US says blockade completely halted Iran’s sea trade

The US military said it had brought Iran’s seaborne trade to a standstill, even as President Donald Trump signaled that diplomacy with Tehran could restart as soon as this week to try to end the war.

Mr Trump said US and Iranian officials could be back at the table in Pakistan within the next two days, while Vice President JD Vance, who led weekend negotiations that failed to produce a breakthrough, said he remained encouraged by the current state of play.

“I think you’re going to be watching an amazing two days ahead,” Mr Trump told ABC News reporter Jonathan Karl, adding that he did not expect it would be necessary to prolong the two-week ceasefire due to expire on 21 April.

“It could end either way, but I think a deal is preferable because then they can rebuild,” Mr Trump said, according to a post by Mr Karl on X.

Officials in Pakistan, Iran and the Gulf also said US and Iranian negotiating teams could head back to Pakistan later this week, though one senior Iranian source said no date had yet been fixed.

Watch: Maritime tracking data shows traffic in Strait of Hormuz during blockade compared with traffic before start of war

For all the upbeat rhetoric, the US blockade on Iranian ports appeared to be tightening, with additional vessels turned away, including the US-sanctioned, Chinese-owned tanker Rich Starry, which was heading back toward the Strait of Hormuz on Wednesday after leaving the Persian Gulf.

Admiral Brad Cooper, who leads US Central Command, said American forces had shut down all economic trade moving in and out of Iran by sea, a channel he said accounts for 90% of Iran’s economy.

“In less than 36 hours since the blockade was implemented, US forces have completely halted economic trade going into and out of Iran by sea,” Mr Cooper said in a post on X.

Trump says US negotiators likely to return to talks

Earlier, the US military said it had intercepted eight Iran-linked oil tankers since the blockade began on Monday, the Wall Street Journal reported.

Speaking to the New York Post yesterday, Mr Trump said his negotiators were likely to return, crediting Pakistan’s army chief, Field Marshal Asim Munir, with doing a “great job” in helping moderate the talks.

Later yesterday, speaking at an event in Georgia, US Vice President JD Vance said Mr Trump was seeking a “grand bargain” with Iran, but cautioned that deep mistrust still ran between the two countries.

“You are not going to solve that problem overnight,” he said.

Fresh signs of diplomatic movement over the conflict, which began on 28 February, helped steady oil markets and pushed benchmark prices lower for a second straight day today.

Asian stocks moved higher, while the safe-haven dollar found some stability after sliding for a seventh consecutive session overnight.

The war has led Iran to effectively close the Strait of Hormuz, a vital artery for global crude and gas shipments, disrupting flows from the Gulf to buyers around the world, especially in Asia and Europe.

About 5,000 people have been killed in the fighting, including about 3,000 in Iran and 2,000 in Lebanon.

Trump said yesterday he did not believe there would be any need to extend the two-week ceasefire

Negotiations bog down over US concerns about Iran nuclear plans

Iran’s nuclear ambitions remained one of the central obstacles in the weekend negotiations.

The US proposed a 20-year suspension of all Iranian nuclear activity, while Tehran put forward a pause lasting between three and five years, according to people familiar with the proposals.

Speaking in Seoul, International Atomic Energy Agency head Rafael Grossi said the duration of any moratorium on Iranian uranium enrichment would be a political choice, and that Tehran could accept a compromise as a confidence-building measure.

The US has also pushed for any enriched nuclear material to be taken out of Iran, while Tehran has insisted that international sanctions be lifted.

One source involved in the Pakistan negotiations said back-channel contacts since the weekend had narrowed that divide, bringing both sides closer to a possible agreement that could be presented at a fresh round of talks.

Still, hopes for peace have been complicated by Israel’s continued strikes in Lebanon targeting Hezbollah.

Israel and the US say those operations fall outside the ceasefire, but Iran maintains that they do not.

Yesterday, the UK, Canada, Japan and seven other countries condemned the killings of UN peacekeepers in Lebanon and called for “an urgent end to hostilities”.

The statement followed the deaths of three Indonesian peacekeepers last month.

The countries also welcomed the ceasefire agreed by the US, Israel and Iran.