U.S. President Donald Trump stated on Tuesday that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz was open, contradicting Iran’s claim that the crucial waterway remained closed to shipping.
The diminishing chances of reaching a resolution to the nearly six-month conflict led to a rise in oil prices, while stock markets declined and borrowing costs for major economies, including the U.S., reached multi-decade highs. Concerns lingered about the long-term impacts on inflation and fiscal matters due to the crisis.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official disclosed that Iran was transitioning to a “fully offensive” military stance due to the diplomatic deadlock. However, there were no reports of new attacks from either side on Tuesday.
In a post on Truth Social, Trump emphasized, “There are no talks or conversations currently happening, or planned, with the Islamic Republic of Iran.” He also confirmed the full enforcement of the Naval Blockade and the operational status of the Hormuz Strait, stating that all water mines had been eliminated or detonated.
Jared Kushner, Trump’s son-in-law and special envoy, expressed optimism on Monday, suggesting that discussions with Iran were still ongoing and possibly more robust than before.
The conflict, which commenced with joint U.S.-Israeli strikes on Iran, has now reached a stalemate, with Iran continuing to pose threats to shipping in the strait and the U.S. warning of potential renewed attacks if negotiations fail to produce a lasting resolution.
One of the primary U.S. objectives is to prevent Iran from obtaining a nuclear weapon. Nonetheless, experts believe achieving this goal will be challenging without addressing the enriched uranium suspected to be stored at previously targeted Iranian sites.
Despite Trump’s positive assessment of the situation in the Gulf, reports of attempts to disrupt shipping persisted among countries. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, marking the first such incident since a previous strike on the Fujairah port.
The UAE announced a suspension of all trade interactions with Iran, citing escalating regional tensions that jeopardize both regional and international peace and security. Direct cargo shipping between the UAE and Iran, which had resumed in late June, was suspended once again following the outbreak of the conflict.
Further incidents were reported when a vessel transiting the Strait of Hormuz was struck by an unknown projectile, causing damage to the engine room and injuring a crew member. The Omani Coast Guard provided assistance to the affected vessel, with no immediate response from Tehran.
Iranian negotiator Mohammad Baqer Qalibaf asserted that the strait would remain closed until the U.S. fulfilled the conditions outlined in an interim deal signed in June. These conditions encompassed lifting the blockade on Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military actions.
The agreement, which aimed to halt military operations across all fronts, quickly unraveled due to disputes over control of the Strait of Hormuz. This narrow water passage previously facilitated the transportation of a significant portion of global oil and liquefied natural gas.
Iran reiterated its willingness to engage in dialogue with the U.S., emphasizing that negotiations should not be viewed as a sign of surrender. Iranian officials affirmed their commitment to defending the nation’s security, dignity, and allies while averting war.
Economic uncertainties and potential hardships caused by further sanctions remain a concern for Iranian leaders, who fear that increased economic pressures could reignite unrest and undermine the legitimacy of the Islamic Republic.
Throughout the conflict, numerous casualties have been reported in Iran and Lebanon, with Iran conducting airstrikes on U.S. military installations and infrastructure in various countries. Brent crude oil futures have surged, reaching $126 US per barrel at the peak, representing a 75% increase from prewar levels.
An official from the U.S. administration reiterated warnings about the possibility of imposing additional economic sanctions on Iran, emphasizing the range of options available in the coming months to exert pressure on the Iranian economy.