Iran stops negotiations with U.S., will block Hormuz strait

Iranian negotiators will stop exchanging messages with the U.S. through intermediaries, and Tehran will move to fully close the Strait of Hormuz, in retaliation for ongoing ceasefire violations, Iran’s state-affiliated news outlet Tasnim said Monday.

The report, in a translated post on the social media site Telegram, homes in on Israel’s military operations in Lebanon against the Iran-backed militia Hezbollah.

Oil prices leapt more than 5% higher following Tasnim’s report, which signaled a breakdown in efforts to reach a diplomatic end to the war that is now in its fourth month.

President Donald Trump just three days earlier said he was meeting in the White House Situation Room to decide whether to agree to a deal with Iran that would at least pause the conflict. But that meeting ended without Trump making a final decision.

The White House and U.S. Central Command did not immediately respond to CNBC’s requests for comment on the report.

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