U.S. President Donald Trump stated that there were no ongoing discussions with Iran and affirmed that the Strait of Hormuz remained open, contradicting Iran’s claim that the crucial waterway was 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, with stock markets declining and borrowing costs for major economies, including the U.S., reaching multi-decade highs. Despite a temporary ceasefire agreement expiring on Monday, there were no reports of fresh strikes by either side on Tuesday.
Trump declared on Truth Social that there were no talks or scheduled conversations with Iran and emphasized that the Naval Blockade was still in effect while confirming the operational status of the Hormuz Strait. Meanwhile, Jared Kushner, Trump’s son-in-law and special envoy, had previously expressed optimism about the ongoing talks with Iran, describing them as potentially more robust than before.
The conflict, which commenced with joint U.S.-Israeli strikes on Iran, has evolved into a stalemate, with Iran maintaining its threats to shipping in the strait and the U.S. warning of possible renewed attacks if negotiations fail to produce a long-term 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 believed to be hidden at previously targeted sites.
Amid Trump’s assertions of an improving situation in the Gulf, reports continued to surface about attempts to disrupt shipping activities. The United Arab Emirates reported detecting two ballistic missiles launched from Iran, marking the first such incident since a previous strike on the Fujairah port. The UAE subsequently suspended various interactions with Iran, citing regional escalation jeopardizing peace and security.
Furthermore, the United Kingdom Maritime Trade Operations reported an incident where a vessel transiting the Strait of Hormuz was struck by an unknown projectile, resulting in engine room damage and casualties among the crew. The Omani Coast Guard provided assistance to the affected crew members, with no immediate response from Tehran regarding the incident.
Iran’s top negotiator, Mohammad Baqer Qalibaf, stated that the strait would remain closed until the U.S. fulfilled the conditions of an interim deal signed in June, including lifting the blockade of Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military operations. The agreement, aimed at terminating military actions and resolving disputes peacefully, unraveled due to disagreements over control of the strategic Strait of Hormuz.
Despite expressing openness to dialogue with the U.S., Iranian officials emphasized that negotiations should not be mistaken for capitulation. As the conflict persists, Iranian leaders are concerned that additional economic sanctions could exacerbate hardships, fuel unrest, and undermine the legitimacy of the Islamic Republic. The conflict has resulted in significant casualties and disruptions, with oil prices surging and geopolitical tensions escalating.
An official from the U.S. administration reiterated the possibility of further economic sanctions on Iran, indicating a willingness to intensify pressure in the coming months.