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, directly contradicting Iran’s claim that the crucial water passage remained closed to maritime traffic. The diminishing hopes of reaching a resolution to the nearly six-month conflict led to a rise in oil prices, a drop in stock markets, and increased borrowing costs for major economies including the U.S., due to concerns about long-term inflationary consequences.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official disclosed to Reuters that Iran was transitioning to a “fully offensive” military stance in response to the diplomatic impasse, although no new attacks were reported by either side on Tuesday. President Trump clarified in a post on Truth Social that there were no ongoing or scheduled talks with Iran and emphasized the continued enforcement of a naval blockade, affirming the operational status of the Hormuz Strait with the removal or detonation of all water mines.
Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, mentioning that talks with Iran were still active and perhaps more vigorous than ever before. The conflict, which initiated with joint U.S.-Israeli strikes on Iran, has evolved into a stalemate, with Iran persisting in threatening shipping in the strait and the U.S. hinting at potential renewed attacks if negotiations fail to produce a lasting settlement. A primary U.S. objective is to prevent Iran from obtaining nuclear weapons, a challenging task deemed unattainable without addressing the enriched uranium reportedly concealed at previously targeted sites.
Despite Trump’s positive remarks regarding the Gulf situation, reports continued to emerge of 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 attack on the Fujairah port in early May. The missiles were said to have targeted maritime traffic, according to the UAE, while Iran’s foreign ministry spokesperson dismissed the accusations as unfounded. Subsequently, the UAE suspended various interactions with Iran, citing regional tensions that jeopardized peace and security on both regional and international scales.
A vessel transiting the Strait of Hormuz was reported to have sustained damage from an unknown projectile, resulting in engine room damage and casualties among the crew, according to the United Kingdom Maritime Trade Operations. The Omani Coast Guard was providing assistance to the affected crew members, with no immediate response from Tehran. Iranian negotiator Mohammad Baqer Qalibaf affirmed that the strait would remain closed until the U.S. met the conditions outlined in an interim deal signed with Iran in June, encompassing actions such as lifting the blockade on Iranian ports, easing oil sanctions, releasing frozen assets, and ceasing threats and military operations.
The elapsed 60-day timeframe for a broader agreement on Iran’s nuclear program and U.S. sanctions, established by a memorandum of understanding signed on June 17, prompted Trump to declare no intention of extending the deadline. The agreement, which stipulated the immediate cessation of military operations, unraveled swiftly due to disagreements over control of the Strait of Hormuz, a critical passage for global oil and gas transport. While Iran remains open to dialogue with the U.S., officials emphasize that negotiations should not be equated with capitulation, reaffirming Iran’s readiness to defend its interests and allies without seeking conflict.