US shuts down Iran's maritime trade despite optimism for more talks

The United States said on Wednesday its military had completely halted trade going in and out of Iran by sea, ‌while President Donald Trump said talks with Tehran on ending the war could resume this week, sending oil prices down for a second day.

Trump said negotiations between US ​and Iranian officials could resume in ⁠Pakistan in the next two days and Vice President JD Vance, who led weekend talks that ended without a breakthrough, said he felt ‌positive about where things stood.

"I think you’re going ‌to be watching an amazing two days ahead," Trump told ABC News reporter Jonathan Karl, adding he did not think it would be necessary to extend a two-week ceasefire that ends on April 21. "It could end either way, but I think a deal is preferable because then they can rebuild," Trump said, according to a post by Karl on X. "They really do have a different regime now. No matter ‌what, we took out the radicals."

Officials from Pakistan, Iran and the Gulf also said negotiating teams from the US and Iran could return to Pakistan later this week, although one senior ⁠Iranian source said no date had been set.

Despite the optimistic note, more vessels were being turned back under the US blockade on Iranian ports, including a US-sanctioned and Chinese-owned tanker Rich Starry that was making its way back to the Strait of Hormuz on Wednesday after exiting the Persian Gulf.

Admiral Brad Cooper, the head of the US Central Command, said American forces had completely halted economic trade going in and out of Iran by sea, which he said fuels 90% of Iran's economy.

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

Earlier the US military said it had intercepted eight Iran-linked oil tankers since the ​start of the blockade on Monday, according to the Wall Street Journal.

Return to Islamabad

Trump, speaking to the New York Post on Tuesday, said his negotiators are likely ‌to be back, thanks largely to the "great job" Pakistan's army chief, Field Marshal Asim Munir, was doing to moderate the talks.

Later on Tuesday, at an event in Georgia, US Vice President JD Vance said Trump wanted to make a "grand bargain" with Iran but there was a lot of mistrust between the two countries.

"You are not going to solve that problem overnight," he said. The signs of diplomatic engagement ⁠to end the conflict that began on February 28 helped calm oil markets, pressing benchmark prices below $100 for a second day on Wednesday. Asian stocks rose while the safe-haven dollar stabilised after falling for a seventh straight session overnight.

Reuters