Wednesday 19 August 2026 07:30 UTC
US-Iran Talks End as Hormuz Crisis Drives Oil and Yields Higher
In the 24 hours ending 19 August at 07:30 UTC, Donald Trump, the US president, ordered an end to diplomatic talks with Iran. He told his administration to seek Iran’s surrender through maximum economic pressure.
Iran told mediators it would not accept a ceasefire but wanted the war to end. Qalibaf, Iran’s top negotiator, said Hormuz would remain closed until Washington accepted interim deal conditions.
Trump declared the Strait of Hormuz new US territory. He claimed the waterway was open and all mines had been removed. Iran rejected his claim as a delusion.
The UAE said Iran launched two ballistic missiles toward its coast. One landed inside UAE territorial waters, and the other landed outside. Iran denied responsibility and warned about operations designed to blame Tehran.
The UAE then suspended all trade and financial dealings with Iran. The UAE had been Iran’s second-largest trading partner.
The Pentagon is considering moving some US forces away from the Persian Gulf. Iranian attacks exposed weaknesses at major American bases. No final decision has been made.
Israel confirmed four strikes on the runway at Abu al-Duhur Air Base in Syria. Israel said it wanted to stop Turkey from establishing a military base there. Turkey denied having forces at the site.
Ukrainian drones hit a Russian military storage depot near Sevastopol in occupied Crimea. The attack started a large fire. Ukraine also continued attacks against bridges behind Russian front lines.
A drone exploded at a bus stop used by workers from the Zaporizhzhya nuclear plant. One person died, three suffered serious injuries, and 12 others were hurt.
An uncrewed cargo vessel was struck several times near Yemen in the Bab al-Mandab Strait. The damage left the vessel beyond economic repair.
Oil prices rose as hopes for a US-Iran agreement faded. US diesel refining margins passed $100 per barrel for the first time.
Higher oil prices also pushed government borrowing costs upward. The US ten-year Treasury yield reached 4.75%, its highest level in 19 months. The Nasdaq fell 1.3%, while the S&P 500 lost 0.7%.
US housing starts fell 12.4% in July. Pending home sales also fell as high mortgage rates and record prices hurt demand.
UK inflation rose to 2.9% in the year to July. Germany also paid its highest 30-year borrowing cost since 2011.
Several independent US oil producers were expected to sign production contracts with Venezuela’s state oil company. About half of Venezuela’s oil output now goes to the United States.
Anthropic, the company behind the Claude AI system, is preparing a credit facility worth over $10 billion. The company may seek a stock market listing as soon as this autumn.