US-Iran Tensions Escalate as Talks Stall and Strait of Hormuz Remains Disputed

President Trump said Tuesday that no talks with Iran are underway or scheduled, insisting the Strait of Hormuz remains open despite Tehran’s repeated claims that the waterway is shut. A temporary ceasefire expired Monday, and Iranian officials say the country is shifting to a more offensive military posture amid the stalemate. Iran’s top negotiator maintains the strait will stay closed until Washington lifts its port blockade, ends oil sanctions, and releases frozen Iranian assets.

Shipping Disrupted, Casualties Reported

Despite Trump’s assurances, ship crossings through the strait remained in the single digits. A vessel was struck by an unknown projectile while transiting outbound, causing engine damage and a crew casualty, with survivors aided by Oman’s coast guard.

Markets Feel the Pressure

Oil prices climbed again on fading peace hopes, while borrowing costs for major economies hit multi-decade highs. US gasoline prices have risen above $4 a gallon, up from under $3 before the conflict began.