U.S. President Donald Trump declared that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz was operational, countering Iran’s claim of the waterway being closed. The fading hopes of reaching a resolution to the nearly six-month conflict led to a rise in oil prices, a decline in stock markets, and increased borrowing costs for major economies like the U.S.
After a temporary ceasefire agreement lapsed on Monday, a senior Iranian official mentioned a shift to a “fully offensive” military stance due to the diplomatic impasse. However, no new attacks were reported by either side on Tuesday. Trump clarified on Truth Social that there were no current or scheduled talks with Iran, emphasizing the continuance of the Naval Blockade and the removal of water mines in the Strait of Hormuz.
Jared Kushner, Trump’s son-in-law and special envoy, had previously expressed optimism about the ongoing talks with Iran, highlighting their robust nature. The conflict, initiated by joint U.S.-Israeli strikes on Iran, has now reached a stalemate, with Iran threatening shipping in the strait and the U.S. warning of potential renewed attacks if negotiations fail to produce a lasting settlement.
One of the primary U.S. objectives is to prevent Iran from obtaining a nuclear weapon, a challenging task that experts believe requires addressing the enriched uranium reportedly buried at previously targeted sites. Despite Trump’s positive outlook on the Gulf situation, reports of attempted disruptions in shipping persisted among various countries.
The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, targeting maritime traffic, with both missiles ultimately landing in the sea. This incident, following a previous strike in May, led the UAE to suspend trade activities, exchanges, and financial transactions with Iran, citing regional escalation undermining peace and security.
Additionally, the United Kingdom Maritime Trade Operations received a report of a vessel being struck by an unknown projectile in the Strait of Hormuz, causing engine room damage and casualties among the crew. The Omani Coast Guard provided assistance to the affected crew members. Iranian negotiator Mohammad Baqer Qalibaf affirmed that the strait would remain closed until the U.S. fulfilled the conditions of an interim deal signed in June.
Despite the standoff, Iran expressed openness to dialogue with the U.S., emphasizing that negotiations should not be misconstrued as surrender. The conflict’s toll includes thousands of casualties, with Iran conducting military actions in several countries. Oil prices have soared during the conflict, with Brent crude futures settling slightly above $91 US a barrel. Amid ongoing tensions, a U.S. official hinted at the possibility of further economic sanctions on Iran in the future.