Why Trump is ‘low-keying’ talks with Iran as Hormuz crisis drives oil higher

U.S. President Donald Trump has reportedly shifted his approach to talks with Iran, focusing on economic pressure rather than military conflict as the standoff between the nations persists. In an Axios interview, Trump stated, "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money."

Iran's state media has confirmed that no formal negotiations have taken place between the two countries. Meanwhile, Iranian officials insist that direct discussions with America cannot commence until the U.S. adheres to the interim deal signed in June. However, Iran is reportedly engaging in negotiations with Oman to reopen the Strait of Hormuz.

On the economic front, crude oil prices have climbed, driven by uncertainties surrounding the Strait's reopening. Iran has announced that a deal with Oman, aimed at establishing new shipping lanes in the strategic waterway, is nearing completion. Meanwhile, tensions may be escalating further as the Iran-aligned Houthi rebels in Yemen have reportedly launched attacks against Saudi forces and a significant oil refinery.