Trump Says Iran Talks Halted as Strait of Hormuz Dispute Fuels Oil Concerns

U.S. President Donald Trump said Tuesday that Washington is not holding talks with Iran and maintained that the Strait of Hormuz remains open, directly challenging Tehran’s claim that the crucial energy shipping route is still closed.

The diplomatic impasse comes after a temporary ceasefire expired Monday, raising concerns that the nearly six-month U.S.-Iran conflict could intensify. Oil prices climbed while global stock markets weakened as investors assessed the crisis’s potential impact on inflation, trade and borrowing costs.

Trump said on Truth Social that no negotiations with Iran were underway or scheduled. He also said the U.S. naval blockade remained in effect and that mines in the Strait of Hormuz had been removed or destroyed.

His comments contrasted with remarks from special envoy Jared Kushner, who said Monday that negotiations remained active and had become increasingly robust.

Despite Trump’s claim that Hormuz was operating, shipping disruptions continued. The United Arab Emirates said it detected two Iranian ballistic missiles allegedly targeting maritime traffic, although both fell into the sea. Iran rejected the accusation as baseless. The UAE subsequently suspended trade and financial transactions with Iran.

Meanwhile, the United Kingdom Maritime Trade Operations reported that a vessel leaving the Strait of Hormuz was hit by an unidentified projectile, damaging its engine room and causing a crew casualty. Preliminary data showed vessel crossings through the strategic waterway remained in single digits Monday.

Iranian negotiator Mohammad Baqer Qalibaf said Hormuz would stay closed until Washington fulfilled conditions under an interim agreement, including lifting oil sanctions, ending the blockade of Iranian ports, releasing frozen Iranian assets and halting military threats.

Iran nevertheless signaled that diplomacy remains possible. Mohammad Mokhber, an adviser to Iran’s supreme leader, said Tehran remains open to negotiations but would not accept surrender under military or economic pressure.

The prolonged conflict has heavily affected global energy markets. Brent crude previously reached $126 per barrel, about 75% above pre-war levels, before settling slightly above $91 on Tuesday.

With no extension planned for the expired interim agreement, uncertainty over Iran negotiations, Strait of Hormuz shipping and potential additional U.S. sanctions continues to threaten global energy supplies and financial markets.