Iran live updates: Cargo ship hit in Red Sea, casualties reported, UKMTO says

Oil prices edged higher amid indications that the Strait of Hormuz will remain closed, as negotiations between the U.S. and Iran to end their ongoing war appear stalled.

U.S. oil was trading at about $84, up 2.5%, as of Tuesday morning, while global oil was trading at nearly $90, up 2.3%.

The Strait of Hormuz remains the focus of the U.S.-Iran standoff. There were eight crossings of the strategic waterway on Aug. 10, according to latest data from maritime intelligence firm Kpler.

Traffic through Bab el-Mandeb Strait -- which sits at the southern end of the Red Sea and where commercial shipping has been under fire from the Iran-aligned Houthi rebels in Yemen -- remained stable at 36 confirmed crossings on Monday, according to Kpler.

-ABC News’ Zunaira Zaki

In a pre-taped interview with right wing media outlet "Real America's Voice," President Donald Trump again defended his strategy in the ongoing war with Iran and suggested that Tehran's economic situation is unsustainable.

The president's comments focused on potential economic measures to pressure Iran amid the apparent negotiating stalemate over the Strait of Hormuz. "Just bop along and look how bad they're doing, because they've got 300% inflation, they have no value. Their currency has almost no value. They're not paying their soldiers. Their soldiers are leaving," Trump said.

"So just keep that going because that's not sustainable," Trump said of potential next steps, adding that the U.S. could "hit them really really hard."

"So economically, they are a mess. They can't borrow money. We control their money, what they had, which is a lot. They had a lot, and we have total control of it. I'm their banker," Trump said.

Trump also again denied that the U.S. is struggling with missile munitions shortages. "We're fine" and "we're building them like crazy," he said, though also suggested former President Joe Biden's military aid packages to Ukraine as a reason that munition stocks may be considered low.

The president dismissed concerns about inflation related to the war, suggesting that oil prices and inflation would come down "as soon as it ends."

Trump also claimed that without the war that began in February, Tehran may now possess a nuclear weapon. Iranian officials have long denied any intention to build nuclear arms.

-ABC News' Alex Ederson

When pressed by ABC News' Mary Bruce about what's next for Iran after he rejected their demands, President Donald Trump said, “you'll find out."

Asked if escalation is still on the table, Trump repeated that response, saying, "Well, we have that -- certainly that ability if we want to do that. Yeah, you'll find out."

Trump also repeated his demand for Iran to pay the U.S. back.

Asked when the Strait of Hormuz would open, Trump maintained that it is “open now” and that the U.S. controls it “100%,” though he acknowledged that Iran could “make trouble.”

-ABC News’ Emily Chang, Michelle Stoddart and Fritz Farrow

After Iran released demands of compensation as part of negotiations to end the war, President Donald Trump is responding with his own call for the Iran to pay the U.S., further entrenching the stalemate between the two countries.

Iran Foreign Minister Seyyed Abbas Araghchi said several days ago that the reopening of the Strait of Hormuz was contingent on various conditions, including the U.S. paying Iran “compensation for violations” of the memorandum of understanding.

On Monday, Trump wrote on social media, “I see that Representatives of the Islamic Republic of Iran are asking for compensation for the damage done to them during the last five month Military Conflict (started because, THEY WILL NOT HAVE A NUCLEAR WEAPON), even though it was never mentioned in any of our negotiations or meetings!”

Trump said he is now making the same demand back, writing, “I am likewise demanding compensation from Iran.”

“Additionally, compensation should be paid to the families of the hundreds of thousands of innocent protestors that Iran has killed over the last 50 years, not to mention the 52,000 that have been killed in the last five months,” Trump wrote. “I have instructed my representatives to put this firmly into any, and all, future negotiations.”

-ABC News’ Michelle Stoddart and Emily Chang