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, countering Iran’s claim that the crucial water passage remained closed to shipping. The diminishing hopes of reaching a resolution to the nearly six-month conflict caused oil prices to rise once again on Tuesday, leading to stock market declines and increased borrowing costs for major economies, including the U.S.
Following the expiration of a temporary ceasefire agreement on Monday, a senior Iranian official conveyed to Reuters that Iran was transitioning to a “fully offensive” military stance due to the diplomatic impasse, although there were no reports of fresh 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 enforcement of the Naval Blockade, confirming the operational status of the Hormuz Strait with the removal or detonation of all water mines.
Meanwhile, Jared Kushner, Trump’s son-in-law and special envoy, had expressed optimism on Monday, suggesting that discussions with Iran were still in progress and potentially more substantial than before. The conflict, which began with joint U.S.-Israeli strikes on Iran, has evolved into a standoff, with Iran threatening shipping in the strait and the U.S. indicating potential renewed attacks if negotiations fail to yield a lasting settlement.
Among the primary U.S. objectives is preventing Iran from obtaining a nuclear weapon, a task that experts believe will be challenging without addressing the enriched uranium reportedly stored at previously targeted sites by the U.S.
Despite Trump’s positive assessments of the Gulf situation, reports persisted 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 a May 4 attack on the Fujairah port. The UAE later stated that the missiles were aimed at “maritime traffic,” with both projectiles landing in the sea. Iran’s foreign ministry spokesperson dismissed the UAE’s allegations as unfounded.
In response to escalating tensions, the UAE Foreign Ministry announced the suspension of all trade, exchanges, and financial transactions with Iran, citing regional escalations undermining peace and security. Direct cargo shipping between the UAE and Iran had only recently resumed in late June through Dubai’s Jebel Ali Port after being halted in early March at the conflict’s onset.
Additionally, the United Kingdom Maritime Trade Operations reported an incident on Tuesday where a vessel transiting the Strait of Hormuz was struck by an unidentified projectile, resulting in engine room damage and casualties among the crew. The Omani Coast Guard was providing assistance to the affected crew members, with no immediate comment from Tehran.
Top Iranian negotiator Mohammad Baqer Qalibaf asserted that the strait would remain closed until the U.S. fulfills the conditions outlined in an interim agreement signed with Iran in June. These conditions include lifting the blockade on Iranian ports, removing oil sanctions, releasing frozen assets, and ceasing threats and military activities across all fronts. The memorandum of understanding signed in June, setting a 60-day timeframe for broader negotiations on Iran’s nuclear program and U.S. sanctions, expired on Monday, with Trump indicating no intention to extend it.
The dispute over control of the Strait of Hormuz, a vital waterway for global oil and natural gas transportation, quickly unraveled the initial agreement, leading to the current stalemate. Despite Iran’s openness to dialogue with the U.S., Iranian officials emphasize that negotiations should not be misinterpreted as capitulation, highlighting that military pressure and sanctions will not weaken Iran’s resolve to defend its security, dignity, and allies without seeking war.