US-Iran tensions center on an eight-month conflict that escalated after a short-lived June 2026 memorandum of understanding collapsed, with both sides exchanging limited strikes and maintaining naval pressures around the Strait of Hormuz. As of early November 2026, Qatar-led mediators are advancing revised proposals for a rapid Hormuz reopening in exchange for US sanctions relief, asset releases, blockade lifts, and an end to regional fighting including in Lebanon. US officials describe recent defensive strikes on Iranian targets as limited and not a return to major operations, while President Trump and Vice President Vance have signaled openness to a negotiated settlement. Iranian officials, however, state that gaps remain wide, their core demands must be met first, and feedback on latest drafts is still pending. Midterm elections have passed without immediate escalation, leaving traders focused on whether diplomacy can stabilize the situation or whether renewed strikes will follow.