US President Donald Trump announced that new talks with Iran represent their "last chance" to reach a deal and prevent an escalation of US strikes. Speaking from the Oval Office, Trump indicated that negotiations would focus on reopening the Strait of Hormuz and establishing a pathway for Iran to address concerns regarding its nuclear program. He suggested that progress on the Strait of Hormuz could be seen "today or tomorrow," with denuclearization taking longer.
Iran, however, denied engaging in direct negotiations with the United States. Iranian Foreign Ministry spokesman Esmail Baghaei stated that talks were solely with Oman regarding the management of the Strait of Hormuz, aiming for a "temporary" route for ships. He insisted that no US negotiations were taking place and no meetings were scheduled, with Iranian officials currently in the country except for Foreign Minister Abbas Araqchi, who was on a religious pilgrimage.
Trump criticized Iran's leadership as "unbelievably duplicitous," claiming that talks were underway at the request of various Middle Eastern countries, including Saudi Arabia, the United Arab Emirates, and Qatar. He reiterated that the US Navy maintained "total control" over the Strait of Hormuz. Despite the conflicting statements, Trump emphasized that this was Iran's "last chance" to sign a favorable agreement, warning of "decapitation" otherwise.
The ongoing tensions had some market impacts, with Brent crude edging higher to $84.10 a barrel after Trump's comments. The 10-year Treasury yield, however, fell six basis points to 4.68 percent in the previous session. The Strait of Hormuz, a critical oil corridor through which a fifth of global oil and liquefied natural gas flowed before the conflict, remains a major sticking point, with Iran insisting on control and charging fees, which the US rejects.
Separately, Trump also criticized ExxonMobil and Chevron for their substantial profits, urging them to reduce retail petrol prices and "give some of that back to the public." This comment highlights a broader concern over economic impacts beyond the immediate geopolitical tensions with Iran.
