Trump gives Iran ‘last chance’ to strike deal as Hormuz tensions keep oil markets on edge
Trump says Iran has a “last chance” to reach a deal as fresh threats, continued tensions in the Strait of Hormuz and conflicting claims over negotiations keep global oil markets on edge
04 August, 2026
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US President Donald Trump has warned Iran it faces a “last chance” to reach an agreement with Washington, escalating pressure on Tehran even as both sides remain at odds over whether negotiations are taking place.
Speaking at the White House on Monday, Trump said he was prepared to give Iran “every last chance” before what he described as “decapitation”, reiterating his threat of a major military response if diplomacy fails.
“This is a last chance for them to sign a good document,” Trump told reporters, adding that talks were “going on right now” and would “go quickly, one way or the other”.
The remarks came after Iran denied that any direct negotiations with the US were under way.
Iranian Foreign Ministry spokesman Esmail Baghaei rejected Trump’s claims, saying no meetings had been scheduled and that Tehran was not engaged in talks with Washington.
Responding on his Truth Social platform, Trump accused Iran’s leadership of being “unbelievably duplicitous”, claiming they had requested negotiations while publicly denying they were taking place.
“They ask for a meeting… talks begin… and they say they are not having any discussions,” Trump wrote, insisting that “nothing gets through to Iran” unless there is a deal or what he called “total surrender”.
Trump also asserted that the Strait of Hormuz was now “completely controlled” by the US, adding that Iran would not be allowed to charge vessels transiting the strategically important waterway.
Hormuz tensions remain elevated
Despite Trump’s comments, tensions around the Strait of Hormuz remain high.
The UK Maritime Trade Operations (UKMTO) agency on Tuesday reported that a cargo vessel was struck by a projectile approximately 37 kilometres north-east of the Omani port of Khasab. Authorities are investigating the incident, while ships operating in the area have been advised to exercise caution.
Meanwhile, Iranian military adviser Mohsen Rezaei warned the US that its forces would face “serious risks and casualties” if Washington continued enforcing its naval blockade of Iranian ports.
He also said Tehran would “never permit the opening of a second corridor in the Strait of Hormuz”, signalling continued opposition to any alternative maritime arrangements backed by the United States.
The US Central Command (CENTCOM) said it had diverted 44 commercial vessels, disabled two ships and boarded another two since the blockade was imposed on July 14 following the collapse of an interim peace agreement.
Separately, Iranian Foreign Minister Abbas Araghchi held talks with his Omani counterpart, Badr Al Busaidi, on Monday to discuss the latest regional developments, with Oman continuing to play a diplomatic intermediary role.
Oil rebounds after sharp sell-off
Oil prices recovered on Tuesday after suffering their steepest one-day decline in weeks, as traders weighed the prospect of renewed diplomacy against the continuing risk of disruption in the Gulf.
Brent crude rose about 1.3 per cent to $84.89 a barrel, while US West Texas Intermediate gained around 1 per cent to $81.11 after both benchmarks fell sharply on Monday.
Markets initially welcomed Trump’s indication over the weekend that he would delay fresh military action while diplomatic efforts continued.
However, Iran’s subsequent denial that talks were taking place renewed doubts over the prospects for a breakthrough.
Analysts at ING said the previous day’s sell-off appeared excessive given the level of geopolitical uncertainty.
“We’ve been in this situation multiple times before, only to see things unravel,” the bank said in a research note.
The Strait of Hormuz remains one of the world’s most critical energy chokepoints, carrying roughly one-fifth of global oil and liquefied natural gas shipments before the current conflict disrupted maritime traffic.



















