Mohsen Rezaei, a senior adviser to Iran's Supreme Leader Ayatollah Ali Khamenei, said the era of war or negotiations is over.

The statement signals a significant hardening of Tehran's diplomatic posture as nuclear negotiations with the U.S. have reached a standstill. By framing the release of frozen funds as a prerequisite for stability, Iran is shifting from a diplomatic framework to one of economic and military leverage.

Rezaei issued the warning from Tehran, where he said that Iran would expand the war if hostilities resume [1]. This shift in rhetoric comes as the Iranian government seeks the return of $24 billion [2] in frozen assets. Rezaei said the release of these funds is a "test of trust" for the U.S. [2].

The demand for the $24 billion [2] comes amid a broader breakdown in communication between the two nations. According to reports from Geo News, the Iranian leadership is no longer viewing traditional negotiations as a viable path forward [1].

Rezaei said, "The era of war or negotiations is over" [1]. The adviser's comments suggest that the Iranian leadership may now prioritize military readiness and economic demands over the diplomatic agreements that previously defined U.S.-Iran relations.

The threat to expand the conflict remains a central pillar of this new stance. Tehran has linked the potential for further escalation directly to the outcome of the asset dispute, and the current stalemate in nuclear talks [2].

"The era of war or negotiations is over"

This shift in rhetoric indicates that Iran is moving away from the diplomatic norms of the Joint Comprehensive Plan of Action (JCPOA) era. By linking the release of $24 billion in assets to a 'test of trust,' Tehran is attempting to force a tangible economic concession from the U.S. before any further nuclear discussions occur. The threat to expand the war suggests that Iran may use regional proxies or direct military action as leverage to secure these funds.