US President Donald Trump has said no talks are taking place or scheduled with Iran, contradicting earlier comments from his special envoy and Iran’s position that the Strait of Hormuz remains closed to shipping.
Trump’s comments came on Tuesday as prospects for a deal to end the nearly six-month US-Iran conflict weakened, sending oil prices higher and weighing on global financial markets.
“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” Trump said in a post on Truth Social.
He also insisted that the Strait of Hormuz was open and operating, adding that the US naval blockade remained in force and that water mines had been removed or detonated.
Trump’s comments contradicted remarks made a day earlier by his son-in-law and special envoy, Jared Kushner, who said discussions between the US government and different areas of the Iranian government were still underway and were more robust than they had previously been.
The diplomatic setback followed the expiration on Monday of a temporary ceasefire agreement between Washington and Tehran.
A senior Iranian official told Reuters that Iran was moving towards a “fully offensive” military posture because diplomatic efforts to secure a permanent end to the conflict had stalled.
Iran’s top negotiator, Mohammad Baqer Qalibaf, meanwhile said the Strait of Hormuz would remain shut until Washington met the conditions of an interim agreement signed with Tehran in June.
The conditions include the lifting of the US blockade of Iranian ports, removal of oil sanctions, release of Iran’s frozen assets and an end to US military threats and operations, according to Qalibaf.
The June 17 memorandum of understanding had provided 60 days for the two countries to negotiate a broader agreement covering Iran’s nuclear programme and US sanctions. The deadline expired on Monday, with Trump indicating that he did not intend to extend the arrangement.
The disagreement over the Strait of Hormuz has become a central obstacle to the broader diplomatic process. Before the conflict, the strategic waterway carried roughly one-fifth of global oil and liquefied natural gas shipments.
Despite Trump’s assertion that the waterway was operating, shipping traffic remained severely disrupted.
Preliminary Kpler data showed only six commodity vessels transited the Strait on Monday, compared with a 10-day average of 11. No very large crude carriers or LNG tankers were recorded crossing during the period.
The United Kingdom Maritime Trade Operations also reported that a vessel was struck by an unknown projectile while transiting outbound through the Strait on Tuesday, causing engine-room damage and a crew casualty. The remaining crew were assisted by the Omani Coast Guard.
The UAE also reported detecting two ballistic missiles launched from Iran, which it assessed as targeting maritime traffic. Both missiles fell into the sea, according to the UAE authorities.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei rejected the UAE’s allegations as baseless.
The UAE subsequently announced the suspension of trade activities, exchanges and financial transactions with Iran until further notice, citing the regional escalation.
The uncertainty surrounding the Strait and the stalled diplomatic process have also unsettled energy markets.
Brent crude futures settled at $91.02 a barrel on Tuesday, up 15 cents, or 0.17%, while US West Texas Intermediate crude rose 44 cents, or 0.52%, to $84.94. Both benchmarks closed at their highest levels since July 24.
Brent had previously surged to $126 a barrel during the conflict, approximately 75% above pre-war levels.
The geopolitical uncertainty also weighed on financial markets, with long-term borrowing costs in several major economies approaching multi-decade highs as investors assessed the potential inflationary and fiscal consequences of a prolonged conflict.
Washington has continued to demand that Iran prevent the development of a nuclear weapon, while experts have questioned how such an objective could be secured without addressing enriched uranium believed to remain at sites previously targeted by US military strikes.
Iran, for its part, has maintained that it remains open to dialogue but rejects what it considers negotiations under military pressure.
The widening diplomatic gap raises the risk of further disruption to energy supplies and maritime trade, particularly if traffic through the Strait of Hormuz remains restricted.
With the ceasefire expired and both sides maintaining conflicting positions over negotiations and the waterway, markets are now closely watching for signs of renewed military escalation or a return to substantive diplomacy.
