US-Iran standoff deepens, energy risks mount

On May 22, 2026, negotiations between the United States and Iran delivered only limited progress, with both sides still sharply divided over Tehran’s enriched uranium stockpile and control of the Strait of Hormuz. While some officials pointed to incremental movement, the central issues remained unresolved.

US Secretary of State Marco Rubio said there were “some good signs” in the latest round of discussions. However, a senior Iranian source told Reuters that no agreement had been reached so far, noting that although gaps had narrowed in recent days, they continued to block a breakthrough.

President Donald Trump toughened Washington’s public position during the latest phase of talks. He said the United States would eventually seize Iran’s highly enriched uranium stockpile, stating, “We will get it. We don’t need it, we don’t want it. We’ll probably destroy it after we get it.”

Trump also rejected any Iranian attempt to impose fees or restrictions on vessels transiting the Strait of Hormuz, calling it “an international waterway” that must remain “open” and “free.” His comments underscored Washington’s refusal to accept Tehran’s bid for expanded control over the critical chokepoint.

Tehran submitted a fresh proposal to Washington this week that reportedly seeks broad concessions. The plan includes Iranian control over the Strait of Hormuz, compensation for war-related damages, sanctions relief, the release of frozen Iranian assets, and the withdrawal of US troops from the region.

Regional actors are attempting to ease tensions and support the diplomatic process. Pakistan Army Chief Asim Munir was expected to travel to Tehran as part of renewed mediation efforts aimed at streamlining channels of communication between the parties.

Shipping through the Strait of Hormuz has dropped sharply amid the standoff. Iranian state media reported that only 31 ships transited the waterway in the past 24 hours, compared with a pre-conflict daily average of more than 125 ships, highlighting the scale of disruption on a route vital to global energy supplies.

The International Energy Agency warned that the tensions have already triggered one of the world’s worst energy shocks. It cautioned that fuel markets could enter a “red zone” during peak summer demand in July and August, underscoring the risk that prolonged uncertainty over the US-Iran dispute could further strain global energy and inflation dynamics.