U.S. President Donald Trump stated on Tuesday that there were no ongoing discussions with Iran and emphasized that the Strait of Hormuz was open, contradicting Iran’s claim that the vital water passage was closed to shipping. The fading hopes for a resolution to the nearly six-month conflict led to a rise in oil prices, while stock markets declined, and borrowing costs for major economies, including the U.S., reached multi-decade highs.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official disclosed to Reuters that Iran was transitioning to a “fully offensive” military stance due to the diplomatic deadlock, although there were no fresh attacks reported by either side on Tuesday.
In a post on Truth Social, Trump affirmed, “There are no talks or conversations happening, or scheduled, with the Islamic Republic of Iran.” He added, “The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated.”
Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, suggesting that talks with Iran were still ongoing and were possibly more extensive than ever before. The conflict, which commenced with joint U.S.-Israeli strikes on Iran, has now evolved into a stalemate, with Iran persisting in threatening shipping in the strait and Washington warning of potential renewed attacks if negotiations fail to produce a lasting settlement.
One of the primary U.S. objectives is to prevent Iran from obtaining a nuclear weapon. However, experts argue that achieving this goal will be challenging without addressing the enriched uranium believed to be hidden at sites previously targeted by the U.S. military.
Despite Trump’s claims of improvements in the Gulf region, reports from various countries continued to highlight efforts to disrupt shipping. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, marking the first such incident since an attack on the Fujairah port in May. The UAE Foreign Ministry announced the suspension of all trade activities with Iran due to regional tensions undermining peace and security.
The United Kingdom Maritime Trade Operations received a report on Tuesday of a vessel being hit by an unknown projectile while transiting the Strait of Hormuz, resulting in engine room damage and a crew member injury. The Omani Coast Guard provided assistance to the affected crew, and Tehran did not immediately comment on the incident.
Iranian negotiator Mohammad Baqer Qalibaf affirmed that the strait would remain closed until the U.S. met the conditions outlined in an interim deal signed with Iran in June. These conditions include lifting the blockade of Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military actions.
The period specified in the June agreement for a broader deal on Iran’s nuclear program and U.S. sanctions expired on Monday. Trump indicated no intention to extend the agreement. The conflict over control of the Strait of Hormuz, a critical waterway for global oil and gas transit, led to the unraveling of the initial agreement.
Iran reiterated its willingness to engage in dialogue with the U.S., emphasizing that negotiations should not be perceived as capitulation. Iranian leadership remains resolute in defending the country’s security and dignity while expressing a commitment to peace.
As the conflict persists, Iranian officials are concerned that further economic sanctions could exacerbate hardships, spark unrest, and challenge the legitimacy of the Islamic Republic. The conflict has resulted in numerous casualties, primarily in Iran and Lebanon, with Iran conducting attacks on U.S. military installations and infrastructure in various countries.
Benchmark Brent crude oil futures have seen significant spikes during the conflict, reaching $126 US a barrel at one point, a 75% increase from pre-war levels. Brent crude futures closed slightly up on Tuesday at just over $91 US a barrel, amid warnings from U.S. officials about potential additional economic measures against Iran in the coming months.
