President Donald Trump has U-turned on his threat to charge cargo ships transiting the Strait of Hormuz as much as 20% - but the US and Iran have continued trading strikes as Trump has told the US Congress that war has resumed.
So, can the US gain the upper hand? Will more US bombs and bullets really help? And has this whole episode proven that the memorandum of understanding, which was meant to end the conflict, was destined to fail.
In this episode of The Fourcast Indicators, presenter Krishnan Guru-Murthy and Defence and Intelligence Analyst, Mark Urban are joined by former US Navy Rear Admiral Mark Montgomery, who is now a senior fellow at The Foundation for Defence of Democracies.
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