US optimistic of deal with Iran as it increases economic pressure

Written by: Steve Holland, Humeyra Pamuk, Tala Ramadan and Elwely Elwelly

WASHINGTON/DUBAI, April 15 (Reuters) – The Trump administration expressed optimism on Wednesday about reaching a deal to end the war with Iran, while also warning that economic pressure on Tehran would increase if it remains defiant.

President Donald Trump said he believed the war he started with Israel in late February was almost over, even though the shipping blockade he announced had taken effect and traffic in the Strait of Hormuz remained well below normal levels.

The United States has warned it may add secondary sanctions on buyers of Iranian oil in a bid to gain leverage ahead of further negotiations, just weeks after Washington eased the imposition of some energy sanctions on Iran.

US and Iranian officials, whose talks ended Sunday without any progress, were considering returning to Pakistan for further talks next weekend. Mediator Pakistan’s army chief arrived in Tehran on Wednesday to prevent a revival of the conflict.

“We are pleased with the prospect of an agreement,” White House press secretary Karoline Leavitt said at a news conference, describing Pakistan-brokered talks as “productive and ongoing.” He denied reports that the US had formally requested an extension of the two-week ceasefire the two sides agreed on April 8.

Leavitt said further in-person meetings have not yet been confirmed but will likely take place again in Pakistan.

Pakistan army confirmed that Field Marshal Asim Munir arrived in Tehran. A senior Iranian source told Reuters that Munir, who mediated the latest round of talks, would try to “narrow the gaps” between the two sides. Foreign Minister Abbas Araqchi posted on X welcoming Munir and said Iran was committed to “promoting peace and stability in the region.”

Talks last weekend failed without an agreement to end the war that Trump launched with Israel on February 28, triggering Iran’s attacks on its Gulf neighbors and reigniting the conflict between Israel and Iran-backed Hezbollah in Lebanon.

ECONOMIC PRESSURE ON IRAN

Speaking alongside Leavitt, Treasury Secretary Scott Bessent predicted that China’s purchases of Iranian oil would be “paused” given the U.S. blockade on ships calling at Iranian ports. He said the US could impose secondary sanctions on countries that buy crude oil from Iran.

The US Treasury warned two Chinese banks not to handle Iranian money or face sanctions, but did not name the banks. China had previously purchased more than 80% of the oil shipped by Iran.

“The Iranians should know that this will be the financial equivalent of what we’ve seen in kinetic activities,” Bessent said, referring to U.S. and Israeli airstrikes that killed scores of Iranian leaders and damaged their defense capabilities and navy.

He also said the United States would not renew exemptions that allow the purchase of some Russian and Iranian oil without facing U.S. sanctions. The moves signal the end of the Trump administration’s efforts to use waivers to free up more oil supplies and reduce rising global energy prices.

The war has left Iran effectively closing the Strait of Hormuz, a vital artery for global crude oil and gas shipments, to ships other than its own, sending exports from the Gulf down sharply and leaving energy importers scrambling for alternative sources.

A source briefed in Tehran said Iran may consider allowing ships to pass freely through the strait without risk of attack from Oman, as part of its offers in talks with the United States, provided an agreement is reached to prevent a recurrence of hostilities.

Finance ministers of nearly a dozen countries, led by Britain, called on the United States, Israel and Iran to implement the entire ceasefire, saying that even if the conflict is resolved soon, it will put pressure on the global economy and markets.

TANKERS CAUGHT

The US military said no ships were able to pass US forces during the first 48 hours of the US blockade on ships entering and exiting Iranian ports. An additional nine ships complied with instructions from U.S. forces to turn around and head toward the Iranian port or coastal area.

However, Iran’s Fars News agency said that an Iranian super tanker, which was subject to US sanctions, crossed the strait and headed towards Iran’s Imam Khomeini port, despite the blockade. Fars did not identify the tanker or provide further details of its journey.

Iran’s joint military command has warned that if the US blockade continues, it will stop the flow of trade in the Gulf, the Arabian Sea and the Red Sea, which connects to the Suez Canal.

Trump also threatened to escalate tensions if the war resumes.

“We can take out every one of their bridges in an hour. ‌We can take out every one of their power plants, power plants in an hour. ‌We don’t want to do that… so we’ll see what happens,” he told Fox Business Network.

CONVERSATIONS COMPLEXED DUE TO THE NUCLEAR PROBLEM, LEBANON

Iran’s nuclear ambitions were a major sticking point in talks last weekend. The United States has proposed a 20-year suspension of all Iranian nuclear activities — an apparent concession to long-standing demands for a permanent ban — while Tehran has suggested a three-to-five-year halt, according to sources familiar with the proposals.

Washington has also pressed for the removal of enriched nuclear material from Iran, while Tehran has demanded the lifting of international sanctions against it.

A source involved in the talks said back-channel talks were making progress in narrowing differences and moving the two sides closer to a deal that could be presented in a new round of talks.

Further complicating peace efforts, Israel continued to attack Lebanon, targeting the Iran-backed Hezbollah. While Israel and the USA say that the campaign is not within the scope of the ceasefire, Iran insists on this issue.

Israeli Prime Minister Benjamin Netanyahu said in a video statement released on Wednesday evening that Israel is “ready for any scenario” when it comes to war with Iran.

(Reporting by Reuters bureaus, Writing by Ros Russell, Keith Weir and Simon Lewis; Editing by Peter Graff, Hugh Lawson and Nia Williams)