U.S. President Donald Trump announced on Tuesday that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz was operational, contradicting Iran’s claim that the crucial waterway remained closed to shipping.
The fading hopes of reaching a resolution to the nearly six-month conflict led to a rise in oil prices on Tuesday, while stock markets declined and borrowing costs for major economies, including the U.S., reached multi-decade highs. This was due to concerns about the long-term effects of the crisis on inflation and fiscal conditions.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official stated that Iran was shifting to a “fully offensive” military stance due to the diplomatic deadlock. However, there were no reports of fresh attacks from either side on Tuesday.
In a post on Truth Social, Trump stated, “There are no talks or conversations taking place, or scheduled, with the Islamic Republic of Iran.” He also emphasized the continued implementation of the naval blockade and the functioning of the Hormuz Strait, stating that all water mines had been cleared.
On a positive note, Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, mentioning that talks with Iran were still ongoing and were possibly more substantial than ever before.
Despite Trump’s optimism about the situation in the Gulf improving, reports continued to emerge of attempts to disrupt shipping. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, targeting maritime traffic. However, Iran’s foreign ministry spokesperson rejected these accusations as baseless.
Moreover, a vessel transiting through the Strait of Hormuz reported being struck by an unknown projectile on Tuesday, causing damage to the engine room and injuring a crew member. The remaining crew was being assisted by the Omani Coast Guard, with no immediate response from Tehran.
Iran’s top negotiator, Mohammad Baqer Qalibaf, stated that the strait would remain closed until the U.S. fulfilled the conditions outlined in an interim deal signed in June. These conditions included lifting the blockade of Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military actions on all fronts.
As the conflict persists, Iran remains open to dialogue with the U.S. but emphasizes that negotiations should not be mistaken for surrender, according to Mohammad Mokhber, an adviser to Iran’s supreme leader. The ongoing economic pressure and sanctions are not expected to weaken Iran’s resolve in defending its security and dignity while avoiding war.
The conflict has resulted in thousands of casualties, with Iran conducting bombings on U.S. military installations and infrastructure in various countries. Brent crude oil futures have surged during the conflict, reaching $126 US a barrel at its peak, a significant increase from prewar levels. Amid warnings of potential further economic sanctions on Iran, benchmark Brent crude futures settled slightly higher on Tuesday.