[Video below.] Former Defense Secretary Mark Esper warned Sunday that Iran has become increasingly confident in its confrontation with the United States, arguing that Tehran no longer feels compelled to respond to President Trump’s military threats and instead believes it holds the advantage as negotiations continue.

Appearing on ABC News’ “This Week,” Esper said Iranian leaders have adjusted their strategy after watching President Trump repeatedly stop short of carrying out major military action against Tehran.

“Clearly the Iranians have figured this out. They are not reacting to these threats, and they are taking very strategic positions with regard to this. And so, you saw them over the last week put forward again this Omani plan that they’re going to unveil at some point,” Esper said.

“But these demands they’ve now raised last night show that they are emboldened, that they feel confident about their position in the world. And at the same time, they are flexing their muscles by using their proxies,” he added.

Esper pointed to Iran’s efforts to tighten its grip over the Strait of Hormuz by relying on the Houthis in Yemen to threaten commercial shipping in the Red Sea, saying the campaign demonstrates Tehran’s willingness to expand pressure on global energy routes.

“We know that the Houthis just this morning attacked a Saudi refinery on the Red Sea. Yesterday, Iran attacked a UAE ship. But they’ve also — they being Tehran — have tried to expand this conflict,” Esper said.

“There was a long shot taken at an Egyptian port on the Mediterranean Sea to show the range of their weapons. And they’ve gone so far as to threaten a U.S. ally, NATO ally, Bulgaria, about supporting U.S. operations from there. So they’re expanding the conflict in many ways,” he added.

The growing tensions come as fighting between Hezbollah and Israel continues in Lebanon, further complicating international efforts to restore a broader regional ceasefire.

Despite the escalating hostilities, President Trump has continued expressing optimism that an agreement with Iran remains within reach, including a possible arrangement that would fully reopen the Strait of Hormuz, through which roughly one-fifth of the world’s oil shipments normally pass.

“It could happen. Tomorrow or the next day,” Trump said Tuesday after traveling to Los Angeles for a Republican National Committee fundraising event. “A lot of progress has been made.”

Iran, however, has largely dismissed that characterization, insisting it is instead pursuing an arrangement with Oman governing commercial traffic through the strait without American involvement. Iranian officials have also indicated that vessels using the waterway would be required to pay tolls.

At the same time, Tehran has submitted a list of conditions that it says must be met before the Strait of Hormuz would be fully reopened to international shipping.

Esper dismissed those demands as entirely unacceptable.

Esper said the demands are “ridiculous” and should be “rejected out of hand.”

“Demands such as the withdrawal of all U.S. forces from the region, reimbursement for the cost of the war, the fact that … we would end our blockade, we would end sanctions. So, it’s gone beyond the pale,” he told host Jonathan Karl.

Esper concluded that Iran’s sweeping demands reveal not only its unwillingness to compromise but also its belief that it now holds the upper hand.

“But what it tells you is two things, Jonathan. First of all, they haven’t apparently left any room for negotiation, and we know that’s important. President Trump wants to pursue that, and rightly so. But secondly and more importantly, it shows that they believe they have the upper hand, they believe they’re winning, and they are emboldened,” he added.

{Matzav.com}