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 water passage was closed to shipping. The diminishing likelihood of a resolution to end the nearly six-month conflict led to a rise in oil prices on Tuesday, causing stock markets to decline and borrowing costs of major economies, including the U.S., to reach multi-decade highs due to concerns about long-term inflation and fiscal implications of the crisis.
A temporary ceasefire agreement expired on Monday, prompting a senior Iranian official to announce that Iran was shifting to a “fully offensive” military stance because of the diplomatic deadlock. Despite this, there were no reports of fresh attacks by either side on Tuesday. Trump clarified in a post on Truth Social that there were no ongoing or planned talks with Iran, emphasizing the continued enforcement of a naval blockade and the operational status of the Strait of Hormuz.
Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, suggesting that talks with Iran were still ongoing and possibly more substantial than before. The conflict, which commenced with joint U.S.-Israeli strikes on Iran, has evolved into a stalemate, with Iran maintaining threats to the strait’s shipping and the U.S. indicating potential resumption of attacks if negotiations fail to produce a lasting resolution. A key U.S. objective is to prevent Iran from obtaining a nuclear weapon, a challenging task that experts believe necessitates the removal of enriched uranium purportedly buried at previously targeted sites.
Despite Trump’s claims of progress in the Gulf situation, reports from different nations continued to highlight attempts to disrupt shipping activities. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, marking the first such incident since an earlier strike on the Fujairah port. The UAE suspended trade activities, exchanges, and financial transactions with Iran due to escalating regional tensions, which it deemed detrimental to international peace and security.
A vessel transiting through the Strait of Hormuz reportedly sustained damage to its engine room and casualties among the crew after being struck by an unidentified projectile, as per the United Kingdom Maritime Trade Operations. The Omani Coast Guard provided assistance to the remaining crew members, while Tehran had not issued an immediate response to the incident. Iranian parliament Speaker Mohammad Baqer Qalibaf affirmed that the strait would remain closed until the U.S. fulfilled the conditions outlined in an interim deal signed with Iran in June.
Meanwhile, Iran signaled its openness to dialogue with the U.S., emphasizing that negotiations should not be misconstrued as capitulation. Iranian leaders reiterated their commitment to defending their security, dignity, and allies while rejecting military pressure and sanctions as means to subdue the country’s resolve. The conflict has resulted in a significant death toll, predominantly in Iran and Lebanon, with Iran conducting bombings on various U.S. military installations and infrastructure in neighboring countries.
Throughout the conflict, Brent crude oil futures have experienced substantial surges, reaching a peak of $126 US a barrel, representing a 75% increase from prewar levels. The futures settled slightly higher on Tuesday at over $91 US a barrel. U.S. officials have warned of potential further economic sanctions against Iran in the upcoming weeks and months to amplify pressure on the Iranian regime.