The United States has imposed a blockade on Iran's Strait of Hormuz, with Pentagon chief Pete Hegseth declaring no ship may transit the strait without US Navy permission. Defence Secretary Hegseth and Gen Dan Caine confirmed the US military has turned around 34 ships as of Friday, interdicting vessels of any nationality heading to or from Iranian ports. Hegseth signalled no urgency for a diplomatic deal, saying Iran still has an open window to abandon its nuclear weapons programme in verifiable ways. Shipping company Hapag-Lloyd said one of its vessels did cross the strait, though it offered no details on timing or circumstances. Four of its ships remain stranded in the Gulf. The blockade is squeezing global fuel supply, as the Strait of Hormuz is one of the world's most critical oil and gas shipping corridors. EU leaders meeting in Cyprus alongside counterparts from Lebanon, Egypt, Syria, Jordan, and the Gulf Cooperation Council pushed for an immediate reopening. European Council president Antonio Costa called freedom of navigation through the strait vital for the entire world. French President Emmanuel Macron urged Europe to do more to end the crisis. Switzerland, which represents US interests in Iran, has begun reopening its Tehran embassy after closing it on March 11. Four staff have returned, restoring a diplomatic back-channel between Washington and Tehran.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
