President Donald Trump declared the United States would prevail against Iran "one way or another" and predicted the conflict would be resolved "pretty quickly," even as diplomatic efforts appeared to be faltering. Trump confirmed that U.S. negotiators had spoken with Iranian officials through mediators, but rejected Tehran's latest ceasefire proposal, while Iran's government said it has "no plans" to negotiate directly with Washington.

Iran's Foreign Minister Abbas Araghchi, speaking to reporters in New York on the sidelines of the United Nations General Assembly, insisted Tehran had made no changes to its seven-point ceasefire proposal, which calls for a phased reopening of the Strait of Hormuz in exchange for the U.S. meeting conditions outlined in a memorandum of understanding signed in June. Araghchi said Iran had conveyed the plan through Qatari intermediaries and was still awaiting a formal American response. Iranian government spokeswoman Fatemeh Mohajerani separately accused the U.S. of "bullying" over air sanctions, saying Tehran had filed a complaint with the International Civil Aviation Organization.

A vessel was struck by a suspected projectile while transiting the Strait of Hormuz late Monday, according to the U.K. Navy's Maritime Trade Operations center. The fire aboard the ship was extinguished and the crew was reported safe, though no country claimed responsibility for the strike. The incident is among the latest in a series of attacks on vessels using the waterway, which connects Persian Gulf energy producers to international markets.

Iran's Islamic Revolutionary Guard Corps announced Tuesday it is developing new weapons to defend the country, while the value of Iran's currency fell to a new record low, with traders in Tehran exchanging more than 2.5 million rials for a single U.S. dollar. That figure marked a further decline from the previous record of 2.4 million rials to the dollar set just one day earlier, underscoring the mounting economic toll of the conflict on the Iranian population and government. The IRGC's weapons announcement signals Iran is preparing for a range of military contingencies even as diplomatic channels remain nominally open.

The breakdown in direct negotiations raises the risk of further escalation in a conflict that has already disrupted global shipping through one of the world's most critical maritime chokepoints. With Trump ruling out Iran's ceasefire terms and Tehran refusing direct talks, the path to a negotiated resolution remains unclear. The situation continues to reverberate in global markets, with Australian Treasurer Jim Chalmers citing Middle East instability as a key driver of inflation pressures in his country.