Iran stops negotiations with U.S., vows to 'completely' block Strait of Hormuz: State media

Iranian negotiators will stop exchanging messages with the U.S. through intermediaries, and Tehran will move to fully close the Strait of Hormuz, in retaliation for ongoing ceasefire violations, Iran's state-affiliated news outlet Tasnim said Monday.

The report, in a translated post on the social media site Telegram, homes in on Israel's military operations in Lebanon against the Iran-backed militia Hezbollah.

"No dialogue will take place" until Israel fully withdraws from occupied areas in Lebanon and stops all attacks in both Lebanon and Gaza, per Tasnim.

"Also, the resistance front and Iran have resolved to completely block the Strait of Hormuz and activate other fronts including the Bab al-Mandeb Strait, in order to punish the Zionists and their supporters," the report said.

Oil prices leapt more than 5% higher following Tasnim's report, which signaled a breakdown in efforts to reach a diplomatic end to the war that is now in its fourth month.

President Donald Trump just three days earlier said he would decide at a meeting in the White House Situation Room whether to agree to a deal with Iran that would at least pause the conflict. But that meeting ended without Trump making a final decision.

In the following days, the U.S. and Iran launched new attacks against each other, further eroding the tattered ceasefire that has already been repeatedly ruptured by kinetic military operations.

The White House and U.S. Central Command did not immediately respond to CNBC's requests for comment on the report.