U.S. President Donald Trump stated on Tuesday that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz was operational, directly opposing Iran’s claim that the waterway was closed to shipping. Oil prices rose as hopes for a resolution to the six-month conflict dwindled, impacting stock markets and causing borrowing costs to reach multi-decade highs in major economies, with concerns about long-term inflationary effects.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official mentioned that Iran was transitioning to a “fully offensive” military stance due to the diplomatic impasse, although no new strikes were reported by either side on Tuesday. Trump posted on Truth Social, denying any talks or scheduled conversations with Iran and affirming the continuance of the Naval Blockade, while asserting that the Strait of Hormuz was functioning with all water mines either 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 active and potentially more substantial than before. The conflict, initiated by joint U.S.-Israeli strikes on Iran, has evolved into a standoff, with Iran threatening shipping in the strait and the U.S. indicating the possibility of resuming attacks if negotiations fail to reach a lasting resolution. One of the primary U.S. objectives is to prevent Iran from obtaining a nuclear weapon, a challenging task without addressing the enriched uranium believed to be hidden at previously targeted sites.
Despite Trump’s positive outlook on the Gulf situation, reports continued to emerge of attempts to disrupt shipping operations. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran targeting maritime traffic, following a similar incident in May. The UAE suspended all trade activities with Iran, citing escalating tensions that jeopardized regional and international peace and security.
The United Kingdom Maritime Trade Operations reported that a vessel transiting the Strait of Hormuz was struck by an unknown projectile on Tuesday, resulting in engine room damage and a crew member casualty. The Omani Coast Guard provided assistance to the remaining crew, with no immediate response from Tehran.
Iran’s top negotiator Mohammad Baqer Qalibaf asserted that the strait would remain closed until the U.S. met the conditions outlined in an interim deal signed in June, including lifting the blockade of Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military operations. The agreement, aiming for an immediate cessation of military activities, collapsed due to disagreements over control of the strategic waterway.
Iran expressed willingness to engage in dialogue with the U.S. without equating negotiations with surrender, emphasizing resilience against military pressure and sanctions while safeguarding its security, dignity, and alliances. The conflict has resulted in significant casualties, mostly in Iran and Lebanon, with Iran targeting U.S. military assets in various countries. Brent crude oil prices surged during the conflict, reaching $126 US a barrel at its highest, 75% above prewar levels, settling at over $91 US a barrel on Tuesday. U.S. officials warned of potential further economic sanctions on Iran in the coming months.