Dubai/Washington, Aug. 4 (SANA)An attack on a vessel near theStrait of Hormuzand a rebound in oil prices on Tuesday highlighted uncertainty over whether the United States and Iran are moving closer to a diplomatic settlement, as Tehran denied U.S. President Donald Trump’s claims thatnegotiationswere underway.

Oil pricesrose nearly 3% after a sharp decline in the previous session, as investors reassessed expectations for a diplomatic breakthrough. The United Kingdom Maritime Trade Operations (UKMTO) said a cargo vessel reported being hit by an unidentified projectile near the Strait of Hormuz off Oman’s coast.

Trump said on Monday that talks withIranwere taking place, warning that they represented a “last chance” for Tehran to reach a deal to end a conflict that has lasted five months. Iran rejected the claim, saying no negotiations with Washington were underway and that no major meetings were planned this week.

Asked by reporters about the status of negotiations,Trumpsaid: “They’re going on right now,” adding that contacts were taking place at the request of Iran, Saudi Arabia, the United Arab Emirates and Qatar, among others.

“It’s a last chance for them (Iran) to sign a good document,” Trump said.

The comments came after Trump over the weekend canceled what he described as “large-scale attacks” on Iran, repeating a pattern of threatening military action before turning toward diplomacy.

Iranian President Masoud Pezeshkian said Tehran does not want the conflict to expand. State media quoted him as saying: “We defend our borders, but we are not seeking to expand the war.”

Iran has halted most shipping traffic through theStrait of Hormuz, while Washington continues restrictions on Iranian shipping and ports, disrupting a waterway that normally carries around one-fifth of global oil and liquefied natural gas shipments.

Maritime sources told Reuters the vessel hit near Hormuz was a bulk carrier. The sources said the crew abandoned the ship and one sailor was missing.

Traffic through the strait remained limited, with Kpler data showing that six vessels — including three oil tankers and three bulk carriers — crossed Hormuz on Monday, down from seven the previous day. More than 100 vessels typically pass through the waterway each day.

Brent crude futures fell nearly 7% on Monday to a three-week low afterTrump’s optimistic comments on diplomacy, but analysts warned the market reaction may have been premature.

ING analysts said in a note that the scale of the sell-off “appears somewhat excessive” given continued uncertainty, adding that similar situations had previously ended with talks collapsing.

Gulf officials and analysts said Iran is seeking to withstand U.S. pressure by using trade routes, shipping lanes and regional energy infrastructure as leverage to increase the cost of confrontation.

Michael Knights of the Washington Institute said Iran’s main advantage was its ability “to harm countries in the region and the global economy.”

Trump described Iran’s leadership in a Truth Social post on Monday as “incredibly evasive,” saying Tehran had requested a meeting and that further talks were expected “in the near future.”

Sources in Pakistan, which is mediating efforts to end the conflict, said efforts to bring Washington and Tehran back to negotiations were continuing.

“Many things are happening behind the scenes… We are talking to both sides. Our only goal at the moment is to get both sides to at least agree to start talking,” a senior Pakistani security official said.

The latest developments appear to follow a pattern that has emerged since Trump launched “Operation Epic Fury” with Israel more than five months ago, repeatedly threatening military action before stepping back and citing diplomatic efforts.Iran has publicly rejected negotiations with Washington since early July, when a memorandum of understanding signed by the two sides the previous month collapsed in an effort to end the conflict.

Trump has yet to achieve the objectives he outlined at the start of the war, including dismantlingIran’s nuclear program, limiting its ability to attack regional adversaries and creating conditions that would allow Iranians to remove their clerical rulers.

The Strait of Hormuz remains a major point of disagreement. Washington says a June memorandum requires Iran to reopen the vital waterway, while Tehran says the agreement explicitly preserved its authority over maritime traffic through the strait.kA.ABD