The military standoff between the United States and Iran in the Strait of Hormuz is becoming increasingly untenable, as both sides grapple with significant challenges. Recent exchanges of fire and the US's limited military success have failed to establish strategic dominance over Iran, which continues to control key shipping routes and threaten oil tankers. The collapse of President Donald Trump's Project Freedom, aimed at creating a safe zone for merchant shipping, reflects the complexities of the situation, particularly after Saudi Arabia refused US access to its airspace. Iran's military capabilities remain intact, with reports suggesting it retains 70% of its missiles and 75% of its launchers. Economic pressures are mounting in Iran, with rising inflation and unemployment, as the US blockade continues to hinder its crude oil exports. The geopolitical implications are significant, with global oil prices affected and regional stability at risk. As both nations face internal and external pressures, the potential for escalation remains high, creating an unstable environment in the Middle East.