According to an August 16 report by The Wall Street Journal, intercepted intelligence indicates that after signing a memorandum of understanding (MOU) with the United States, and due to the U.S. "breaching the agreement" which closed the negotiation window, hardline high-ranking Iranian officials have completed a strategic shift over the past two months, prioritizing military preparedness over negotiations. The Iranian Revolutionary Guard Corps has quietly dispatched advisors to allied militias in Yemen, Iraq, and Lebanon, expanded missile and drone production, and extended its battlefield to the Red Sea, alarming allied nations in the Gulf region. Concurrently, Iran's Supreme Leader Ali Khamenei recently conducted a large-scale personnel reshuffle within security and military agencies, placing hardline veterans in key positions. These deployments have had substantial impacts, including the Houthi rebels' announcement of a blockade of the Bab el-Mandeb Strait against Saudi shipping lanes, successful Iranian missile strikes on targets in Jordan and Kuwait, and hitting six Emirati vessels in the past two weeks, leading to a continuous rise in supply risks in global energy markets. This week, Iranian Foreign Ministry spokesperson Ismail Baghaei publicly stated that due to the U.S. violating the MOU, subsequent negotiations never commenced, and the 60-day negotiation period set in the memorandum has become completely meaningless. Iran has announced an agreement with Oman regarding navigation in the Strait of Hormuz, but the Iranian Foreign Minister explicitly stated that this is separate from reopening the strait to international shipping.