Tehran dismisses Iraq-mediated truce, citing unresolved Strait of Hormuz sovereignty, as vessel traffic plummets to near-zero levels.
Iran has rejected a ceasefire proposal mediated by Iraq and backed by the US, demanding control over the Strait of Hormuz as a precondition. The move stalls negotiations ahead of the weekend, with Tehran labeling the offer a “temporary deal” and refusing to compromise on its stance.
The impasse mirrors a similar deadlock in May, which was resolved in June after prolonged talks. However, Iran’s strategy appears focused on stalling for time, avoiding nuclear concessions while pressuring the US for further compromises. The Strait of Hormuz remains effectively closed, with vessel transits dropping to just three per day since July 20, down from typical volumes.
LNG tanker crossings have halted entirely since July 16, exacerbating disruptions in global energy markets. Dutch TTF natural gas futures have shown volatility amid the uncertainty, though no sustained rally has materialized yet.