The United States and Iran have both declared that their ceasefire extension and the memorandum of understanding signed in June are no longer valid, signaling a renewed escalation in hostilities. Pakistan, acting as the main mediator, has urged both nations to halt attacks and return to dialogue, emphasizing diplomacy as the only path to lasting peace. Public statements from leaders on both sides suggest no urgency to reach a new agreement.

Iran’s economy remains under severe strain from decades of US sanctions, which have sharply reduced oil exports and GDP. Its military infrastructure has also suffered heavy damage from US-Israeli strikes, depleting missile and drone stockpiles. Meanwhile, the US faces rising oil prices, domestic discontent, and concerns over weapons shortages ahead of midterm elections. Analysts note that both nations are struggling to sustain the conflict.

Experts cited in the report argue that Iran views the war as existential and will not compromise without security guarantees, while the US risks strategic fatigue. The prolonged conflict is proving costly and unsustainable for both sides.