U.S. redirects 55 vessels under Iran blockade as Trump says he can wait

U.S. military enforcement around Iran remained active last week, with U.S. Central Command saying American forces had redirected 55 commercial vessels as of Sunday, up from 35 as of Aug. 2, while also disabling two ships and boarding two. The higher tally signaled continuing pressure as efforts to reopen the Strait of Hormuz stayed deadlocked. President Donald Trump told Axios Washington was "low keying it" and "only semi-negotiating" with Iran while watching the country's inflation and financial strain. Iranian Foreign Minister Abbas Araghchi said Tehran was not in direct negotiations with the U.S. to end the war and reopen the Strait of Hormuz, adding that messages were being exchanged through intermediaries. The diplomatic impasse added to risk across regional markets. Brent crude futures rose nearly 0.2% to $83.7 a barrel, while West Texas Intermediate edged up to $78.21 as traders restored some war premium after optimism over a Hormuz agreement faded. The wider fallout was also in focus for Europe, which imports much of its oil and gas. Western Europe recorded its hottest June-July period on record, with the Copernicus Climate Change Service putting the two-month average at 21.62°C, above the 2022 benchmark. Germany's final July inflation reading due Wednesday is expected to confirm a preliminary 2.8%, up from 2.6% in May and 2.3% in June, while U.K. second-quarter GDP due Thursday is expected to show annual growth of 1.1% and quarter-on-quarter growth of 0.4%, slowing from 0.6% in the first quarter. Separately, Israeli Prime Minister Benjamin Netanyahu restated his rejection of President Donald Trump's latest Gaza plan, saying Israel would not withdraw its military until Hamas is disarmed, even after Trump said last month there had been a breakthrough.

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