital asset platforms Tehran relies upon, plus a web of firms caught facilitating crypto crimes and bypassing sanctions. Meanwhile, the Rewards for Justice program is putting out up to $15 million for tips that disrupt financial tools used by Iran's Islamic Revolutionary Guard Corps and its branches.

A retired two-star Marine general issued a stark warning Friday. He argued that letting Iran manage traffic through the Strait of Hormuz under any deal with Washington could break a bedrock rule of American security. "Anything that would allow Iran to continue to exert any kind of control over an international waterway would be a violation of one of the most fundamental precepts of our national security, which is freedom of navigation," retired Maj. Gen. Arnold Punaro said on Fox News' "America Reports." He spoke while officials discussed a plan where Iran might supervise inbound ships and Oman handle outbound ones. Punaro called such an arrangement a "terrible precedent," especially for the South China Sea where Beijing pushes hard for territorial control. "I could see Xi Jinping sending a thank-you note," he added with heavy implication. The general pushed back hard on easing sanctions or handing Tehran fresh money, insisting America must look at deeds rather than empty words.

The Treasury Department struck again Friday, taking aim at companies and individuals across multiple nations who helped Iran move hundreds of millions through its hidden banking network. The Office of Foreign Assets Control targeted exchange houses, front groups, and facilitators tied to Iran's Shahr Bank. These actors helped Tehran pull in oil cash and shift foreign currency using shell firms based in hubs like the United Arab Emirates, Hong Kong, and Singapore. "Iran's shadow banking system is buckling under Economic Fury, and the regime is running out of ways to move money," Treasury Secretary Scott Bessent said. "Every facilitator that keeps the regime afloat is putting a target on its own back." This strike marks the eighth action this year against Iran's clandestine finance network as the Trump administration ramps up its "maximum pressure" strategy. The new rules freeze U.S.-based assets of the named people and groups, stopping Americans from doing business with them.

Iran is quickly rebuilding its own mining and energy capacity while facing these blows. The State Department's action comes just days after Tehran attacked merchant vessels in the strait, an escalation that has rattled global trade routes. Punaro noted that if other nations watch this unfold without consequence, it could embolden similar moves elsewhere, creating a ripple effect that threatens stability worldwide. Bessent emphasized that every person or entity aiding the regime feeds its ability to fund aggression and nuclear work. The pressure campaign aims to starve Tehran of resources before it can consolidate control over strategic choke points. As sanctions tighten and financial lifelines get cut, the stakes for regional security climb higher by the day.

It has taken more than a year of halting progress and broken promises before the Senate finally pushed forward this heavy-handed sanctions package against Russia. This victory marks one of Senator Lindsey Graham's most significant political battles. The Lindsey O. Graham Sanctioning Russia and Iran Act cleared the chamber on another massive bipartisan vote and is now moving to the House. President Donald Trump backs the measure as well.

Ukrainian President Volodymyr Zelenskyy personally lobbied lawmakers last week for this exact outcome. He pleaded with Congress to restrain Russian President Vladimir Putin just hours after Graham's memorial service in Washington, D.C. On the Senate floor, Sen. Richard Blumenthal of Connecticut noted that while Zelenskyy watches from Ukraine and Putin watches from Moscow, he hopes Lindsey Graham is watching too.

The bill aims to cripple Putin's war machine by hitting Moscow's primary financial engine: oil and gas sales. It also expands sanction powers against Iran. These new rules restrict funding for the nation's weapons and energy sectors. Officials hope these steps help negotiators abroad secure a lasting peace agreement in the Middle East.

A North Korea expert told Fox News Digital that Washington can never take its eye off Kim Jong Un following a recent missile test during the Iran war. Pyongyang fired the projectile this week as tensions rose with the ongoing conflict over there. The short-range ballistic missile landed in waters off Japan, near North Korea's east coast, Thursday. This launch happened right before joint military exercises planned by the U.S. and South Korea for later this month.

"There is an unsettled conflict on the Korean Peninsula," retired Navy Rear Adm. Mark Montgomery told Fox News Digital on Friday. He described Kim Jong Un as a very unpredictable leader who seeks attention. "Something the United States can never take their eye off," Montgomery said. The admiral, a senior fellow at the Foundation for Defense of Democracies, pointed out that challenges in the Middle East and Russia-Ukraine wars sit alongside China pressuring Taiwan.

"You can never forget that the North Korean challenge to South Korea is sitting right there," Montgomery added. He argued there are no constraints on Kim Jong Un. No empowered elite, population group, or military unit could unseat him. "So we should always keep our eye on him," he said. "Pay attention to him and make sure we're constantly deterring any provocative behavior."

U.S. Indo-Pacific Command responded to the Thursday launch by stating it was aware of the event. Officials are consulting closely with allies and partners. Based on current assessments, this incident does not pose an immediate threat to U.S. personnel or territory. It also poses no danger to our allies. The United States remains committed to the defense of the nation.

Fox News' Liz Friden contributed to this report.

Pakistan Prime Minister Shehbaz Sharif declared on Friday that a new defense pact with Saudi Arabia and Turkey will serve as a "shield of peace for generations to come." He posted this message on X, describing the three nations as brothers bound by faith, friendship, and a shared commitment to security. The agreement includes a critical clause stating that an armed attack against any single member counts as an attack on all three, according to Pakistan's foreign ministry. Leaders signed the deal in Mecca during a gathering with Saudi Crown Prince Mohammed bin Salman and Turkish President Recep Tayyip Erdogan. Sharif has been working hard to mediate talks between the U.S. and Iran to end the war.

White House National Economic Council Director Kevin Hassett addressed concerns about economic fallout from the conflict Friday. He admitted that oil energy prices are "a little bit inflated" but insisted the rise is far less than people expected. Hassett noted that gasoline costs remain high and officials are taking many steps to reduce stress for families struggling at the pump. Data from AAA confirms the national average price for a gallon of gas hit $4.04 as of Friday, down slightly from $4.06 yesterday and $4.11 just one week prior.

President Donald Trump plans to visit the State Department this afternoon for a mining roundtable while diplomatic efforts continue. The goal remains reopening the Strait of Hormuz. Trump claimed personal involvement in these negotiations on Thursday, telling reporters they are doing very well. He stated he is part of the negotiation and suggested a deal could happen soon.

Tension remains high over the Middle East after CENTCOM released a photo Friday of an F-35A stealth fighter jet being refueled by a KC-135 Stratotanker in the region's skies. The U.S. military launched Operation Epic Fury against the Iranian regime on Feb. 28. A ceasefire that briefly existed fell apart in early July, leading the military to resume strikes. CENTCOM carried out thirteen consecutive days of attacks on Iranian targets aimed at diminishing the threat posed to civilian mariners and commercial vessels transiting the waterway. The agency has since halted these specific attacks against Iran as the U.S. seeks a path forward.

Tehran and Washington are locked in talks aimed at reopening the Strait of Hormuz. Yet nuclear experts are sounding the alarm on a different front. They urge President Trump not to let Iran steer those discussions away from the regime's atomic ambitions. While diplomats hash out maritime access, specialists warn that the threat of a bomb remains central to Tehran's strategy.

On Wednesday, Prime Minister Benjamin Netanyahu responded to reported comments from Ahmad Vahidi, head of the IRGC. The Israeli leader insisted Israel would keep stopping Iran from getting a nuclear weapon, regardless of any diplomatic settlement. Reports surfaced regarding Vahidi's stance first in 2025 via an interview with an outlet linked to the Iranian regime. These remarks went viral on Wednesday but later investigation suggested they stemmed from a different context entirely.

Vahidi reportedly spoke to ILNA while serving as interior minister and IRGC adviser. His official line, according to an account published by Khabar online and shared with Fox News Digital, was that building a bomb is not currently being discussed. But he added a heavy caveat: "Iran's hand is open... Iran can take actions if has not taken until now." Israel's Channel 14 amplified these words on X.

Netanyahu addressed the issue during a speech at a ceremony marking the reinterment of Shimon and Rivka Herzl, grandparents of Theodor Herzl, founder of modern Zionism. "Today, we heard the commander of the Revolutionary Guards, Vahidi, explicitly declare Iran's intention to continue developing nuclear weapons, 'continue,' as he put it," Netanyahu said at the event. "Well, as prime minister of Israel, I too, am determined to continue, to continue preventing Iran from possessing nuclear weapons," he concluded.

President Donald Trump took a different tone in an interview released by Punchbowl News on Friday. He stated clearly that Iranians want a deal and do not want to be hit. "They want to make a deal. Look, it's obvious. They don't want to be hit. Ok? They want to make a deal. So we will see," Trump said. This follows his comments Thursday at the White House where he claimed personal involvement in negotiations with Iran to reopen the Strait of Hormuz. "I think we're doing very well," he noted. "I'm involved in the negotiation. I think we're doing fine. It could be. It could be soon."

Meanwhile, Saudi Arabia braces for possible coordinated attacks from Iranian allies. A report indicates that Iraqi militias in the north and Yemen's Houthis in the south are preparing strikes under IRGC direction. A senior Saudi official told Reuters that intelligence reports from Saudi Arabia, the U.S., and others show energy infrastructure, ports, and airports as potential targets. The official added that drones and missiles have been observed moving into position, suggesting a coordinated operation could be looming. Saudi Arabia is ready to respond to "any aggression," the official stated.

Diplomatic shifts continue amid rising tensions. Saudi Arabia, Turkey, and Pakistan signed a defense agreement on Friday. The pact stipulates that "any armed attack against any one of the three States shall be regarded as an attack against them all," according to Pakistan's foreign ministry. It is intended to strengthen collective deterrence against acts of aggression. This deal arrives just as Iran has attacked Saudi Arabia during Operation Epic Fury. In late July, Saudi Arabia also joined the U.S., signaling a deeper alignment in response to Iranian threats that ripple across the region.

Strikes targeting militias backed by Iran have erupted across Iraq. This pact was hammered out in Mecca, Saudi Arabia, where Crown Prince Mohammed bin Salman met with Turkish President Recep Tayyip Erdogan and Pakistan's Prime Minister Shehbaz Sharif. The three leaders formalized an agreement to coordinate security efforts against these armed groups.

Sharif has moved into a central role as a mediator between the United States and Iran, pushing for talks that could finally end the war. Yet even as diplomats work toward reopening the Strait of Hormuz, one expert warns that Tehran's deeper ambitions stay fixed in place. Nazee Moinian, an adjunct fellow at the Middle East Institute, told Fox News that Iran's revolutionary government sees reducing American influence as a non-negotiable ideological goal. Short-term diplomatic wins or losses do not shift this core belief.

"It is a revolutionary state," Moinian said. "It is committed to deflect, diminish, and eventually destroy American power and influence in the region and around the world." She argued that Iran's leaders operate with a long-term horizon on their conflict with Washington. They view the struggle not as a temporary dispute but as an ideological war.

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