US-Iran Talks Disputed as Hormuz Shipping Risks Continue

Conflicting statements from the United States and Iran over possible negotiations to end their five-month-long conflict created fresh uncertainty on Tuesday, while a new shipping incident in the Strait of Hormuz continued to highlight risks to global energy supplies.

US President Donald Trump said on Monday that discussions with Iran were currently taking place and described them as a "last chance" for Tehran to agree to what he called a good deal. However, Iranian officials rejected those claims, stating that no negotiations were underway or scheduled.

Trump Says Talks Are Happening

Speaking to reporters during an Oval Office event, President Donald Trump said negotiations were ongoing and claimed the discussions were taking place at the request of Iran, Saudi Arabia, the United Arab Emirates, Qatar, and others.

"They are going on right now," Trump said when asked about the status of negotiations.

He added that the talks represented "a last chance" for Iran to sign what he described as a good agreement.

Trump's remarks came shortly after he said he had cancelled "massive attacks" that had been authorized against Iran over the weekend because diplomatic talks were expected to take place. The decision followed a pattern in which he has announced possible military action before later pointing to diplomatic contacts as a reason for stepping back.

Iran Rejects Reports of Negotiations

Iran's Foreign Ministry spokesman Esmail Baghaei denied that any negotiations with the United States were taking place.

According to Baghaei, no meetings with US officials had been arranged, and Iran had no plans to host foreign delegations or send negotiators abroad in the coming days.

He also said all Iranian negotiators remained inside the country except Foreign Minister Abbas Araqchi, who was on a religious pilgrimage in Iraq.

Baghaei explained that the only discussions currently underway involved talks with Oman regarding the management of the Strait of Hormuz.

Shipping Incident Highlights Ongoing Risks

The latest maritime incident added to concerns surrounding shipping through the Strait of Hormuz, a critical global energy route.

The United Kingdom Maritime Trade Operations (UKMTO) agency reported that one cargo vessel broadcast a distress message stating it had been struck by an unidentified projectile near the Strait of Hormuz off the coast of Oman.

The incident occurred as shipping activity through the waterway remained significantly reduced.

According to Kpler data, only six vessels passed through the Strait of Hormuz on Monday, including three oil tankers and three bulk carriers. That was down from seven vessels recorded the previous day.

The route remains under close attention after Iran largely restricted transit through the strait before it was blockaded during the conflict. The Strait of Hormuz is a vital passage for around one-fifth of global crude oil and natural gas shipments.

Financial Markets React to Hopes of Progress

Despite the conflicting political statements, financial markets responded positively to hopes that tensions between Washington and Tehran could ease.

Brent crude oil futures dropped about 7% to approximately $83.77 per barrel on Monday.

At the same time, the Dow Jones Industrial Average closed at a record high. On Tuesday, Asian stock markets and oil prices both moved slightly higher.

Regional Pressure Strategy Remains a Key Concern

Officials and analysts in the Gulf believe Iran continues to rely on pressure through regional trade routes, shipping lanes, and energy infrastructure to increase the economic cost of confrontation for the United States and its allies.

They say Tehran hopes this approach will convince Washington that limiting the conflict is less costly than rejecting Iran's demands regarding the Strait of Hormuz.

Michael Knights of the Washington Institute said Iran's strongest advantage is its ability to affect neighbouring countries and the global economy.

"Their big advantage is that they can hurt the regional states and the global economy," he said.

Trump Repeats Tough Message on Truth Social

Later on Monday, Trump posted another message on Truth Social, describing Iran's leadership as "unbelievably duplicitous."

He claimed Iran had requested a meeting and said additional talks were expected in the immediate future.

Trump also repeated his claim that the US Navy maintained complete control over the Strait of Hormuz.

"The United States Wall of Steel! Nothing gets through to Iran, unless we want it to, and nothing will get through, unless a Deal, or Total Surrender, is accomplished," he wrote.

Diplomatic and Military Pattern Continues

The latest developments follow a repeated pattern since Trump launched "Operation Epic Fury" alongside Israel more than five months ago.

During that period, Trump has repeatedly threatened military action before later pointing to diplomatic contacts as the reason for delaying or cancelling planned operations.

Iran has consistently rejected negotiations with Washington since the collapse in early July of a memorandum of understanding that both sides had signed the previous month in an effort to end the conflict.

Trump has also not yet achieved the goals he outlined at the beginning of the conflict, including dismantling Iran's nuclear programme, reducing its ability to attack regional rivals, and creating conditions for political change inside Iran.

Repeated US actions have been followed by escalating Iranian responses targeting US forces in the region, Gulf Arab allies, and commercial shipping before tensions eased again.