Ongoing US-Iran hostilities, which began with strikes in February 2026 and escalated into exchanges over the Strait of Hormuz, continue without a congressional declaration of war. Recent mediated talks at the UN General Assembly in September produced an Iranian proposal for a quick ceasefire and Hormuz reopening in exchange for sanctions relief, which President Trump rejected while signaling possible additional strikes before the November midterms and openness to further indirect negotiations this week. Economic strain on Iran, including currency weakness and disrupted oil flows, has prompted Tehran to emphasize readiness for either resumed diplomacy or conflict, with both sides citing nuclear issues and shipping access as core sticking points. Trader sentiment reflects the war-of-attrition pattern, active mediation, and midterm timeline as key variables that could influence any formal war declaration.