Tensions over the Strait of Hormuz intensified Tuesday as the United States and Iran offered conflicting accounts of whether the strategic waterway was open and whether diplomatic talks were continuing.
President Donald Trump said no negotiations were taking place or scheduled with Tehran. He also said the U.S. naval blockade of Iranian-linked traffic remained in force, while asserting that the strait was operating and that mines had been cleared. His comments differed from statements by envoy Jared Kushner a day earlier that talks remained active.
Iranian officials maintained that the strait would stay closed until Washington fulfilled conditions outlined in a June interim agreement. Those demands include lifting the blockade of Iranian ports and oil sanctions, releasing frozen Iranian assets, and ending military threats and operations. The 60-day period established for reaching a broader nuclear and sanctions agreement expired Monday without an extension.
Reports from the region indicated continued risks to commercial shipping. The United Arab Emirates said it detected two Iranian ballistic missiles aimed at maritime traffic, though both fell into the sea. Iran rejected the allegation. The UAE subsequently suspended trade and financial transactions with Iran.
Separately, a vessel leaving the strait was struck by an unidentified projectile, according to the United Kingdom Maritime Trade Operations. The incident reportedly damaged the engine room and caused a crew casualty, with Oman assisting the remaining crew.
The diplomatic impasse followed the expiration of a temporary ceasefire in a conflict approaching six months. Although no new strikes were reported Tuesday, an Iranian official said the country was adopting a more offensive military posture.
Oil prices rose, markets declined, and borrowing costs increased amid concerns about inflation and finances. Brent crude settled above $91 US a barrel, after reaching $126 during the conflict. Washington warned that further economic measures against Iran remained possible.