Prospects for peace between the United States and Iran have suffered another setback after US President Donald Trump rejected an extension of a memorandum of understanding due to expire between the two countries.
The agreement, signed in June, was intended to provide a 60-day window for Washington and Tehran to negotiate a lasting peace deal.
However, talks have stalled amid disagreements over Iran’s nuclear programme and control of the Strait of Hormuz.
Trump says the United States has leverage over Iran through its naval blockade and has repeated his call for the Strait of Hormuz to be placed under American control.
Iran has rejected the position and insists it should manage shipping through the strategic waterway.
The tensions have pushed up global oil prices, with Brent crude closing near 91 dollars a barrel.
The benchmark has gained about eight percent since the start of last week, as fears grow that the conflict could further disrupt supplies through Hormuz, a major route for global oil and gas shipments.
Meanwhile, Oman is negotiating with Iran over the management of shipping through the strait, although the United States is not part of those talks.
Iran says a shipping map has been agreed, but negotiations are continuing and a deal may not immediately lead to the reopening of the waterway.
Tensions are also spreading across the region, with Israel carrying out strikes in Lebanon and Gaza, while Houthi attacks have targeted shipping in the Red Sea. Several vessels have also reported attacks in the Strait of Hormuz.
The Trump administration is meanwhile pursuing a separate effort to advance a ceasefire in Gaza.
Trump’s son-in-law and special envoy Jared Kushner has held talks with Israeli and Palestinian officials as Washington seeks progress on the next phase of the Gaza ceasefire.
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