The Strait of Hormuz will remain shut until the US meets the conditions of an interim deal signed with Iran in June, the top Iranian negotiator Mohammad Baqer Qalibaf said in comments published by state media on Tuesday.
These conditions include the US lifting its blockade of Iranian ports, lifting oil sanctions, releasing Tehran's frozen assets, and ending threats and military operations on all fronts, Qalibaf told parliament. The memorandum of understanding, clinched on June 17, quickly unravelled over a dispute about control of the Strait of Hormuz, the narrow waterway through which a fifth of global oil and liquefied natural gas flowed before the war.
US President Donald Trump said the deal was "over" on July 7. A week later, Iran's foreign ministry declared it "suspended". Under the MoU, Iran and the US had committed to negotiating a final deal - covering broader issues such as the fate of Iran's nuclear programme - in a maximum of 60 days, extendable by mutual consent.
A senior Iranian official said on Monday that Iran would now shift to a "fully offensive" posture due to the stalled diplomatic efforts to secure a permanent end to the conflict.
Meanwhile, Trump said no talks were taking place with Iran and none were scheduled, and he insisted that the Strait of Hormuz was open, contradicting an earlier Iranian assertion that the critical waterway remained shut to shipping.
The receding prospects of a deal to end the nearly six-month conflict drove up oil prices again on Tuesday, while stock markets sagged and borrowing costs for major economies, including the US, hit multi-decade highs, amid concerns about the long-term inflationary and fiscal impact of the crisis.
"There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," Trump said in a post on Truth Social on Tuesday.
"The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated," he added.
On Monday, Jared Kushner, Trump's son-in-law and special envoy, had sounded an optimistic note, saying talks with Iran were still under way and were "probably more robust" than they had ever been.
Despite Trump's typically ebullient remarks about the situation in the Gulf, preliminary shipping data on Tuesday showed ship crossings via the Strait of Hormuz were still in single digits on Monday.
The United Kingdom Maritime Trade Operations said it received a report on Tuesday that a vessel was struck by an unknown projectile while transiting outbound in the Strait of Hormuz, causing engine room damage and a crew casualty.
STILL OPEN TO TALKS
Both Trump and Tehran have frequently switched between threats and more emollient rhetoric as they seek a way out of the crisis, which erupted when the US and Israel launched strikes against Iran on February 28.
Iran remains open to dialogue with the US but does not confuse negotiations with surrender, Mohammad Mokhber, an adviser to Iran's supreme leader, said on Tuesday, according to the semi-official Fars news agency.
Mokhber said military pressure and sanctions would not break Iran's resolve and that the country would defend its security, dignity and allies while not seeking war. - Agencies
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