President Donald Trump stated on Tuesday that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz was open, countering Iran’s claim that the waterway remained closed to shipping. The diminishing hopes of reaching a resolution to the nearly six-month conflict caused oil prices to rise once more on Tuesday, leading to stock market declines and increased borrowing costs for major economies, including the U.S.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official revealed that Iran was transitioning to a “fully offensive” military stance due to the diplomatic deadlock. However, there were no new reports of attacks from either side on Tuesday.
Trump announced on Truth Social that there were no current or planned talks with Iran, reiterating the enforcement of a Naval Blockade and the operational state of the Hormuz Strait. Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, suggesting that discussions with Iran were more robust than ever.
The conflict, initiated by joint U.S.-Israeli strikes on Iran, has evolved into a stalemate, with Iran threatening shipping in the strait and the U.S. warning of potential renewed attacks if negotiations fail to yield 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 hidden at previously targeted sites.
Despite Trump’s claims of improvements in the Gulf region, reports of attempts to disrupt shipping persisted. The United Arab Emirates disclosed detecting two ballistic missiles launched from Iran, marking the first such incident since an earlier strike in May. The UAE’s Defence Ministry indicated that the missiles were aimed at maritime traffic and landed in the sea. In response, the UAE suspended trade activities with Iran, citing escalating regional tensions that undermine peace and security.
The United Kingdom Maritime Trade Operations reported an incident on Tuesday where a vessel transiting the Strait of Hormuz was hit by an unidentified projectile, resulting in engine room damage and casualties among the crew. The Omani Coast Guard provided assistance to the affected crew, with no immediate response from Tehran.
Iran’s top negotiator, Mohammad Baqer Qalibaf, stated that the strait would remain closed until the U.S. met the conditions outlined in an interim deal signed in June. These conditions include lifting the blockade on Iranian ports, ending oil sanctions, releasing frozen assets, and ceasing threats and military operations. The agreement, which aimed for the termination of military activities on all fronts, collapsed due to disputes over control of the Strait of Hormuz.
Iran remains open to dialogue with the U.S., emphasizing that negotiations do not equate to surrender. Iranian officials underscored their resilience in the face of economic hardships and potential unrest resulting from increased punitive measures. The conflict has led to significant casualties, with Iran conducting attacks on various U.S. military installations and infrastructure in the region.
Oil prices have surged during the conflict, reaching $126 per barrel at its peak, a substantial increase from prewar levels. Despite settling slightly lower on Tuesday, Brent crude oil futures remain elevated. U.S. officials warned of further economic sanctions on Iran in the coming months, signaling a potential escalation in pressure on the country.