US Says Strait of Hormuz Incidents Won’t Threaten Iran Talks

The U.S. government said recent incidents in the Strait of Hormuz will not affect negotiations between Washington and Tehran. Markets are watching both rising tensions in the Middle East and the course of diplomacy.

Walter Bloomberg reported on May 28 that a U.S. official said the recent events in and around the Strait of Hormuz do not threaten talks between the U.S. and Iran.

Military tensions between the U.S. and Iran have persisted around the Strait of Hormuz. The U.S. is conducting operations to protect commercial vessels, while Iran’s Islamic Revolutionary Guard Corps, or IRGC, has emphasized its authority to approve merchant shipping transit and control the waterway.

Even so, the two sides are continuing negotiations that include extending a ceasefire, normalizing traffic through the strait and limiting Iran’s nuclear program. The U.S. is seeking the full reopening of the waterway and guarantees of freedom of navigation. Iran is demanding sanctions relief and recognition of its control authority.

Markets are also assessing whether the outcome of U.S.-Iran talks could drive volatility across global financial markets, including oil prices and the dollar. Key differences remain over limits on uranium enrichment and the scope of sanctions relief.