War Secretary Pete Hegseth says the ceasefire with Iran still holds despite recent exchanges, warning the U.S. will "defend aggressively" and urging Tehran to avoid escalation.

A fragile ceasefire between the U.S. and Iran is holding despite continued attacks, as President Donald Trump announced a pause in naval escort operations to allow negotiations to continue — while warning that failure to reach a deal would result in a significantly escalated bombing campaign.

Trump said the pause in Project Freedom — the U.S. mission to guide commercial vessels through the Strait of Hormuz — is intended to give negotiators time to finalize what he described as a potential "complete and final agreement" with Iran, while maintaining that the U.S. naval blockade would remain in place.

Trump suggested in a social media post Wednesday morning the conflict could soon come to an end if Iran agrees to the terms under discussion, but warned that if it does not, U.S. forces would resume bombing at a significantly higher level and intensity.

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"Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran," Trump wrote Wednesday morning. "If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before."

"We prefer this to be a peaceful operation, but are locked and loaded to defend our people, our ships, our aircraft, and this mission without hesitation," War Secretary Pete Hegseth said Tuesday. 

Even as negotiations advance, Iran has continued attacks on commercial vessels and U.S. forces, which officials say remain "below the threshold" of restarting major combat operations.

Since the start of the ceasefire on April 7, Iran has fired at commercial vessels nine times and attacked U.S. forces more than 10 times, "all below the threshold of restarting major combat operations," according to Chairman of the Joint Chiefs of Staff Gen. Dan Caine. 

"No, the ceasefire is not over. Ultimately, this is a separate and distinct project," Hegseth told reporters Tuesday. "We’re not looking for a fight."

Secretary Pete Hegseth holds a briefing on the Iran war at the Pentagon on May 5, 2026. (Kevin Lamarque/Reuters)

But administration officials have not defined what level of escalation would constitute a violation of the ceasefire, even as attacks continue across the region.

Asked what level of firing would violate the ceasefire, Trump told reporters Tuesday: "You’ll find out." 

"They know what to do, and they know what not to do," Trump went on. "They fired from little boats with peashooters… You know why? Because they don't have any boats anymore. Their Navy is comprised of, they call them little boats, right? Boats and they're fast. Yeah. They're so fast that, that they had eight of them and they're all gone, and they're fast, but they're not fast like a missile. A missile is slightly faster."

U.S. forces already have engaged Iranian assets directly. In recent days, American helicopters sank at least six Iranian fast-attack boats targeting commercial vessels in the Strait of Hormuz, according to U.S. Central Command.

The latest exchanges are a far cry from the early days of the war, when U.S. forces were striking targets across Iran — from bridges and infrastructure near Tehran to a massive bombardment of Kharg Island.

The ceasefire initially was expected to include a gradual reopening of the Strait of Hormuz, a critical global shipping lane, but that has not materialized. Iran has continued to restrict access to the waterway, effectively maintaining a blockade even after the agreement took hold.

The U.S. military has been enforcing a naval blockade in the Strait of Hormuz, even during the ceasefire. (U.S. Central Command)

TRUMP ANNOUNCES 'PROJECT FREEDOM,' IRAN THREATENS ATTACKS, PAKISTAN ANNOUNCES US RELEASE OF SEIZED CARGO SHIP

In response, the U.S.-launched Project Freedom, a short-lived effort to direct stranded vessels through the strait, and has imposed its own restrictions on Iranian shipping, intercepting vessels and warning that ships entering or leaving Iranian ports could be turned back.

Iran, however, has accused the U.S. of violating the ceasefire, warning that any American interference in the strait is considered a breach of the agreement.

The violence has also extended beyond shipping lanes. 

The United Arab Emirates said its air defenses intercepted 12 ballistic missiles, three cruise missiles and four drones launched from Iran on Monday alone, resulting in injuries. Emirati officials say hundreds of missiles and drones have been intercepted since the start of the conflict, with civilian casualties reported.

Gen. Dan Caine, chairman of the Joint Chiefs of Staff, speaks during a news conference at the Pentagon on March 19, 2026. (Mandel Ngan/AFP)

The Strait of Hormuz handles roughly one-fifth of the world’s oil supply, and shipping companies remain hesitant to resume normal transit as attacks continue and insurance risks rise. Even with U.S. escorts, industry analysts say the current security environment is unlikely to restore regular traffic in the near term. 

So far, two U.S.-escorted commercial ships have successfully transited so far under Project Freedom.

The ceasefire began as a two-week deal to allow both sides more time to agree to a permanent end to the war. But negotiations dragged on to almost the one-month mark and Trump said Sunday he finds Iran’s latest proposal unsatisfactory.

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 "They want to make a deal, I'm not satisfied with it," he said. "They have not yet paid a big enough price for what they have done to humanity, and the world, over the last 47 years," he wrote on Truth Social Sunday. 

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