Trump says talks underway, Iran denies negotiations as ship hit near Hormuz

DUBAI/WASHINGTON: Conflicting statements from Washington and Tehran have cast fresh doubt over the status of negotiations aimed at ending the five-month conflict between the United States and Iran, while a reported attack on a commercial vessel near the Strait of Hormuz reflects continued risks to global energy supplies.

US President Donald Trump said on Monday that negotiations with Iran were already underway, describing the discussions as Tehran’s “last chance” to secure a favourable agreement.

“They are going on right now,” Trump told reporters during an Oval Office event, adding that the talks were taking place at the request of Iran as well as Saudi Arabia, the United Arab Emirates and Qatar. “This is a last chance for them to sign a good document,” he said.

Trump’s remarks came days after he said he had cancelled what he described as “massive attacks” on Iran to allow room for diplomacy, continuing a pattern in which threatened military action has been followed by renewed calls for negotiations.

Iran, however, rejected Trump’s claims, insisting that no talks with the United States were taking place.

Foreign Ministry spokesperson Esmail Baghaei had said there were “no negotiations with the United States” and that no meetings had been scheduled. He added that Iran had no plans to receive foreign delegations or dispatch negotiators abroad in the coming days.

According to Baghaei, all Iranian negotiators remain in the country except Foreign Minister Abbas Araghchi, who is in Iraq for Arbaeen. He said the only ongoing diplomatic engagement involved discussions with Oman on issues related to the Strait of Hormuz.

Meanwhile, maritime security concerns intensified after the United Kingdom Maritime Trade Operations (UKMTO) agency reported that a cargo vessel near Oman’s coast broadcast that it had been struck by an unidentified projectile close to the strategic waterway.

The incident comes as shipping through the Strait of Hormuz continues at a reduced pace following months of disruption. Data from shipping analytics firm Kpler showed that only six vessels, including three oil tankers and three bulk carriers, transited the strait on Monday, down from seven the previous day.

Stocks rise, oil down on hopes for resolution

Still, hopes that U.S.-Iran tensions were easing again pushed down oil prices, while major stock indexes gained on Monday.

Brent crude futuresLCOc1 fell about 7% to around $83.77 a barrel while the Dow .DJIclosed at a record high. Asian stocks and oil prices both edged higher on Tuesday.

Gulf officials and analysts say Iran is betting it can outlast Washington by turning the Middle East’s trade routes, shipping lanes and energy infrastructure into pressure points that steadily raise the cost of confrontation.

It hopes such a strategy will convince the United States and its allies that containing the crisis is more costly than accommodating Iran’s demands over the Strait of Hormuz.

“Their big advantage is that they can hurt the regional states and the global economy,” said Michael Knights of the Washington Institute.

In a post on Truth Social later on Monday, Trump called Iran’s leadership “unbelievably duplicitous,” saying they had asked for a meeting and more talks were set for the “immediate future.”

He also repeated his assertion that the U.S. Navy had total 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.

Repeated pattern

Monday’s events appeared to fit a pattern since Trump launched “Operation Epic Fury” alongside Israel more than five months ago. Trump has threatened military action several times, only to later cite diplomatic contacts as a reason to step back.

Iran, however, has publicly rejected negotiations with Washington since the collapse in early July of a memorandum of understanding both signed the previous month, aimed at ending the conflict.

Trump has yet to achieve the objectives he set out at the outset of the war, dismantling Iran’s nuclear program, curbing its ability to attack regional rivals and creating conditions for Iranians to overthrow their clerical rulers.

Repeated U.S. actions have been met by escalating Iranian responses against U.S. forces in the region, Washington’s Gulf Arab allies and shipping, each time ending with Trump stepping back.

The Hormuz dispute remains a central point of contention, with Washington saying the June memorandum required Iran to open the strategic waterway, while Tehran says the text explicitly preserved its authority over shipping traffic.