U.S. ​President Donald Trump said on Tuesday no talks were taking place with Iran and insisted the Strait of Hormuz was open, contradicting Iran’s 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 U.S. hit multi-decade highs, amid concerns about the long-term inflationary and fiscal impact of the crisis.

A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to a “fully offensive” military posture due to the diplomatic stalemate, though there were no reports of fresh strikes by either side on Tuesday.

“There are no talks or conversations ​going on, or scheduled, with the Islamic Republic of Iran,” Trump said in a post on Truth Social.

“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 struck an upbeat tone, saying talks with Iran were still under way ⁠and were “probably more robust” than they had ever been.

The nearly six-month conflict, which began with joint U.S.-Israeli strikes on Iran, has settled into a standoff, with Iran continuing to threaten shipping in the strait and Washington saying ​it could renew attacks if talks do not yield a long-term settlement.

Among the top U.S. goals are preventing Iran from acquiring a nuclear weapon, but experts say that will be difficult without removing the enriched uranium believed to be ​buried at sites struck by the U.S. military previously.

SHIPPING DISRUPTED

Despite Trump’s assertions that the situation in the Gulf was improving, countries continued to report attempts to disrupt shipping.

The United Arab Emirates’ Defense Ministry said that it detected two ballistic missiles launched from Iran, the first such incident reported since a May 4 strike on the Fujairah port.

It later reported that the missiles were targeting “maritime traffic” based on its assessments, according to a statement posted on X. It said both missiles fell into the sea.

Iran’s foreign ministry spokesperson Esmaeil Baghaei rejected ​the comments and said the UAE’s “accusations” were “baseless.”

The UAE Foreign Ministry said it had suspended all trade activities, exchanges and financial transactions with Iran until further notice, citing regional escalation that it said undermined regional and international peace ​and security.

Direct cargo shipping between the UAE and Iran had only resumed in late June via Dubai’s Jebel Ali Port. The UAE had suspended direct shipping in early March, just days after the war began.

The United Kingdom Maritime Trade Operations said it ‌received a report ⁠on Tuesday that a vessel was struck by an unknown projectile while sailing out through the Strait of Hormuz, causing engine room damage and a crew casualty.

The Omani Coast Guard was assisting the remaining crew, according to the report. There was no immediate comment from Tehran.

Preliminary shipping data on Tuesday showed ship crossings via the Strait of Hormuz were still in single digits on Monday.

Top Iranian negotiator Mohammad Baqer Qalibaf said in comments published by state media that the strait would remain shut until the U.S. met the conditions of an interim deal signed with Iran in June.

These conditions include the U.S. ending 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.

A memorandum of understanding signed on June 17 ​had set a 60-day time frame for a broader ⁠deal on Iran’s nuclear programme and U.S. sanctions. That period elapsed on Monday and Trump said he had no plans to extend it.

The agreement, which declared the “immediate and permanent termination of military operations on all fronts,” had 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.

IRAN SAYS IT STILL OPEN TO TALKS

Iran remains open to dialogue with the U.S. 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.

Even as Iran projects resilience in the war, its leaders are worried that a threat of more economic punishment could increase hardships, reignite unrest and further erode the Islamic Republic’s legitimacy, according to three Iranian officials.

Thousands of people have been killed in the conflict, ⁠mainly in Iran ​and Lebanon. Iran has struck U.S. military bases and infrastructure in countries including Oman, Jordan, Kuwait, Israel, the United Arab Emirates and ​Saudi Arabia.

Benchmark Brent crude oil futures have surged during the conflict, hitting a peak of $126 a barrel, roughly 75% above pre-war levels. Brent crude futures settled up 20 cents on Tuesday at just over $91 a barrel.

A U.S. administration official reiterated warnings that Washington could go further on ​hitting Iran’s economy following multiple sanctions actions.

“There are many levers the president can crank harder in the weeks and months ahead.”

Turkish President Tayyip Erdogan urged U.S. President Donald Trump in a phone call to pursue talks with Iran to de-escalate ​tensions between the two countries, and offered Ankara’s support for peace ‌efforts, the Turkish presidency said on Tuesday.

Turkey, which has NATO’s second-largest army and borders Iran, has repeatedly called for an end to the war. It has maintained close contact with the ​United States, Iran, and mediators such as Pakistan and Qatar, while also acting as ​an intermediary between the parties, Reuters reported.

“Erdogan stated that it is of great ⁠importance to make the utmost of diplomacy regarding the tensions between Iran and ​the United States, that we hope the talks will continue, and that Turkey ​will continue to support peace efforts,” the presidency said in a statement.

The call comes after a senior Iranian official told Reuters earlier on Monday that Iran would shift to a “fully offensive” military ​posture because efforts to negotiate a permanent end to the war have stalled, ​as Washington ruled out extending a temporary ceasefire agreement.

Progress towards a resumption of oil tanker ‌traffic through ⁠the Strait of Hormuz has also stalled.

Turkey has criticised the U.S. and Israeli assault on Iran, while also condemning the Iranian attacks on Gulf states and calling for the re-opening of the strategic strait.

On Monday, Turkey’s foreign minister discussed the strait’s ​re-opening and the continuation ​of the ceasefire ⁠with his Iranian counterpart.

The presidency added that Erdogan and Trump also discussed bilateral ties, the war in Gaza, and a defence ​pact signed between Turkey, Saudi Arabia, and Pakistan, adding that ​the Turkish ⁠leader praised the accord as a sign of a “strong stance” for regional stability and security.

It said Erdogan told Trump that Israel’s attacks on Palestinians had increased at a time ⁠when the ​second phase of Trump’s Gaza Peace Plan was ​supposed to come into effect.

The White House did not immediately respond to a request for comment on ​the call.

Donald Trump’s envoy and son-in-law Jared Kushner met with Israeli Prime Minister ‌Benjamin Netanyahu in Jerusalem on Monday, a day after holding a rare meeting with Hamas’ leader in Cairo in a bid to push forward the U.S. president’s Gaza plan.

Netanyahu, whose ruling coalition is trailing in Israeli opinion polls ahead of an October national election, publicly rejected this month ​a U.S.-backed agreement that would see Hamas surrender its arms in exchange for Israel withdrawing from Gaza, Reuters reported.

Trump had ​said the agreement would be carried out in phases, with Israeli forces withdrawing from Gaza as disarmament ⁠proceeded and an ‘International Stabilization Force’ worked with a new Palestinian police force to secure the territory.

But Netanyahu, Israel’s longest-serving leader, has ​said the country’s military will only withdraw once Hamas and other armed groups in Gaza have been completely disarmed. Diplomats say ​Israel is unlikely to make any major concessions over Gaza ahead of the October 27 election.

KUSHNER SEEKS TO PUSH AHEAD WITH STALLED GAZA PLAN

Kushner was joined in the Jerusalem meeting with Netanyahu by Nickolay Mladenov, Trump’s Board of Peace envoy for Gaza, the two ​sources said, speaking on condition of anonymity as they were not authorized to discuss the matter publicly.

Netanyahu’s office ​did not immediately respond to a request for comment.

Mladenov, a former U.N. official with close ties to the United Arab Emirates, an ‌influential ⁠Middle Eastern state, helped broker last month’s disarmament agreement and is widely seen as leading efforts to implement Trump’s original 20-point plan to end the war, which Israel and Hamas agreed to last year.

However, there has so far been little progress, with Israel continuing to carry out strikes on Gaza despite agreeing to a ceasefire as part of Trump’s plan. ​Hamas last month agreed to ​a new U.S.-backed 15-point ⁠roadmap aimed at moving Trump’s plan forward. Israel rejected that roadmap.

Earlier, a source said Hamas leader Khalil Al-Hayya had been present at some of the meetings in Cairo on Sunday that mediators held ​with Kushner and Mladenov.

It marks Kushner’s second known meeting with representatives of Hamas, the Palestinian militant group designated a ​terrorist movement by ⁠the United States.

Kushner previously met Hamas officials alongside U.S. envoy Steve Witkoff in October 2025, helping clinch a deal that led to a ceasefire in Gaza and the release of remaining hostages seized by Hamas in the October 7, 2023 attack on ⁠Israel.

Trump said ​in late July a deal had been reached for the complete disarmament of Hamas ​and other armed groups in Gaza. Hamas has said it agreed to the plan but the deal’s implementation would depend on Israel first meeting its ​own commitments, including withdrawal and halting attacks.