FINWIRES · TerminalLIVE
FINWIRES

Trump Says US-Iran Talks Continue; Rubio Says US Prefers Negotiations to Reopen Hormuz

By

President Donald Trump said Tuesday that US-Iran talks are "going on continuously," dismissing media reports that indicate that stated talks were halted.

Trump said in a Truth Social post that reports of a halt in US-Iran communications were "false and erroneous" and that discussions between Washington and Tehran remained ongoing.

"The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today," Trump said.

"Where they lead, one never knows, but as I told Iran, 'It's time, one way or another, for you to make a Deal. You've been doing this for 47 years, and it cannot be allowed to go on any longer'," Trump said, reiterating his call for Tehran to reach an agreement.

Meanwhile, Secretary of State Marco Rubio struck a similar diplomatic tone during a Senate hearing on Tuesday while outlining the administration's conditions for restoring commercial traffic through the Strait of Hormuz.

Rubio said the Trump administration has not discussed sanctions relief for Iran in exchange for reopening the Strait of Hormuz, arguing that any easing of restrictions must remain tied to Tehran's nuclear activities.

"... any sanctions relief is condition-based, which means it has to be in return for the reason why those sanctions were put in place in the first place, which is their nuclear program," Rubio said.

"Iran is being sanctioned because they've highly enriched uranium. Iran is being sanctioned because of their nuclear activities. If they agree to give up those things, there will be sanctions relief associated with their commitment and compliance," Rubio said.

He added that the US would prefer to continue negotiations to reopen the Strait of Hormuz.

"If Iran wants to be able to move its oil again... they will have to reopen the Strait, if they refuse to do so, then we have other options available to us but we would prefer to negotiate," Rubio said.

He added that Iran must reopen the Strait of Hormuz, stop charging transit fees and end threats against commercial vessels before broader negotiations can proceed. "They have to announce very clearly, that straits are now open, we're are not charging a toll, we'll help remove the mines... and they will not fire on ships," Rubio said.

After reopening the Strait, talks would shift to Iran's nuclear program and its stockpile of highly enriched uranium, Rubio said.

"Phase two is... the disposition of the highly enriched uranium that is still very deep in the mountains somewhere," Rubio said, adding that Iran must accept severe long-term limits on uranium enrichment or agree to end the activity altogether.

Rubio said specialists would likely need up to 90 days to work through technical details surrounding Iran's nuclear program if Tehran agrees to proceed.

Rubio said Iran's supreme leader remains alive and is becoming increasingly involved in decision-making, suggesting Tehran's leadership continues to play an active role in ongoing discussions with the US.

On energy markets, Rubio said countries across the Indo-Pacific remain heavily dependent on flows through the Strait of Hormuz and will need time to diversify supplies.

The Strait of Hormuz carries roughly 80% to 90% of the Indo-Pacific's energy supplies, Rubio said, adding that the region will see "more diversification on where they get the energy from, including from the United States."

Asked whether he could commit to not extending a general license tied to Russian oil transactions when it expires on June 17, Rubio said the decision ultimately rests with the Treasury Department.

Rubio said the administration previously approved the temporary measure to help maintain global oil supplies and avoid disruptions that could have pushed energy prices higher, describing the license as a time-limited response to market conditions.

Oil prices rose in midday trading on Tuesday as investors monitored developments in US-Iran negotiations, with Brent crude increasing 1.14% to $96.06 per barrel and US West Texas Intermediate crude gaining 1.83% to $93.85/bbl.

Related Articles

Oil & Energy

US Oil Update: Futures Rally on Conflicting Signals Over Iran Peace Talks

Crude oil futures rose by more than 5% in after-hours trading on Monday as markets weighed reports about Iran's suspension of peace talks with the US, stoking fears of prolonged supply disruption, even as President Trump claimed that the negotiations were ongoing.Front-month West Texas Intermediate crude futures advanced 5.85% to $92.47 per barrel, and Brent futures were up 4.69% to $95.39/bbl.Saxo Bank strategists said crude prices rebounded from a six-week low amid ongoing uncertainty over the prospects for a peace deal to end the war with Iran.On Monday, Iran reportedly said it would suspend indirect communications with the US, and its allied "Resistance Front" was reported to be planning to completely block the Strait of Hormuz and choke other waterways, including the Bab el-Mandeb Strait.However, President Donald Trump pushed back on those reports, saying talks were still ongoing."Talks are continuing, at a rapid pace, with the Islamic Republic of Iran," Trump posted on Truth Social.Earlier in the day, the US President said he was not informed in advance of Iran's decision to halt negotiations and, in phone interviews with US media, dismissed concerns about the suspension."I really don't care. I couldn't care less," Trump reportedly told CNBC.Foreign Minister Abbas Araghchi said that the truce agreement between the US and Iran applies to "all fronts, including in Lebanon," adding that a breach in one area constitutes a violation of the broader arrangement."The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon," Araghchi said, adding that the US-Israeli alliance is responsible for the consequences of any violation.Iran's Speaker of Parliament, Mohammad Baqer Ghalibaf, also said that the US naval blockade of Iranian ports and Israel's renewed attacks in Lebanon will come at a price for Washington and Tel Aviv.The naval blockade and escalation of war crimes in Lebanon by the genocidal Zionist regime are clear evidence of US noncompliance with the ceasefire, Ghalibaf said in a social media post on X.Scotiabank strategists said a prolonged geopolitical conflict involving Iran would tighten global oil markets and generate significant supply disruptions.On the supply side, US crude stockpiles are expected to drop by about 6.2 million barrels in the week ended May 29, Macquarie strategists said in a weekly note on Monday, following a 3.3-mmbbl draw the previous week.Macquarie analysts projected that domestic supply remained flat on a nominal basis, while stocks in the Strategic Petroleum Reserve are estimated to decrease by 8 million bbls.

Oil & Energy

Commodity Boom May Cushion Canada's Economy Amid Rising Oil Prices, Scotiabank Says

Oil prices climbed about $3 per barrel at the start of the week as military tensions between the US and Iran intensified and conflict in the Middle East broadened, Scotiabank strategists said in a Monday note.Analysts said both WTI and Brent crude advanced after the US and Iran exchanged attacks, while Israel expanded military operations in Lebanon, reducing the likelihood of a diplomatic breakthrough.Iran continues to resist demands related to uranium enrichment and control of the Strait of Hormuz, keeping energy markets focused on the risk of supply disruption.A broad commodity rally could support Canada's economy because stronger export prices typically boost national income and economic activity over time.Commodity-producing economies rarely enter recession during periods of widespread strength in resource markets, although positive effects often emerge with a delay.Rising commodity prices could contribute to stronger growth and inflation, factors the Bank of Canada is expected to monitor closely as it assesses future policy decisions.Strategists continue to expect Bank of Canada rate increases later this year, though they now see policymakers delaying tightening until September or later, then extending moves into Q4.Scotiabank previously projected 50 basis points of tightening in the third quarter and another 25 basis points in Q4 before rates reached 3%, but it now favors a later timeline.

Oil & Energy

Market Chatter: Strait of Hormuz Tolls Won't be Allowed, Dynacom Shipowner Says

Greece's Dynacom Tankers Management, one of the few oil tanker owners to continue transiting the Strait of Hormuz during the US-Israel-Iran conflict, rejected the idea of transit tolls in the waterway, saying it would not be accepted, Bloomberg reported on Monday."Nobody will allow tolls that are imposed in straits," George Procopiou, founder of Dynacom Tankers Management, reportedly said at the Capital Link Maritime Leaders Summit in Athens.Procopiou was speaking during the event, held alongside Greece's Posidonia shipping gathering."The freedom of navigation is essential and nobody can impose tolls or any other burden because there are many chokepoints in the world," Procopiou reportedly said.Tehran has argued that such charges are necessary to fund reconstruction following military strikes by US and Israeli forces.The proposal has been rejected by the Trump administration, while the International Maritime Organization has said such tolling would be illegal. The dispute has contributed to persistently reduced traffic through the strait, which remains well below pre-war levels.The Iran conflict has triggered severe disruption to global oil flows, leaving hundreds of tankers trapped inside the Persian Gulf while others waited outside the region in hopes the conflict would subside.Dynacom manages 73 crude and clean oil product carriers, with 54 additional vessels on order and a workforce of 5,500 seafarers.Shortly after the conflict began, tanker day rates spiked above $600,000, Bloomberg said, citing the Baltic Exchange in London, many times higher than pre-conflict levels. The surge lifted profits across the shipping sector but also sharply increased transportation costs for the broader oil industry.While most owners avoided sending vessels through the Strait of Hormuz due to security risks linked to Iran's military, Dynacom continued operations in the waterway and reportedly drew industry attention for doing so.The company sent at least eight oil tankers through the strait during the conflict, more than any other independent owner, Bloomberg said, citing its vessel tracking analysis.Procopiou praised crews operating on vessels that transit the region but provided limited detail on the procedures used to ensure safe passage."[They are] dedicated, they have strong ties to the company, and they have tried to assist and prove that we are reliable counterparties not only on good times, but in bad times as well," he said of the crews serving on ships that continued transiting Hormuz.Procopiou added that President Trump has been "good news" for shipping, "Trump is doing his best for the world but in parallel he's doing the best for shipping."Dynacom Tankers Management did not immediately respond to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)