President Donald Trump has raised hopes of reviving stalled negotiations to end the Iran war this week, even as a U.S. naval blockade continues to choke the country’s trade lifelines.
Speaking to the New York Post, he urged his team to linger in Islamabad, saying, “You should stay there [Islamabad], really, because something could be happening over the next two days, and we’re more inclined to go there.”
The comments follow the collapse of high-level weekend talks in Pakistan’s capital, where disagreements over Iran’s nuclear programme proved insurmountable. Washington demanded a 20-year suspension of uranium enrichment, according to a U.S. official speaking to CBS News, while Tehran offered just five years.
U.S. Central Command reported no ships breached the blockade of Iranian ports and coastal waters during its first 24 hours, with six merchant vessels turning back on orders. More than a dozen warships and 10,000 troops now enforce the restrictions, targeting Tehran’s oil exports and Strait of Hormuz tolls, which fund over 40% of its budget per IMF estimates.
Iran sealed the strait after U.S. and Israeli strikes on 28 February, a chokepoint for 20% of global oil. BBC Verify data showed four Iran-linked ships and three others crossing despite the curbs.
The two-week truce expires next week amid mounting uncertainty. UN Secretary-General António Guterres called a talks restart “highly probable,” and Reuters sources in Gulf states, Pakistan, and Iran expect delegations to return soon.
Markets steadied on the news, with Brent crude dipping below $100 a barrel on Tuesday, though recession fears linger. The IMF warns the conflict could shave 1-2% off global GDP.
U.S. Treasury Secretary Scott Bessent deemed a “small bit of economic pain” worthwhile for security gains, while China slammed the blockade as dangerous and irresponsible.
Elsewhere, Israel and Lebanon launched direct talks in Washington on Tuesday, their first since 1993, after strikes on Iran-backed Hezbollah. A U.S. official insisted no link exists to the Iran effort.