The Strait of Hormuz remained blocked and ship traffic hit a three-month low as peace talks between the United States and Iran stalled over the terms of ending their five-month war, according to a CNBC analysis of trade data and statements from government officials.
U.S.-Iran Peace Talks Stagnate Over Interim Agreement Terms
Negotiations to revitalize an interim peace deal reached in June have broken down, according to a senior Iranian government official who spoke to Reuters on Wednesday. The official stated that the United States violated the interim agreement 48 hours after it was reached and withdrew days later, leaving no progress on establishing a timeframe to implement commitments. This report contrasts with an earlier statement from Turkey’s Anadolu news agency, which cited Pakistani sources claiming both nations agreed to extend a 60-day ceasefire. Both Washington and Tehran have accused each other of breaching their Memorandum of Understanding, leading U.S. President Donald Trump to declare the deal “over” at last month’s NATO summit.
Strait of Hormuz Traffic Drops to Three-Month Low Amid Competing Claims
Vessel transits through the critical shipping lane sat at a five-day average of roughly 13 ships on Tuesday, marking the lowest level since May 12, according to data from trade intelligence firm Kpler analyzed by CNBC. This current volume represents a 90% drop compared to the daily average of 130 ships before U.S. and Israeli strikes on Iran began on February 28. Despite the drop, U.S. leadership maintains a different assessment. President Trump asserted in a Truth Social post that the U.S. holds “total control” over the Strait of Hormuz and stated, “I THINK WE WILL KEEP IT!” In response, Iranian Foreign Minister Seyed Abbas Araghchi posted on X that Washington suffers from “intelligence failures,” while Iran’s Persian Gulf Strait Authority maintained that the waterway remains blocked until Iranian conditions are met.
Did you know? Before the conflict escalated in February, an average of 130 ships transited the Strait of Hormuz daily, making it one of the most vital chokepoints for global energy supplies.
Escalating Demands and Military Retaliation Drive Attrition Strategy
Both governments have hardened their stances by demanding war reparations, sanctions relief, and troop withdrawals. Following commercial shipping attacks in the Strait of Hormuz and subsequent vessel incidents in the Gulf of Oman and the Red Sea, U.S. forces launched retaliatory strikes on Iranian targets. Meanwhile, Mohammad Reza Naqdi, a top advisor to the commander of Iran’s Islamic Revolutionary Guard Corps, told PBS on Tuesday that Washington’s strategy lacked direction. Naqdi described American military actions as confused and stated that Iran’s objective is to attain deterrence through a war of attrition that imposes continuous costs on attackers.
Frequently Asked Questions
What is the current status of the Strait of Hormuz?
Ship traffic through the waterway is near a three-month low, averaging about 13 transits per day according to Kpler trade data. Iran insists the strait remains blocked, while U.S. officials claim control over the route.
Why did the June interim peace deal fail?
Senior Iranian officials state the U.S. violated the agreement shortly after it was signed. Both nations have traded accusations of breaching their Memorandum of Understanding.
How much has shipping traffic dropped?
Transits are roughly 90% lower than the pre-conflict daily average of 130 ships recorded before February 28, according to CNBC’s analysis of Kpler data.
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