It passes Iran the initiative. Since the beginning of this war the onus has been on America and Israel to apply pressure and make Iran sue for peace. In terms of controlling the ground, the mass and structure of Iran's forces are nearly the same as when they started. There was no assistance from the Kurds, there was no coordinated multilateral assault with America's allies, nothing happened. Iran can regenerate their proxies and seek assistance while stringing America and Israel along on a proposal they won't sign.

From a strategic perspective America needs to deprive Iran of their allies. If they are serious about fighting this war, a line has to be drawn with Russia and China that prevents them from providing world-class reconnaissance. China particularly has to be economically sanctioned for their assistance, but the US Navy let them sail their tankers right through the Strait without a single PLAN vessel nearby. Opening the strait weakens Russia's (already battered) share of oil exports while rewarding China for supporting Iran and condemning the US. It's stupid.

From where I'm standing, last week would have been a great time for a Shock and Awe campaign to finish this off and make it a tidy weekend war for the folks back home. But we saw none of that, instead America is ostensibly cutting it's losses and (reportedly!!!) entertaining the same 10-point plan that concedes Iran's nuclear program and missile program to them.