Iran official: No talks with US underway, Strait of Hormuz conditions remain

Comments from both Rubio and Rezaei suggest no agreement is imminent, indicating a potential return to economic warfare. This would see the US trying to isolate Iran while Iran, supported by Yemen's Houthis, seeks to lift oil prices.

The outcome hinges on Iran's ability to disrupt shipping through the Strait of Hormuz. French President Macron has discussed improving insurance rates in the region. The volume of oil and other goods bypassing the Gulf through alternative routes remains uncertain.

Public statements from figures like Rezaei and Rubio may carry limited weight, however.

Rezaei stated:

• The Strait of Hormuz will remain closed until the US meets Iran's seven conditions
• All US claims about ongoing negotiations with Iran are completely false
• We requested a clear US response to our proposals
• The US has yet to provide a clear response, though one might come later

His denial of negotiations is particularly hard to credit, given the numerous reports of flights between Iran and other nations.

West Texas Intermediate crude fell 22 cents to $86.70, though the loss of diplomatic momentum suggests significant upside risk.

Rezaei serves as secretary of Iran's Supreme National Security Council.