US-Iran Conflict Escalates as Oil Prices Rebound Amid Uncertainty

An attack on a vessel near the Strait of Hormuz has raised concerns that a resolution to the US-Iran conflict may not be imminent, despite President Donald Trump's assertion that talks are underway.

The incident occurred as oil prices rebounded nearly three percent after a steep selloff in the previous session, underscoring doubts about the prospects for diplomacy. The attack on the dry bulk ship was reported by maritime sources, who said the crew had to abandon the vessel and one seafarer is missing.

Traffic through Hormuz remained slow, with only six vessels transiting the strait on Monday, down from seven the previous day. This has disrupted a critical corridor that normally carries about a fifth of global oil and liquefied natural gas shipments.

Trump had said on Monday that talks with Tehran were under way and Iran faced a 'last chance' to reach a deal, but Iranian officials insisted no negotiations with the US were taking place. They claim their only talks are with Oman about the Strait of Hormuz, and no major meetings are planned this week.