Iran’s Islamic Revolutionary Guard Corps (IRGC) has emerged as the dominant force in the country’s wartime leadership, reducing the role traditionally held by the supreme leader following the reported death of Ayatollah Ali Khamenei, Reuters reported Wednesday.

According to officials, analysts and sources familiar with internal deliberations, Iran is no longer operating under a single undisputed authority at the top of its political system, marking a major shift from the model that has defined the Islamic Republic since 1979.

Sources told Reuters that Mojtaba Khamenei, who was elevated after his father’s death, now serves more as a figure who endorses decisions rather than directing policy himself.

Real influence is said to rest with the IRGC, the Supreme National Security Council, and senior figures in the supreme leader’s office.

Reuters reported that wartime pressures have concentrated authority within a smaller hardline circle, with commanders shaping military strategy, diplomacy and domestic security policy.

Iran’s diplomatic engagement with Washington has reportedly been led by Foreign Minister Abbas Araqchi, while parliamentary speaker Mohammad Bagher Ghalibaf, a former Guards commander, has become an important link between political and military elites. On security matters, IRGC commander Ahmad Vahidi has been identified by sources as a key power broker.

Analysts told Reuters the shift reflects a broader transfer of power from clerical institutions to the security establishment. They said policy choices now appear centered on preserving leverage in the conflict, particularly over the Strait of Hormuz, while resisting Western pressure on nuclear and regional issues.

Despite ongoing military and economic pressure from the United States and Israel, Reuters reported there were no visible signs of major internal divisions or political collapse, suggesting the Guards and security services now firmly steer Iran’s wartime strategy.

Iran through Pakistani ​mediators gave the ‌U.S. a new proposal ​on ​reopening of the Strait ⁠of ​Hormuz and the ​ending of the war, with ​nuclear negotiations ​postponed for a ‌later ⁠stage, Axios reported on Sunday, citing ​a ​U.S. ⁠official and two ​sources with ​knowledge ⁠of the matter.

Meanwhile, U.S. President Donald Trump said on Sunday Iran could telephone if it wants to negotiate an end to their two-month war and stressed it ​can never have a nuclear weapon, after Tehran said the U.S. should remove obstacles to a deal, including its blockade of Iran’s ports, Reuters reported.

Hopes of reviving peace efforts receded on ‌Saturday when Trump scrapped a visit to Islamabad by his envoys Steve Witkoff and Jared Kushner. Iranian Foreign Minister Abbas Araqchi shuttled to and from mediators Pakistan and Oman on Sunday before heading to Russia, where he is due to meet President Vladimir Putin.

Oil prices rose, the dollar inched higher and U.S. stock futures wobbled lower in early Asia trade on Monday after the peace talks stalled, leaving Gulf shipping blocked.

“If they want to talk, they can come to us, or they can call us. You know, there is a telephone. We have nice, secure lines,” Trump told “The Sunday Briefing” on Fox News.

“They know what has to be in the agreement. It’s very simple: They cannot have a nuclear weapon, otherwise there’s no reason to meet,” Trump said.

Hopes of a diplomatic breakthrough in the U.S.-Israeli war with Iran receded as a new ‌week began, with talks aimed at ending the two-month conflict at a standstill and both Tehran and Washington showing little willingness to soften their terms.

Iranian Foreign Minister Abbas Araqchi left mediator Pakistan empty-handed at the weekend, and U.S. President Donald Trump canceled a planned visit ​to Islamabad by his envoys Steve Witkoff and Jared Kushner, dealing back-to-back blows to peace prospects, Reuters reported.

The deadlock ​leaves the world’s biggest economy and a major oil power locked in a confrontation that ⁠has already pushed energy prices to multi-year highs, stoked inflation and darkened global growth prospects.

Iranian President Masoud Pezeshkian told ​Pakistani Prime Minister Shehbaz Sharif by phone that Tehran would not enter “imposed negotiations” under threats or blockade, according to a ​statement from the Iranian government.

Pezeshkian said the United States should first remove “operational obstacles,” including its blockade on Iranian ports, before negotiators can lay any groundwork to resolve the conflict.

Araqchi described his visit to Pakistan as “very fruitful.” An Iranian diplomatic source in Islamabad said Tehran would ​not accept “maximalist demands” from the United States.

Trump told reporters in Florida that he scrapped the envoys’ visit because the talks ​involved too much travel and expense to consider an inadequate offer from the Iranians. After the diplomatic trip was called off, Iran “offered ‌a lot, ⁠but not enough,” Trump said.

On Truth Social, he wrote that there was “tremendous infighting and confusion” within Iran’s leadership.

“Nobody knows who is in charge, including them,” he posted. “Also, we have all the cards, they have none! If they want to talk, all they have to do is call!!!”

Pezeshkian said on Thursday that there were “no hardliners or moderates” in Tehran and ​that the country stood united ​behind its supreme leader. ⁠Iran’s top negotiator Mohammad Baqer Qalibaf and Araqchi echoed the message in recent days.

Adding to regional strains, Israeli Prime Minister Benjamin Netanyahu ordered his troops to attack Hezbollah targets in Lebanon, ​his office said, further testing a three-week ceasefire.

Tehran has largely closed the Strait of ​Hormuz, which normally ⁠carries one-fifth of global oil and liquefied natural gas shipments, while Washington blocks Iran’s oil exports.

White House press secretary Karoline Leavitt earlier said the U.S. had seen some progress from the Iranian side and that Vice President JD Vance was ready ⁠to travel ​to Pakistan. Vance led an unsuccessful first round of talks in ​Islamabad this month.

The U.S.-Iran conflict, in which a ceasefire is in force, began with U.S.-Israeli airstrikes on Iran on February 28. Iran has since struck ​Israel, U.S. bases and Gulf states.