DUBAI: An attack on a vessel near the Strait of Hormuz and a rebound in oil prices on Tuesday (Aug 4) underscored doubts that the United States-Iran war was nearing a resolution, as Tehran pushed back against US President Donald Trump’s assertion that talks were under way.
Oil prices rose nearly 3 per cent after a steep selloff in the previous session as investors reassessed optimism over diplomacy, while a cargo vessel reported being struck by an unidentified projectile near the Strait of Hormuz off Oman’s coast, according to the UKMTO maritime security agency.
Trump said on Monday that talks with Tehran were under way and Iran faced a “last chance” to reach a deal, while Iranian officials insisted no negotiations with the US were taking place.
Iran says its only talks are with Oman about the Strait of Hormuz and no major meetings are planned this week.
“They are going on right now,” Trump told reporters at an Oval Office event when asked about the state of negotiations, saying the sides were talking at the request of Iran, Saudi Arabia, the United Arab Emirates and Qatar, among others.
“This is a last chance for them (Iran) to sign a good document.”
Trump’s remarks followed his weekend decision to cancel what he described as “massive attacks” on Iran, repeating a pattern in which he has threatened major military action before stepping back and citing negotiations.
Iran’s President Masoud Pezeshkian said his country did not want the conflict to widen. “We defend our borders, but we do not seek to expand the war,” he was quoted as saying by state media.
Iran has halted most traffic through Hormuz while Washington maintains a blockade of Iranian shipping and ports, disrupting a corridor that normally carries about a fifth of global oil and liquefied natural gas shipments.
Maritime sources told Reuters on Tuesday that the vessel struck near Hormuz was a dry bulk ship. Its crew had to abandon the vessel, and one seafarer was missing, the sources said.
Traffic through Hormuz remained slow, with three tankers and three bulk carriers among the six vessels transiting the strait on Monday, down from seven the previous day, Kpler data showed. In peacetime, more than 100 ships would typically transit per day.
