Iran war: U.S.-Iran war latest update: Donald Trump claims Iran cargo ship seized, warns of airstrikes, Tehran rejects peace talks ahead of ceasefire deadline
While the United States maintains a blockade of Iranian ports, Iran lifted and then reimposed its own blockade of the Strait of Hormuz, which held roughly a fifth of the world’s oil supply before the war began almost two months ago.
Trump said on Sunday that the US military took control of an Iranian-flagged cargo ship that was trying to bypass the blockade. “We have full surveillance of their ship and we see what’s on it!” he wrote on social media, adding that US forces had blown a hole in the ship’s engine room.
Meanwhile, Iran’s official IRNA state news agency reported that Tehran rejected new peace talks, citing the ongoing blockade, Washington’s changing positions and “excessive demands”.
Trump had previously warned Iran that the United States would destroy every bridge and power plant in Iran if it rejected Tehran’s terms, and such threats continued throughout the war.
Iran has said it would hit the power plants and desalination plants of its Arab neighbors in the Gulf if the United States attacked its civilian infrastructure.
US-Iran Talks in Pakistan
Trump said his envoys would arrive in Islamabad on Monday evening, a day before the two-week ceasefire ends. A White House official had said the US delegation would be headed by Vice President JD Vance, who led the first peace talks of the war a week ago, and would also include Trump’s envoy Steve Witkoff and son-in-law Jared Kushner. Trump had told ABC News and MS Now separately that Vance would not be leaving.
Pakistan, which acts as the main mediator, appears to be preparing for the talks. Two giant US C-17 cargo planes landed at an air base on Sunday afternoon carrying security equipment and vehicles in preparation for the arrival of the US delegation, two Pakistani security sources said.
Municipal authorities in the capital Islamabad stopped public transport and heavy goods traffic in the city. Barbed wire was erected near the Serena Hotel, where the talks were held last week. The hotel told all guests to leave.
The apparent diplomatic setback could pave the way for a new rise in oil prices when markets reopen after the weekend.
The war, now in its eighth week, has created the most severe shock to global energy supplies in history, causing oil prices to soar due to the virtual closure of the strait.
Since the war started on February 28, thousands of people have lost their lives in the US-Israeli attacks on Iran and the parallel Israeli invasion of Lebanon. Iran responded to attacks on its Arab neighbors hosting US bases with missiles and unmanned aerial vehicles.
Iran’s chief negotiator, Mohammad Baqir Qalibaf, had previously said the two sides had made progress but were still far apart on nuclear issues and the strait.
European allies, repeatedly criticized by Trump for not helping the war effort, worry that Washington’s negotiating team is pushing for a quick, superficial deal that would require months or years of technically complex follow-up talks.
Strait of Hormuz Jigsaw
Two liquefied petroleum gas tankers attempted to pass through the Strait on Saturday morning but made a U-turn after reaching waters south of Larak Island, according to MarineTraffic ship tracking data.
Iran’s semi-official Tasnim news agency reported that the ships were turned back by Iranian armed forces. According to the data, one of the tankers, the Angolan-flagged LPG tanker G Summer, left the Gulf on the second attempt on Saturday evening, giving the “Chinese owner” signal.
Friday’s announcement that the strait would reopen caused the steepest one-day drop in oil prices in recent years and sent stock markets soaring to all-time highs.
Amrita Sen, founder of the Energy Aspects think tank, predicted that oil prices will rise on Monday, as traders return to their desks realizing they may have been overly optimistic.
“The events of the weekend, when Iran opened fire on commercial ships and closed the strait again, show how unstable the situation is,” Sen said.
With U.S. gasoline prices high, inflation rising and his own approval ratings falling, pressure has increased on Trump for a path out of the war as his fellow Republicans prepare to defend their slim majority in Congress in November midterm elections.
