US President Donald Trump stated on Tuesday that no negotiations were underway or planned with Iran, asserting that the Strait of Hormuz remained open despite Iranian claims to the contrary. This contradicts Tehran’s earlier statement that the vital shipping route was still closed.
The diminishing chances of resolving the nearly six-month conflict pushed oil prices higher on Tuesday, while global stock markets declined and borrowing costs for major economies, including the US, reached multi-decade highs. These developments have raised concerns about the prolonged inflationary and fiscal consequences of the crisis.
A temporary ceasefire expired on Monday, and a senior Iranian official announced that Iran was shifting to a “fully offensive” military stance due to the diplomatic deadlock. However, no new attacks were reported from either side on Tuesday.
In a post on Truth Social, Trump emphasized, “There are no talks or conversations going on, 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.” This statement contrasts with remarks made on Monday by Jared Kushner, Trump’s son-in-law and special envoy, who expressed optimism about ongoing talks, describing them as “probably more robust” than ever before.
Despite Trump’s confident assertions, preliminary shipping data from Tuesday indicated that vessel crossings through the Strait of Hormuz remained extremely limited, with single-digit transits recorded on Monday. The United Kingdom Maritime Trade Operations reported that a ship was hit by an unidentified projectile while leaving the strait, resulting in engine room damage and a crew casualty. The Omani Coast Guard is assisting the remaining crew members.
Iran’s chief negotiator, Mohammad Baqer Qalibaf, stated in comments published by state media that the strait would stay closed until the US fulfilled the terms of an interim agreement signed in June. These conditions include lifting the blockade of Iranian ports, removing oil sanctions, releasing frozen Iranian assets, and ceasing threats and military actions on all fronts, Qalibaf told parliament.
The memorandum of understanding, signed on June 17, set a 60-day deadline for a broader agreement on Iran’s nuclear program and US sanctions. That deadline passed on Monday, with Trump declaring no intention to extend it. The deal, which called for the “immediate and permanent termination of military operations on all fronts,” quickly unraveled over disputes concerning control of the Strait of Hormuz, a narrow passage responsible for transporting one-fifth of the world’s oil and liquefied natural gas before the conflict.
In a significant development, Iran reiterated its willingness to engage in dialogue with the US but clarified that negotiations should not be mistaken for capitulation. Mohammad Mokhber, an adviser to Iran’s supreme leader, stated that military pressure and sanctions would not weaken Iran’s determination. He affirmed the country’s commitment to defending its security, dignity, and allies without seeking war.
While Iran projects strength amid the conflict, its leadership is concerned that further economic sanctions could exacerbate hardships, spark renewed unrest, and undermine the Islamic Republic’s legitimacy, Iranian officials. The conflict has resulted in thousands of deaths, primarily in Iran and Lebanon, with Iran targeting US military bases and infrastructure in Oman, Jordan, Kuwait, Israel, the United Arab Emirates, and Saudi Arabia.
Benchmark Brent crude oil futures have surged during the conflict, peaking at $126 per barrel—approximately 75% higher than pre-war prices. On Tuesday, Brent crude futures closed up 20 cents at just over $91 per barrel. For American voters ahead of the November congressional elections, gasoline prices have risen above $4 per gallon, up from under $3 before the conflict, the automotive group AAA.
