Trump Weighs Restarting Iran Operations as Ceasefire Frays

U.S. President Donald Trump is more seriously considering restarting combat operations against Iran as a fragile ceasefire comes under strain, people close to the administration said Tuesday, May 12, 2026. Trump has described the ceasefire as being on “massive life support” after Iran rejected a U.S. counterproposal to end hostilities. Sources said a major decision on how to proceed is unlikely before Trump departs for China later Tuesday.

The possibility of renewed U.S. military action comes as Washington continues to tighten economic pressure on Tehran. The U.S. Treasury Department blacklisted 12 individuals and entities over their alleged role in facilitating the sale and shipment of Iranian oil to China, officials said.

Energy markets have also been on alert over the risk of disruption through the Strait of Hormuz. The United States released 53.3 million barrels of oil from the Strategic Petroleum Reserve to energy firms, described as part of a global effort to stabilize oil prices amid concerns that a closure of the strait could prevent the oil market from normalizing this year.

The conflict with Iran has incurred an estimated cost of $29 billion to date, the article said.

Treasury sanctions focus on Iranian oil shipments to China

The new Treasury action targeted 12 individuals and entities accused of helping move Iranian oil into China, according to officials. The move came as the administration weighed next steps on the ceasefire and the broader conflict.

The sanctions and the oil release underscored how the Iran conflict has spilled into economic policy, with Washington attempting to contain both supply risks and price volatility tied to the Strait of Hormuz.

China floated as a potential mediator as Trump travels

Iran’s ambassador to China, Rahmani Fazli, said Beijing could serve as a mediator between Washington and Tehran. He said China views the crisis as an opportunity to contain war and prevent a collapse of regional security, while warning mediation should not be used as a tool to manage pressure against Iran.

Fazli also said Iran’s security measures in the Strait of Hormuz are defensive.

Defense Secretary Pete Hegseth confirmed he would accompany Trump to China and said the president would make decisions related to the conflict during the trip.

Officials and markets will be watching whether the ceasefire holds during Trump’s visit and whether additional military, diplomatic, or economic steps follow.