US cites optimism over a deal even as Iran threatens to shut down Red Sea shipping


The White House on Wednesday dismissed as untrue reports that the US had sought to extend a ceasefire with Iran, while confirming that discussions over a second round of in-person negotiations were under way after marathon talks in Islamabad last week ended without a breakthrough.

White House press secretary Karoline Leavitt told reporters that discussions were under way about a further round of talks with Tehran but “nothing is official”, adding that the negotiations would “very likely” be held in Pakistan again.

“We feel good about the prospects of a deal,” she said at a press briefing.

“It’s obviously in the best interest of Iran to meet the president’s demands. I think he’s made his red lines in these negotiations very clear to the other side. And so we are continuing to see how these conversations go.”

A second round of talks has been taking shape as the US continued to blockade the Strait of Hormuz and put pressure on Iran. US President Donald Trump said on Tuesday that negotiations “could be happening over the next two days” and on Wednesday said the war was “very close to over”.

But even as Trump appeared confident of reaching a deal with Iran, signs of escalation were evident as Iran’s military on Wednesday threatened to shut down Red Sea trade unless Washington lifted its naval blockade on Tehran’s ports.

According to Iranian state media, the commander of Iran’s joint military command said Iran would “act with strength to defend its national sovereignty and its interests”, warning it would completely block exports and imports across the Persian Gulf region, the Sea of Oman and the Red Sea.

The US blockade was a “prelude to violating the ceasefire”, Ali Abdollahi said.

The warning came as Iran’s foreign minister Abbas Araghchi welcomed a Pakistani delegation led by army chief Asim Munir in Tehran that was reportedly there to relay a new message from the US and discuss a second round of talks.

The first round of negotiations, held in Islamabad on April 11 and lasting over 21 hours, failed to secure a deal, with US Vice-President J.D. Vance citing Iran’s inability to make a “fundamental commitment of will” not to develop nuclear weapons. Iran said Washington “failed to gain the trust of the Iranian delegation”.

Ratcheting up pressure on Iran, the US Treasury on Tuesday said it would not renew the short-term authorisation for Iranian oil sales when it expires on April 19, adding it was “prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities”.

Asked about the sanctions on Wednesday, US Treasury Secretary Scott Bessent said his department has informed countries – and companies – “that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions, which is a very stern measure”.

“China was purchasing more than 90 per cent of [Iran’s] oil, which is about 8 per cent of China’s energy needs,” he said.

“We believe [with] this blockade in the Strait, there will be a pause of Chinese buying. But I will tell you that two Chinese banks received letters from the US Treasury ... we told them if we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions.”

US Treasury Secretary Scott Bessent warns banks and countries dealing in Iranian oil risk secondary sanctions. Photo: EPA

In an interview with Fox Business host Maria Bartiromo that aired on Wednesday, Trump claimed he had exchanged letters with Chinese President Xi Jinping and that the Chinese leader “essentially” said Beijing was not supplying weapons to Iran.

Trump also said in that interview he did not think that the Iran war would “change the dynamic” of his coming visit to China. The US leader was initially scheduled to visit China from late March but the trip was postponed until mid-May because of the Iran war.

At the press briefing, Bessent touted a “great stability” in the US-China relationship, adding that “the keystone to the relationship is the strong respect that the two leaders have between each other”.

“My experience has been when the communication is at the top, then we follow that directive and those wishes,” he said. “I expect great stability in the relationship.”

Trump wrote on social media minutes after the Fox Business interview was aired: “President Xi will give me a big, fat, hug when I get there in a few weeks. We are working together smartly, and very well!” -- SOUTH CHINA MORNING POST

 

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