Despite ongoing US and Israeli strikes on Iranian targets since late February 2026, including leadership and nuclear sites, the United States has conducted military operations without a congressional declaration of war. Recent developments center on fragile diplomacy through intermediaries, with talks resuming in early August focused on reopening the Strait of Hormuz, nuclear limits, and lifting blockades after multiple failed ceasefires. Constitutional authority rests solely with Congress, which has not acted, while the administration emphasizes executive-led de-escalation and sanctions relief tied to verifiable Iranian concessions. Trader consensus reflects historical precedent of avoiding formal declarations amid active but contained hostilities and shifting diplomatic signals that could still alter the trajectory before year-end deadlines.