U.S., Iran remain deadlocked on Hormuz deal as Trump warns Tehran
(Bloomberg) — The U.S. and Iran remained far apart Sunday on negotiations aimed at ending the conflict and reopening the Strait of Hormuz, while a drone strike near a United Arab Emirates nuclear facility underscored ongoing security risks across the Gulf region.
President Donald Trump signaled growing frustration with stalled diplomacy, warning Iran in a social media post that “time is of the essence.”
“For Iran, the clock is ticking,” Trump wrote. “They better get moving, FAST.”
Iranian state-affiliated media reported that negotiations remain deadlocked, with Tehran rejecting several U.S. demands tied to sanctions relief, nuclear material and broader postwar conditions.
At the same time, tensions escalated in the Gulf after a drone attack caused a fire at an electrical generator outside the Barakah nuclear power plant in the UAE. Authorities said the incident caused no injuries or radiological risk, while the International Atomic Energy Agency confirmed radiation levels remained normal.
The UAE said two additional drones were intercepted and an investigation into the source of the attack remains underway.
The ongoing conflict and restrictions on shipping through the Strait of Hormuz continue disrupting global energy flows and supporting elevated oil prices. Brent crude has climbed roughly 50% since the conflict began earlier this year as traders monitor the risk of further escalation and prolonged supply disruptions.
Iranian threats to commercial shipping and ongoing U.S. naval restrictions near Iranian ports have sharply reduced traffic through the strategic waterway, which typically handles about one-fifth of global oil and LNG trade.
Despite the tensions, some vessel traffic has resumed in recent weeks. Iranian officials said authorities are developing a framework that could allow selected commercial vessels to transit Hormuz under controlled conditions.
Trump also said he discussed sanctions on Chinese companies purchasing Iranian crude during meetings last week with Chinese President Xi Jinping.
“I’m going to make a decision over the next few days,” Trump told reporters aboard Air Force One when asked whether sanctions relief was being considered.
China remains Iran’s largest oil customer, and Beijing has continued opposing U.S. sanctions targeting Chinese firms involved in Iranian crude purchases.
The White House faces mounting pressure to stabilize global oil markets while advancing negotiations to reopen Hormuz and reduce broader economic fallout tied to the conflict ahead of U.S. midterm elections later this year.
Iran’s enriched uranium stockpile and continued U.S. naval restrictions remain among the key obstacles preventing a broader agreement between Washington and Tehran.
