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Trump says no US-Iran talks, naval blockade remains in force

Oil prices spiked after the post, then the move faded as markets continued to weigh the US-Iran stalemate alongside Fed tightening risk.

Reported · Written up by our desk · Central Banks

President Donald Trump said on Truth Social that there are no talks or conversations underway or scheduled with Iran, adding that the US naval blockade remains in full force and effect. He also said the Strait of Hormuz is open and operating and that water mines have been removed or detonated, according to Forexlive’s recounting of the post.

The market reaction was initially sharp, with oil prices spiking higher and equities moving back under renewed pressure before the moves were quickly faded. Forexlive linked the early volatility to the US-Iran stalemate.

The outlet said two themes are driving markets, the ongoing US-Iran deadlock and the Fed’s tightening bias. It noted that the conflict keeps inflation risks skewed upward and tends to limit downside in oil prices, while the Fed backdrop offers some minor easing in financial conditions as rate-hike expectations get pushed back.

Forexlive added that since the Fed adopted a tightening bias in June, inflation breakeven rates have stayed relatively stable even after another oil-price spike, a dynamic it described as supportive for the Fed’s credibility despite the war risk. The outlet also said this could align with the FOMC’s hawkish bias and limited forward guidance helping to limit shocks from the US-Iran war.

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