I know how to have squid work as a transparent proxy. You put it into transparent mode then use your router or IPTABLES to forward port 80 to the squid port. I would like to do the same for SSL. Every guide I see mentions setting up keys on the squid server. I do not want squid to actually decrypt the SSL traffic then establish a connection with the server, rather I would like squid to simply forward the SSL traffic as is. The only thing I would like to do is be able to check the SSL request for any offending IPs and drop the packets if the destination is one of them.
You don't need Squid for that. Just add "DROP" rules in your edge firewall for new outbound connections to TCP port 443 to the "offending IPs".