What to know:
- Iran says it will halt indirect US talks and push to fully close the Hormuz Strait.
- Oil prices jumped over 7% as Hormuz closure fears hit energy and shipping markets.
- Tehran linked the Lebanon and Gaza attacks to wider ceasefire breaches in the US-Iran war.
Iran will stop indirect exchanges with Washington and move to close the Strait of Hormuz, Tasnim reported Monday. The announcement deepened pressure around the US-Iran war. Oil prices rose more than 7% after the CNBC report in global trading on Monday.
Tasnim also reported that Iran’s negotiators would no longer use intermediaries to send messages. The outlet was connected to claimed violations of the ceasefire. It referred to Israel’s campaign in Lebanon against Hezbollah.
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US-Iran War Tensions Rise Over Hormuz and Lebanon
The report indicated that the negotiations would not be resumed unless Israel withdraws from occupied places in Lebanon. It also called for a halt to attacks in Lebanon and Gaza. Those words furthered the controversy over the US-Iran war.
Iran and allied groups had decided to completely close Hormuz, Tasnim said. It said other fronts could include Bab el-Mandeb Strait. That passage is a link between the Red Sea and the Gulf of Aden.
The energy markets became concerned with the threat of Hormuz. Prior to the war between the USA and Iran, 20% of the world’s oil supplies transited through the strait. Gulf exports have already declined from pre-war levels.
The report was yet another blow to the hopes for a halt to the conflict. Trump had stated that he would check into a possible Iran deal at the White House. A meeting in the White House Situation Room, which ended on Wednesday without a decision.
Following that meeting, new attacks were waged between Washington and Tehran. Those strikes further undermined the ceasefire. They also lowered expectations that negotiations could soon cap the US-Iran war.
Israel also stepped up its Lebanon campaign. Netanyahu ordered strikes Monday on Hezbollah-controlled Beirut suburbs, Reuters reported. Tehran considered those attacks an integral part of the same ceasefire discussion.
Araghchi Warns US and Israel Over Ceasefire Breaches
Iranian Foreign Minister Abbas Araghchi stated that the ceasefire with Washington was on all fronts. In an X post, he stated that Lebanon was involved. He pointed out that the one violation would be counted throughout the war between the US and Iran.
Araghchi threatened that the US and Israel would be accountable for any repercussions. His comments came after Tasnim reported. They connected Tehran with Lebanon, Gaza, and direct confrontation with Washington.
The White House did not immediately respond to CNBC’s request for comment. US Central Command did not comment. Washington has not yet officially acknowledged any shifts in indirect contacts with Tehran.
Hormuz shipping continues to be significantly affected. Traffic has remained far below normal due to Iranian threats and a US retaliatory blockade. Prior to the U.S. Iran war, over 100 ships transited daily.
During the conflict, only a few vessels have gone through the waterway. The route remains vital to crude shipments from the Persian Gulf. Full closure would create additional pressure on the oil buyers.
Crude oil prices had been falling in recent weeks for both Brent and WTI. Investors had hoped a deal could reopen Hormuz. That changed in Monday’s report, and supply concerns increased in markets.
Trump wrote in his Truth Social post that Iran wanted a deal. He also criticized opponents of his handling of the US-Iran war. His message came before Tasnim reported Tehran’s tougher position.
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