Military Activity In Hormuz Remains Subdued As U.S. Maintains Economic Pressure On Iran. Oil Drops Again.

Oil prices continue to fall on Tuesday after the chairman of the Iranian Parliament's Foreign Relations Committee said the U.S. asked a Pakistani delegation to encourage Iran to return to peace talks.

Brent crude, the international benchmark, dropped almost 3% at 9:52 a.m. on Tuesday and stood below $87.90 a barrel, while West Texas Intermediate, the U.S. benchmark, fell further, declining 3.21% and clocking in at $82.34 at the same time. The drop happened even though an oil tanker was struck and disabled in the Strait of Hormuz off the coast of Oman.

Golrou said Pakistani Army Chief Field Marshal Asim Munir delivered a message from Washington seeking a return to talks.

"The Americans asked the Pakistanis to speak with the Iranian side so that Iran enters the political space and they can move forward together," Golrou said, according to Iran's state-run ISNA News Agency.

"On behalf of the United States, Asim Munir sent a message to Iran that Iran should return to the memorandum of understanding," he added.

Elsewhere, Iranian Supreme National Security Council Secretary Mohsen Rezaei called on the U.S. to return to the memorandum, saying "America must change its behavior and take practical steps regarding the implementation of the conditions of the memorandum of understanding."

However, the U.S. is currently doubling down on economic pressure against the country. Treasury Secretary Scott Bessent on Monday unveiled a plan to impose secondary sanctions on those "enabling" Iran to maintain its economic activity.

Bessent said the plan is called "Operation Economic Outcast" and appeared to say China could be reached by the measures.

"We want to make clear here today that no one is above the reach of U.S. sanctions," he said when asked if the measures could impact Chinese banks or the Trump administration would refrain from doing so to preserve relations with China.

"If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted," he added. Chinese President Xi Jinping is set to meet with President Donald Trump in September.

China reacted to the development on Tuesday, with a foreign ministry spokesperson saying the country will "firmly safeguard its own rights and interests."

"China has already stated many times that it firmly opposes illegal unilateral sanctions ... China will take all necessary measures to firmly safeguard its own rights and interests," said Lin Jian.