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, contradicting Iran’s claim that the crucial water passage was closed to maritime traffic. The diminishing likelihood of a resolution to the nearly six-month conflict led to a rise in oil prices, while global stock markets weakened and borrowing costs for major economies, including the U.S., reached historical highs, amid concerns about long-term inflationary effects.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official indicated that Iran was transitioning to a “fully offensive” military stance due to the diplomatic impasse. However, no new attacks were reported by either side on Tuesday. Trump emphasized in a post on Truth Social that there were no ongoing or scheduled talks with Iran, underscoring the enforcement of a naval blockade and the functioning of the Strait of Hormuz, with all water mines reportedly eliminated or neutralized.
Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, suggesting that discussions with Iran were still active and potentially more substantial than ever. The conflict, which initiated with joint U.S.-Israeli strikes on Iran, has evolved into a standoff, with Iran persisting in threatening shipping in the strait and the U.S. warning of possible renewed attacks in the absence of a long-term resolution. A key U.S. objective is to prevent Iran from obtaining a nuclear weapon, a challenging task considering the enriched uranium believed to be concealed at previously targeted sites.
Despite Trump’s assertion of improvements in the Gulf situation, reports surfaced of continued attempts to disrupt shipping activities. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, marking the first incident since the attack on the Fujairah port on May 4. The UAE stated that the missiles were intended for “maritime traffic,” with both projectiles landing in the sea. Iran’s rejection of these claims led the UAE to suspend all trade, exchanges, and financial dealings with Iran, citing regional tensions jeopardizing international peace and security.
Moreover, the United Kingdom Maritime Trade Operations received a report on Tuesday regarding a vessel struck by an unidentified projectile while transiting the Strait of Hormuz, resulting in engine room damage and casualties among the crew. The Omani Coast Guard was providing assistance to the affected crew, while Tehran had not issued an immediate response. Iranian negotiator Mohammad Baqer Qalibaf emphasized that the strait would remain closed until the U.S. fulfilled the conditions outlined in an interim deal signed in June, including lifting the blockade on Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military operations.
As the conflict persists, Iran remains open to dialogue with the U.S., emphasizing that negotiations should not be equated with surrender. Iranian officials express concerns that further economic repercussions could exacerbate hardships, fuel unrest, and undermine the legitimacy of the Islamic Republic. The conflict has resulted in significant casualties, primarily in Iran and Lebanon, with Iran conducting airstrikes on U.S. military installations and infrastructure across various countries. Benchmark Brent crude oil futures have surged during the conflict, reaching $126 US a barrel at its peak, representing a 75% increase from prewar levels. Brent crude futures settled slightly higher on Tuesday at just over $91 US a barrel, while a U.S. administration official hinted at the possibility of additional economic sanctions on Iran in the future.