US President Donald Trump said on Tuesday that no talks were taking place with Iran, while insisting that the Strait of Hormuz remained open, contradicting Tehran’s claim that the key waterway was still closed to shipping.
The lack of progress towards an agreement to end the nearly six-month conflict pushed oil prices higher on Tuesday. Stock markets also fell as borrowing costs for major economies, including the US, reached multi-decade highs.
A temporary ceasefire expired on Monday. A senior Iranian official told Reuters that Iran was moving to a “fully offensive” military posture because of the diplomatic stalemate. There were, however, no reports of fresh strikes by either side on Tuesday.
“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” Trump said in a post on Truth Social.
“The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated,” he added.
On Monday, Trump’s son-in-law and special envoy Jared Kushner had said talks with Iran were continuing and were “probably more robust” than they had ever been.
The conflict began with joint US-Israeli strikes on Iran and has since settled into a standoff. Iran continues to threaten shipping through the strait, while Washington has warned that it could resume attacks if negotiations fail to produce a long-term settlement.
One of Washington’s main objectives is to prevent Iran from acquiring a nuclear weapon. Experts say this could prove difficult without removing enriched uranium believed to be buried at sites previously targeted by the US military.
Shipping Disrupted
Despite Trump’s claim that conditions in the Gulf were improving, countries continued to report incidents affecting shipping.
The United Arab Emirates’ Defence Ministry said it detected two ballistic missiles launched from Iran. It was the first such incident reported since a May 4 strike on Fujairah port.
The ministry later said the missiles were assessed to have been targeting “maritime traffic”, according to a statement posted on X. It said both missiles fell into the sea.
Iranian Foreign Ministry spokesman Esmaeil Baghaei rejected the claim, describing the UAE’s “accusations” as “baseless.”
The UAE Foreign Ministry said it had suspended all trade activities, exchanges and financial transactions with Iran until further notice. It said regional instability was undermining regional and international peace and security.
Direct cargo shipping between the UAE and Iran had resumed in late June through Dubai’s Jebel Ali Port. The UAE had suspended direct shipping in early March, days after the war began.
The United Kingdom Maritime Trade Operations said it received a report on Tuesday that a vessel was struck by an unknown projectile while sailing through the Strait of Hormuz.
The incident caused damage to the engine room and resulted in one crew casualty.
The Omani Coast Guard was assisting the remaining crew, according to the report. Tehran had not immediately commented.
Preliminary shipping data showed that vessel crossings through the Strait of Hormuz remained in single digits on Monday.
Top Iranian negotiator Mohammad Baqer Qalibaf said the strait would remain closed until the US met conditions contained in an interim agreement signed with Iran in June.
The conditions include the US ending its blockade of Iranian ports, lifting oil sanctions, releasing Tehran’s frozen assets, and ending threats and military operations on all fronts, Qalibaf told parliament.
A memorandum of understanding signed on June 17 set a 60-day deadline for a broader agreement covering Iran’s nuclear programme and US sanctions. The deadline expired on Monday, while Trump said he had no plans to extend it.
The agreement called for the “immediate and permanent termination of military operations on all fronts”. It later broke down over a dispute about control of the Strait of Hormuz, a narrow waterway through which a fifth of global oil and liquefied natural gas flowed before the war.
Iran Says It Still Open To Talks
Iran remains open to dialogue with the US but does not view negotiations as surrender, Mohammad Mokhber, an adviser to Iran’s supreme leader, said on Tuesday, according to semi-official Fars news agency.
Mokhber said military pressure and sanctions would not change Iran’s position. He said the country would defend its security, dignity and allies while not seeking war.
Even as Iran projects resilience, its leaders are concerned that further economic pressure could increase hardship, trigger renewed unrest and weaken the Islamic Republic’s legitimacy, according to three Iranian officials.
Thousands of people have been killed in the conflict, mainly in Iran and Lebanon. Iran has also attacked US military bases and infrastructure in Oman, Jordan, Kuwait, Israel, the UAE and Saudi Arabia.
Benchmark Brent crude futures have risen sharply during the conflict, reaching $126 a barrel at their peak, about 75% above pre-war levels.
Brent crude futures settled 20 cents higher on Tuesday at just above $91 a barrel.
A US administration official repeated warnings that Washington could impose further pressure on Iran’s economy following several rounds of sanctions.
“There are many levers the president can crank harder in the weeks and months ahead.”
Faridah Abdulkadiri
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