U.S.-Iran War Talks Stall as Hormuz Clashes Resume

CNBC reported Saturday that the United States remains without an answer from Iran on a formal proposal to end more than two months of active warfare. Secretary of State Marco Rubio said Friday he expected Tehran to respond within hours. More than a day later, Iran had said nothing publicly.

Ceasefire Frays Around the Strait of Hormuz

The Strait of Hormuz saw its most serious flare-ups in weeks, even as a fragile ceasefire announced on April 7 technically remains in place. Iranian forces and U.S. naval vessels exchanged fire in the waterway on Friday, according to Iran’s semi-official Fars news agency. The U.S. military confirmed it struck two Iran-linked vessels approaching an Iranian port, forcing them back without sinking them. Iran’s Tasnim agency cited a military source saying calm had returned but warned further clashes were possible.

The UAE also reported renewed Iranian aggression Friday. Abu Dhabi’s air defenses intercepted two ballistic missiles and three drones, leaving three people with moderate injuries. Iran has regularly targeted Gulf states hosting American military bases.

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Background: A War That Has Upended Energy Markets

The conflict began on February 28 with U.S. and Israeli airstrikes across Iran. Since then, Tehran has largely shut non-Iranian shipping out of the Strait of Hormuz. Before fighting broke out, roughly one-fifth of the world’s oil supply transited that narrow passage daily. The U.S. imposed a counter-blockade on Iranian vessels last month. However, a CIA assessment reportedly concluded Iran could withstand that economic pressure for roughly four more months before facing severe strain. A senior U.S. intelligence official disputed the framing of those findings.

President Donald Trump announced “Project Freedom,” an escorted shipping initiative through the strait, then paused it after 48 hours following a sharp Iranian response.

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Sanctions and Diplomacy Run in Parallel

Washington is pursuing pressure alongside outreach. The U.S. Treasury announced sanctions Friday against ten individuals and entities, including several based in China and Hong Kong. The targets allegedly helped Iran’s military acquire components for its Shahed drone program. Treasury signaled readiness to impose secondary sanctions on foreign financial institutions, a warning directed squarely at Chinese independent oil refiners.

Trump departs next week for China to meet President Xi Jinping, adding urgency to resolving the standoff. European allies, including German Chancellor Friedrich Merz, expressed support for denying Iran nuclear weapons but stopped short of backing Washington’s military posture in the strait.

Iran’s foreign minister accused the U.S. of choosing military action over diplomacy each time a deal draws near.

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