Iran threatens new offensive while Trump rules out extending ceasefire deal
Tensions in the Strait of Hormuz have escalated as Iran threatens a 'fully offensive' military posture following the expiration of a ceasefire. President Trump has denied ongoing talks with Iran, while reports of a vessel strike in the region have further unsettled global markets.
Why it matters
Geopolitical instability in the Strait of Hormuz poses a direct threat to global oil supply chains and international security.
US president Donald Trump said on Tuesday no talks were taking place with Iran and none was scheduled, and he insisted 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.
A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters 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.
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