Mike Baker

Trump went further, though, accusing Iran of what he described as a, quote, short-term extortion of the world by restricting access to international waterways and claiming the regime has, quote, no cards beyond that leverage.

Additionally, Trump told the New York Post on Friday that U.S.

warships are currently being reloaded with munitions and are ready to resume strikes if the talks in Pakistan fail.

Now, despite the escalating tensions, the ceasefire, well, in name only, is still holding.

There are reports that since supposedly agreeing to the deal, Iran has continued launching missiles and drones at regional targets, including hitting key sites in Kuwait over the past 48 hours,

such as the Al Uldari base in Kuwait and the Kuwait Oil Corporation refinery.

And as we've been tracking on the PDB, Iran continues to maintain a near-total blockade of the strait, disrupting global energy flows in a corridor that typically carries roughly 20% of the world's oil supply.

There are also reports, first cited by the New York Times, suggesting Iranian officials have discussed imposing fees of up to $2 million per transit, potentially as a way to fund reconstruction after recent strikes.

It's likely that some of the tankers that have managed to pass through the strait with Iranian authorization over the past few weeks have, in fact, been paying the toll, or the ransom fee, or the extortion amount, however you want to refer to it.

Now, in the category of just when you think you've heard it all, President Trump did not entirely dismiss the concept of a toll or a fee for transiting the Strait earlier this week, telling reporters that he's entertaining the idea of a potential joint U.S.-Iran arrangement to manage the Strait, calling it a way to secure the route while making, quote, big money.

I'm not making that up.

But no surprise, maritime experts warn that introducing a toll system in a strategic choke point like Hormuz could set a dangerous precedent, raising questions about whether other critical waterways from the Taiwan Strait to the Strait of Gibraltar could face similar restrictions in the future.

Regardless, the president apparently had shifted his tone by Thursday afternoon, warning that if the reports are true, then Iran, quote, better stop now.

So perhaps he's shelved the big money concept.

All of this, as I mentioned, is unfolding just as U.S.

and Iranian officials prepare to sit down for direct talks in Islamabad.

As we laid out yesterday, Iran is entering those talks with a clear objective – maintain leverage, particularly over the Strait, while pushing for sanctions relief and preserving key elements of its nuclear program.

The U.S., meanwhile, is coming in with its own red lines, chief among them ensuring that Iran can't maintain a pathway to a nuclear weapon and restoring stability to global shipping routes.

But further complicating the talks, Iran threw a last-minute wrench into the peace negotiations on Friday afternoon, demanding that Iranian assets be unblocked and a ceasefire implemented in Lebanon before peace talks can proceed.

So, the Iranian regime, which has already declared victory in this conflict, is continuing to stick to its demands.