U.S. President Donald Trump said on Tuesday no talks were taking place with Iran and insisted the Strait of Hormuz was open, contradicting Iran’s assertion that the critical waterway remained shut to shipping.
The receding prospects of a deal to end the nearly six-month conflict drove up oil prices again on Tuesday, while stock markets sagged and borrowing costs for major economies including the U.S. hit multi-decade highs, amid concerns about the long-term inflationary and fiscal impact of the crisis.
A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to a “fully offensive” military posture due to the diplomatic stalemate, though there were no reports of fresh strikes by either side on Tuesday.
“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” Trump said in a post on Truth Social.
“The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated,” he added.
On Monday, Jared Kushner, Trump’s son-in-law and special envoy, had struck an upbeat tone, saying talks with Iran were still under way and were “probably more robust” than they had ever been.
The nearly six-month conflict, which began with joint U.S.-Israeli strikes on Iran, has settled into a standoff, with Iran continuing to threaten shipping in the strait and Washington saying it could renew attacks if talks do not yield a long-term settlement.
Among the top U.S. goals are preventing Iran from acquiring a nuclear weapon, but experts say that will be difficult without removing the enriched uranium believed to be buried at sites struck by the U.S. military previously.
SHIPPING DISRUPTED
Despite Trump’s assertions that the situation in the Gulf was improving, countries continued to report attempts to disrupt shipping.
The United Arab Emirates’ Defense Ministry said that it detected two ballistic missiles launched from Iran, the first such incident reported since a May 4 strike on the Fujairah port.
It later reported that the missiles were targeting “maritime traffic” based on its assessments, according to a statement posted on X. It said both missiles fell into the sea.
Iran’s foreign ministry spokesperson Esmaeil Baghaei rejected the comments and said the UAE’s “accusations” were “baseless.”
The UAE Foreign Ministry said it had suspended all trade activities, exchanges and financial transactions with Iran until further notice, citing regional escalation that it said undermined regional and international peace and security.
