Iran Pauses Indirect Talks with U.S. and Threatens to Block Strait of Hormuz

June 1. Iran’s semi-official Tasnim news agency reported that Iran has decided to suspend all indirect talks and text exchanges with the United States via intermediaries, citing Israel’s recent escalation of military operations in Lebanon and the Gaza Strip. The outlet said Tehran is demanding Israel immediately halt its military actions in Gaza and Lebanon and fully withdraw from all occupied Lebanese territory before any negotiations can resume, adding Iran will not restart talks until those conditions are met. Separately, Iran and the so-called “Resistance Front” have reportedly resolved to completely block the Strait of Hormuz, and have warned they could open additional fronts—including the Strait of Mandeb—as retaliatory steps. In the wake of the announcement, global oil prices spiked sharply during trading hours: both West Texas Intermediate (WTI) and Brent crude rose more than 4% at their peak, the U.S. Dollar Index hit a daily high, and U.S. Treasury prices declined. Iranian Foreign Ministry spokesman Baghaei stated that the slow progress in U.S.-Iran negotiations stems from a lack of mutual trust, shifting positions from the U.S. side, and Israel’s ongoing military activity across the region. He emphasized that to drive comprehensive de-escalation of regional conflicts, ceasefire arrangements in Lebanon must be implemented simultaneously. Additional reports note that Yemen’s Houthi forces are awaiting a call to action from Lebanon’s Hezbollah group. If Israel further escalates its military actions in Lebanon, the Houthis are prepared to resume airstrikes and maritime strikes against Israel.