U.S. President Donald Trump stated on Tuesday that there were no ongoing discussions with Iran and confirmed that the Strait of Hormuz was open, contrary to Iran’s claim of the waterway being closed to shipping. The diminishing hopes of resolving the nearly six-month-long 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 due to concerns about long-term inflationary and fiscal consequences.
After a temporary ceasefire agreement expired on Monday, a senior Iranian official mentioned that Iran was transitioning to a “fully offensive” military stance due to the diplomatic impasse. However, there were no reports of new attacks from either side on Tuesday. Trump emphasized in a post on Truth Social that there were no ongoing or scheduled talks with Iran and reiterated the full enforcement of the Naval Blockade with the Strait of Hormuz operating normally.
Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, stating that talks with Iran were still in progress and were potentially more robust than before. The conflict, initiated by joint U.S.-Israeli strikes on Iran, has evolved into a standoff, with Iran threatening shipping in the strait and the U.S. warning of potential renewed attacks if negotiations fail to yield a lasting resolution. One of the primary U.S. objectives is to prevent Iran from obtaining a nuclear weapon, a challenging task without addressing the enriched uranium suspected to be stored at previously targeted sites.
Despite Trump’s positive outlook on the Gulf situation, reports indicated ongoing attempts to disrupt shipping activities. The United Arab Emirates’ Defence Ministry reported detecting two ballistic missiles launched from Iran, the first incident since an earlier strike on the Fujairah port. The UAE Foreign Ministry announced the suspension of all trade activities with Iran, citing regional tensions that jeopardize peace and security.
Furthermore, the United Kingdom Maritime Trade Operations received a report of a vessel being struck by an unknown projectile while passing through the Strait of Hormuz, resulting in engine room damage and crew casualties. Iranian Speaker of Parliament, Mohammad Baqer Qalibaf, stated that the strait would remain closed until the U.S. fulfilled the conditions outlined in an interim agreement signed in June.
Despite the expiration of the 60-day time frame for a broader deal on Iran’s nuclear program and U.S. sanctions, Trump indicated no intention to extend the agreement. The conflict’s focus shifted to disagreements over control of the vital Strait of Hormuz, a key passage for global oil and natural gas transport. Iranian officials reiterated their readiness for dialogue with the U.S. while emphasizing that negotiations should not be mistaken for surrender, highlighting their commitment to defending national security and interests.