The U.S. and Israel launched extensive airstrikes against Iran starting in late February 2026 under Operation Epic Fury, targeting military infrastructure and leadership, but operations have remained limited to air, missile, and naval actions rather than ground-force commitments. Ongoing hostilities center on control of the Strait of Hormuz, with repeated Iranian attacks on shipping prompting U.S. strikes and a naval blockade, followed by a June memorandum of understanding that collapsed amid renewed clashes in July. As of mid-August, talks mediated by Oman continue toward a potential deal to restore shipping access, while President Trump has publicly pressed for negotiations and criticized allies for nonparticipation. Traders appear to view the high costs of sustained air operations, absence of announced ground-invasion plans, and active diplomatic channels as significant barriers to a full-scale U.S. invasion of Iranian territory before the 2027 deadline.