The article reports that peace between Iran and the U.S. remains elusive despite recent market optimism from Trump administration officials discussing a peace process involving the U.S., Iran, and Gulf states. Equities, Treasury debt securities, and crude oil rallied following a weak Bureau of Labor Statistics jobs report for July. Front-month WTI crude traded with a $75 handle less than a week ago and an $84 handle this morning. On Monday, Pres. Donald Trump signaled he was ready to let Iran’s economy collapse rather than launch fresh military strikes to force open the Strait of Hormuz, a shift from threatening increased U.S. strikes. Much of Iran’s industrial capacity has been destroyed, the U.S. Navy is preventing Iranian crude from reaching external ports, and economists estimate consumer-level inflation in Iran at roughly 77%. Iran’s currency has fallen 10% in value versus the U.S. dollar since the start of the war. Iran can still launch drone and missile strikes and work likely continues on its nuclear weapons program. Iran refuses to accept military defeat and has hardened demands, including the U.S. lifting its naval blockade, releasing frozen assets, and paying compensation for war damages, while attacks on its proxies in Lebanon, Iraq, Yemen, and Gaza be permanently terminated. Pres. Trump responded on social media demanding compensation from Iran for people killed and wounded by roadside bombs and conflicts.