Iran warns no final deal talks as tanker fire erupts near Strait of Hormuz

Iranian Foreign Minister Abbas Araghchi said Monday that talks on a final deal with the United States cannot begin while threats continue, as a tanker caught fire near the Strait of Hormuz off Oman's coast.

The warning came as funeral ceremonies for late supreme leader Ali Khamenei continued across Iran and reports emerged of missile strikes on commercial ships.

Is the Strait of Hormuz still open?

Yes, the Strait of Hormuz remains open to traffic, though tensions in the waterway are rising. A tanker caught fire Monday near Limah, Oman, after being struck by an unidentified projectile. Iran has said it will not return to pre-war shipping arrangements and has warned vessels to use only its approved coastal corridor.

What did Iran's foreign minister say about the final deal?

Araghchi said millions of "proud Iranians rallied in unity" to honor Khamenei's legacy following his death. He said "neither them nor our brave armed forces are moved by any threats." Referring to a memorandum of understanding signed with the United States, he cited paragraph 13, saying talks on a final deal will not start while threats persist and urged Washington to "honor your signature."

His comments followed President Donald Trump's statement Monday that the United States would either reach a deal with Iran or "finish the job." The exchange highlights the fragile state of diplomacy despite an existing ceasefire and ongoing efforts toward a lasting agreement.

What happened to the tanker near Oman?

The United Kingdom Maritime Trade Operations said an unknown projectile struck an oil tanker off Oman's coast Monday, sparking a fire. The incident occurred about eight nautical miles east of Limah, near the Strait of Hormuz. The agency reported no casualties or environmental damage and advised vessels to transit with caution.

Axios reported late Monday, citing two unnamed U.S. officials, that Iran had fired at least two missiles at commercial ships and that a second vessel sustained significant damage. The report could not be independently verified, and the Pentagon did not immediately respond to a request for comment. The incident occurred despite the ceasefire between Washington and Tehran.

Why does the Strait of Hormuz matter for global oil supply?

The Strait of Hormuz sits between Iran and Oman and links Gulf energy producers to international markets, especially in Asia. The U.S. Energy Information Administration says about 20 million barrels of crude oil passed through the waterway daily in 2024, roughly one-fifth of global supply. Iran previously blockaded the strait during its conflict with the United States, prompting retaliatory strikes from Washington.

Maritime traffic resumed after the two countries signed a memorandum of understanding last month aimed at reopening the route.

What is happening at Khamenei's funeral?

Funeral prayers for Khamenei and four family members were held at the Jamkaran Mosque outside Qom, according to Tasnim news agency. State television said his body arrived in Qom on Monday evening after a large funeral procession in Tehran. The four family members were killed alongside Khamenei in the February strike.

Iranian President Masoud Pezeshkian, Araghchi and other senior officials attended the Tehran procession. Similar ceremonies are planned in Najaf and Karbala, Iraq, on Wednesday, before Khamenei's coffin returns to Mashhad for burial on Thursday. Iran's emergency services chief, Jafar Miadfar, said no deaths had been recorded during the gatherings.

The absence of Khamenei's son and successor, Mojtaba Khamenei, remained a focus of the ceremonies. Iranian officials say he was wounded in the February airstrike, and he has not appeared publicly since his appointment. It remains unclear whether he will attend upcoming events.