Peace Talks in Limbo Over US Seizure of Iranian Cargo Vessel

The ceasefire between the United States and Iran is at risk after an Iranian cargo ship was seized while trying to break a U.S. Navy blockade of its port.

Iran said on Monday it had no plans to join a new round of talks with the United States, casting doubt on efforts to prevent a renewed war in the Middle East.

U.S. President Donald Trump said he would send negotiators to Pakistan for talks to end the war engulfing the region and roiling global markets, while renewing his threat to attack Iran’s energy infrastructure if it doesn’t reach a deal.

See also: Oil falls, markets rise after Iran says Strait of Hormuz open

back Preliminary talks in Islamabad earlier this month failed to reach an agreementBoth sides accuse each other of ceasefire violations, including the U.S. seizure of an Iranian cargo ship early Monday that Trump said was trying to evade a U.S. blockade of the country’s ports.

“We have no plans for the next round of negotiations and have not made any decisions on this,” Foreign Ministry spokesman Esmaeil Baqaei said.

He added: “Although the United States claims to adopt diplomatic means and is ready for negotiations, its actions do not at all indicate that it is serious about pursuing a diplomatic process.” He called the U.S. blockade and seizure of cargo ships “a clear violation of the ceasefire agreement.”

‘Blockade violates ceasefire’

Iran said the U.S. blockade and attacks violated a two-week truce due to end on Tuesday night and threatened retaliation, while Trump said Tehran was violating a ceasefire in the crucial Strait of Hormuz, which has been all but closed.

The counterclaims cast new doubts about efforts to end the war. The war began with a U.S. and Israeli attack on Iran on the morning of February 28, killing the country’s supreme leader Ali Khamenei.

“We offered a very fair and reasonable deal, and I hope they accept it,” Trump said in a social media post.

Oil prices surged on Monday after Iran closed the Strait of Hormuz again over the weekend after briefly reopening it on Friday to recognize a ceasefire in Lebanon, amid concerns that a weeks-long war could re-ignite.

Most Asian markets edged higher on Monday, but U.S. and European stocks later fell as oil prices surged on worries that hostilities could resume.

As of the time of writing (13:57 GMT), Brent crude oil prices are $95 per barrel and WTI crude oil prices are $88 per barrel.

The U.S. team will arrive in Islamabad on Monday night

Islamabad has stepped up security despite uncertainty over negotiations with Pakistan.

Authorities announced road closures and traffic restrictions across the city and in neighboring Rawalpindi.

The US president said his negotiators, who he did not name, would arrive in Islamabad on Monday evening.

A White House official said Trump said he would not lead the delegation, citing security concerns, but that Vice President Vance would lead the delegation. The official said he will be joined by Middle East envoy Steve Witkoff and Trump’s son-in-law Jared Kushner.

Trump has been under pressure to find an exit ramp since Tehran moved to block the Strait of Hormuz.

But attacks on cargo ships and a naval blockade cutting off Iran’s oil revenues have drawn new threats from Tehran rather than immediately bringing it to the negotiating table.

On Sunday, Trump declared that a large Iranian-flagged cargo ship “tried to break through our naval blockade, but it didn’t go well for them,” adding that a U.S. destroyer blew a “hole in the engine room” before U.S. Marines seized the ship.

The ISNA news agency later quoted a spokesman for Iran’s Central Command as saying that the Iranian military “will soon respond and retaliate against this armed piracy and the US military.”

Tasnim news agency reported that Tehran sent drones in the direction of the US warship after Tuska was seized and “attacked”.

Iran’s Revolutionary Guards warned that any attempt to pass through the strait without permission “will be regarded as cooperating with the enemy, and violating ships will be targeted.”

Uranium stocks are one sticking point

Iran’s Foreign Ministry said Israel has been fighting the militant group Hezbollah in Lebanon and that delaying the implementation of a ceasefire in Lebanon violated the ceasefire agreement.

Another truce reached on Friday between Israel and Lebanon, which includes Hezbollah, which has launched rockets in support of Iran, has drawn Lebanon into the war.

The Israeli military on Monday warned Lebanese civilians not to return to dozens of villages in southern Lebanon, claiming Hezbollah’s activities in the area violated the agreement.

Thousands of displaced residents have begun returning to southern Lebanon since the truce began.

Israeli Defense Minister Israel Katz said on Sunday that the military would respond “fully” to any threat in Lebanon even during a ceasefire.

He also vowed to raze houses allegedly used by Hezbollah, with Lebanese state media reporting that demolition work was underway.

Another major issue in U.S.-Iran negotiations is Tehran’s stockpile of enriched uranium.

Trump said on Friday that Iran had agreed to hand over about 440 kilograms (970 pounds) of enriched uranium.

“We will achieve this by working with Iran using large numbers of excavators,” he said.

But Iran’s foreign ministry said the stockpiles, believed to have been buried by US bombings during the 12-day war last June, “will not be moved anywhere.”

Bakaj said on Monday that there were no discussions with U.S. negotiators about transferring the country’s enriched uranium.

“We never raised that as an option,” he said.

  • AFP Additional input and editing by Jim Pollard

See also:

Hopes for peace in Iran rise, Tokyo’s Nikkei hits record high

Iran war also chokes trade with Middle Eastern importers

China slams port blockade, calls for intensified US-Iran talks

Vance flies away after talks with Iran fail, Saudi Arabia restores pipeline

Iran ceasefire has little impact on damaged Hormuz ships

Energy crisis triggered by Iran war fuels renewable energy boom, IEA says

Asian fuel importers eye Saudi ports amid uncertainty over Strait of Hormuz

Asia ‘worst hit by energy crisis’ due to Iran war

India’s demand for wood, coal poor as gas prices soar due to Iran war

War with Iran could hit some of Asia’s biggest economies hard

India races to secure supplies as new attacks threaten ‘energy war’

Iran war sends gas prices soaring, Asia ramps up coal power generation

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd newspapers in Sydney, Perth, London and Melbourne before traveling to South East Asia in the late 1990s. He served as a senior editor at The Nation for more than 17 years.

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