Trump says US agreed to Iran's request to continue talks, but ceasefire is over
US-Iran Tensions and Diplomatic Efforts
By Enas Alashray and Steve Holland
CAIRO/WASHINGTON, July 10 (Reuters) - President Donald Trump said on Friday that the United States and Iran had agreed to continue talks despite a recent escalation of hostilities but he flatly declared that the ceasefire reached between the two sides last month was over.
The United States also stepped up demands that Iran stop attacks on ships in the Strait of Hormuz, where recent hostilities have pushed oil prices higher, a politically sensitive issue for Trump ahead of November congressional elections.
Trump's comments came on a day of relative calm at the end of a week of renewed conflict, when three Qatari and Saudi commercial tankers came under fire, prompting the U.S. to hit Iranian sites, and Iran to respond with strikes on U.S. military sites in Gulf states.
No fresh attacks were reported on Friday as regional mediators sought to salvage diplomatic efforts to permanently end a war that began on February 28 with U.S.-Israeli strikes on Iran.
Trump's Announcement and Iran's Response
"The Islamic Republic of Iran has asked us to continue 'talks.' We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!" Trump wrote in a post on Truth Social.
Iran Accepts Qatari Mediator
Iran disputed Trump's interpretation, saying it had not requested talks with the United States, but had agreed to host a Qatari mediator in Tehran, state television reported, citing Iran's Foreign Ministry spokesperson. Qatari negotiators were meeting officials in Iran on Friday to de-escalate tensions and discuss navigation through the Strait of Hormuz, a source with knowledge of the situation told Reuters.
Foreign Minister Abbas Araqchi would visit Oman to discuss arrangements for the safe passage of ships through the Strait of Hormuz, ISNA reported, citing the foreign ministry spokesperson.
US Demands and Military Escalation
The United States is demanding that Iran publicly state it will stop attacks on ships in the Strait of Hormuz and that all lanes will be open to shipping with no tolls, senior U.S. officials said on Friday.
After Washington accused Iranian forces of attacking three tankers in the area, the U.S. struck military sites in Iran in response. Iran then attacked U.S. military sites in Gulf states on Thursday.
At least 17 people were killed in U.S. strikes on six cities in Iran on Wednesday and Thursday, the head of the public relations and information center at Iran's Health Ministry said. He said 115 people were also wounded.
Diplomatic Channels Remain Open
Even so, U.S. officials said conversations between the two countries had been productive in recent days.
"What we're demanding is that the Iranians issue a public statement that acknowledges all channels of the Strait of Hormuz are open and they're not shooting at ships anymore. They're either going to give us that statement or we're not having a good outcome for them," one official said.
Tehran in turn pledged that any breach of commitments by Washington would be met with "reciprocal action," the foreign ministry spokesperson said, according to state media.
That interim deal was meant to pave the way to the end of a conflict now in its fifth month that has killed thousands, throttled worldwide energy supplies and raised fears of a global economic downturn.
Impact on Oil Markets and Regional Stability
Oil Market Turbulence
Renewed fighting in the Gulf has increased the pain for U.S. consumers. After weeks of steady declines, crude oil prices experienced their biggest weekly rise in eight weeks.
U.S. gasoline inventories fell by 1.9 million barrels last week, nearly 10 million barrels below the five-year average, the Energy Information Administration said. Gasoline stocks are running below seasonal norms across all U.S. regions, said Denton Cinquegrana, chief oil analyst at Dow Jones Energy.
Strait of Hormuz: A Critical Chokepoint
The Strait of Hormuz handled about a fifth of global oil and liquefied natural gas shipments before the war. Tehran has since largely taken control of the waterway, forcing a stalemate in its confrontation with the world's most powerful military.
Political and Social Repercussions in Iran
Iran buried its slain Supreme Leader Ayatollah Ali Khamenei on Thursday at the country's holiest shrine in Mashhad, capping a week of funeral processions and rallies.
Khamenei was killed in an airstrike on the first day of the war on February 28. A condolence ceremony was due to be held on Friday after sunset prayers on behalf of Supreme Leader Mojtaba Khamenei for his father in the city of Qom, his office announced.
Mojtaba Khamenei, who was injured in the strike that killed his father, has not appeared in public, fueling speculation about his role in Iran's future.
Public Sentiment and Leadership Uncertainty
"I understand that, from a security standpoint, he should not appear in public. But the country is going through a very difficult time," said Taghi, 47, a shop owner in Isfahan who asked not to give his family name. "There is a need for the Supreme Leader to be seen."
(Additional reporting Menna Alaa El Din in Cairo, Ahmed Elimam and Eman Abouhassira in Dubai, Andrew Mills in Doha and Jonathan Saul in London; Writing by Alexandra Hudson, Andrew Heavens, Matt Spetalnick and Daniel Trotta; Editing by Philippa Fletcher, Andrew Heavens and Sanjeev Miglani)
