Differences remain over US-Iran talks

An attack on a vessel near the Strait of Hormuz and a rebound in oil prices on Tuesday underscored doubts that the US-Iran conflict was nearing a resolution, as the two sides made opposing claims about whether they were holding talks.

Oil prices rose nearly 3 percent after a steep sell-off 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.

The cargo ship reported being "hit by an unknown projectile" at 2 am while it was 37 kilometers northeast of Al Khasab in Oman, the United Kingdom Maritime Trade Operations said.

The UKMTO did not provide further information on the ship, including what flag the vessel was sailing under or whether it was carrying cargo.

The ship suffered damage, according to British maritime security firm Ambrey, which did not elaborate.

The town of Al Khasab sits on the tip of the Arabian Peninsula that juts into the strait, the crucial waterway at the mouth of the Persian Gulf through which a fifth of the world's oil and natural gas passed before the conflict.

Trump said on Monday that talks with Tehran were underway and Iran faced a "last chance" to reach a deal, while Iranian President Masoud Pezeshkian stressed his country does not seek to expand the conflict.

"This is a last chance for them (Iran) to sign a good document," Trump said.

Meanwhile, Pezeshkian reiterated during a speech that Iran will defend its borders, Iranian media reported on Tuesday.

"In these circumstances, we must strive to build a society where the enemy cannot harbor greed, cannot infiltrate and cannot tear apart and destroy this social community," Pezeshkian was quoted as saying by Al Jazeera, citing the Islamic Republic of Iran Broadcasting.

Pezeshkian also denied reports that he had been seeking to resign, saying the claims were aimed at "creating discord" among Tehran's political and military leadership.

Trump said during an executive order signing at the Oval Office on Monday that he expects negotiations on the strait reopening and creating a pathway for Iran to address US concerns about Tehran's nuclear program to begin in the next day or two.

Sticking point

"The first phase is the opening of the strait. The second phase will be the denuclearization," Trump said, adding that "will take a little while".

Meanwhile, US Secretary Scott Bessent said on Tuesday that there could be a deal reached with Iran on the reopening of the Strait of Hormuz by Tuesday or Wednesday.

"We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict," Bessent said in an interview with CNBC.

Trump had slammed Iran's leadership after Tehran rejected US claims that it was holding talks with Washington on Monday. Iran explained that it was only in bilateral talks with Oman focused on reaching an understanding on the safe passage of ships through the strait.

Gulf and Pakistani mediators have been doubling down on diplomatic efforts to bring Iran and the United States back to the negotiating table.

Mediating nation Qatar said on Tuesday efforts for a diplomatic solution between the US and Iran were ongoing but there were no direct talks planned between the two sides.

"We can confirm that the efforts are still ongoing with all parties," Foreign Ministry spokesman Majed Al Ansari told reporters, adding that negotiations were focused on "a short-term resolution that would help us reignite the talks and go back to the mediation efforts in its totality".

Late on Monday, Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar spoke with Iranian Foreign Minister Abbas Araghchi. The two exchanged views on regional and international developments.

During his weekly news briefing on Monday, Iranian Foreign Ministry spokesman Esmaeil Baghaei rejected claims that the traffic in the Strait of Hormuz had been disrupted because of differences between Tehran and Muscat. He said the situation arose because of the US aggression that began on Feb 28.

A senior Iranian source told Reuters on Tuesday that Iran wants control over inbound shipping through the strait and visibility over outbound traffic, with the ability to intervene if necessary, under a temporary plan being discussed with Oman.

Agencies and Cui Haipei in Dubai, UAE contributed to this story.

jan@chinadailyapac.com