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in brief
- Iran has lifted and then reimposed its own blockade of the Strait of Hormuz, creating economic chaos.
- The US and Iran remain at loggerheads as a second round of peace talks nears.
US President Donald Trump has revealed that an Iranian cargo vessel attempting to breach a blockade has been seized by American forces. In response, Iran has vowed retaliation, casting doubt on the already fragile ceasefire, which is scheduled to last only two more days.
In a related development, Iran has decided against participating in a second round of peace talks, despite President Trump’s caution regarding the possibility of renewed airstrikes.
The maritime blockade, now entering its third week, continues to drive global oil prices higher. Efforts to ease the situation remain stagnant, as Iran has alternated between lifting and reinstating its blockade of the Strait of Hormuz.
On Sunday, Trump stated that US forces had commandeered an Iranian-flagged cargo ship attempting to circumvent the blockade near the Strait.
“We have full custody of their ship and are inspecting its contents!” Trump declared on social media, noting that US troops had disabled the vessel by breaching its engine room.
Iran’s military said the ship had been travelling from China.
“We warn that the armed forces of the Islamic Republic of Iran will soon respond and retaliate against this armed piracy by the US military,” a military spokesperson said, according to state media.
Iran’s state news agency reported Iran had rejected new peace talks, citing the ongoing blockade, the US’ shifting positions, and “excessive demands”.
Trump had earlier warned Iran that the US would destroy every bridge and power plant in Iran if they rejected his terms, continuing a pattern of such threats throughout the war.
Iran has said that if the US were to attack its civilian infrastructure, it would hit power stations and desalination plants of Gulf Arab neighbours.
Pakistan, which has served as the main mediator, appeared to be preparing for peace talks between the two countries.
Peace talks
Trump said his envoys would arrive in Islamabad on Monday evening, one day before a two-week ceasefire ends.
A White House official had said the US delegation would be headed by US vice president JD Vance, who led the war’s first peace talks a week ago and also include Trump’s envoy Steve Witkoff and son-in-law Jared Kushner.
Two giant US C-17 cargo planes landed at an air base on Sunday afternoon, carrying security equipment and vehicles in preparation for the US delegation’s arrival, two Pakistani security sources said.
Municipal authorities in the capital city of Islamabad halted public transport and heavy-goods traffic.
Barbed wire was rolled out near the Serena Hotel, where last week’s talks were held. The hotel has told all guests to leave.
The apparent diplomatic setback could set the stage for a renewed surge in oil prices when markets reopen after the weekend.
Now in its eighth week, the war has created the most severe shock to global energy supplies in history, sending oil prices surging because of the de facto closure of the strait.
Thousands of people have been killed by US-Israeli strikes on Iran and in an Israeli invasion of Lebanon conducted in parallel since the war began on 28 February. Iran responded to the attacks with missiles and drones against its Arab neighbours that host US bases.
Iran’s chief negotiator, Mohammad Baqer Qalibaf, had earlier said the two sides had made progress but were still far apart on nuclear issues and the Strait of Hormuz.
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