US Vice President JD Vance has accused Iran of terrorising the global economy by blocking maritime traffic through the Strait of Hormuz.
He claimed “a lot of progress” was made during talks with Iran over the weekend, but says Tehran “didn’t move far enough” to strike a deal to end the war.
Speaking to Fox News’s Brett Baier, Mr Vance warned that “if the Iranians are going try to engage in economic terrorism, we’re going to abide by a simple principle that no Iranian ships are getting out either”.
His comments came as the US military began a blockade of Iran’s ports although hopes for dialogue to end the war provided some relief to oil markets where benchmark prices fell below $100 on Tuesday.
After a breakdown of weekend talks in Islamabad between the two adversaries, a US official said there was continued engagement and forward motion on trying to get to an agreement.
Pakistan Prime Minister Shehbaz Sharif also said efforts were still under way to resolve the conflict.
US President Donald Trump said Iran had been in touch on Monday and wanted to make a deal but insisted he would not sanction any agreement allowing Tehran to have a nuclear weapon.
Iran’s president, Masoud Pezeshkian, blamed “excessive” US demands for the failure to reach an agreement during talks at the weekend.
“Iran will continue negotiations only within the framework of international law,” he told French President Emmanuel Macron in a phone call, according to Iranian state media.
“Threatening the Strait of Hormuz will have widespread consequences for the world,” he added.
Since the United States and Israel began the war on February 28, Iran effectively shut the Strait of Hormuz to all vessels except its own, saying passage would be permitted only under Iranian control and subject to a fee.
The fallout has been huge and widespread, given nearly a fifth of the world’s oil and gas supplies flowed through the narrow waterway before the start of the conflict.
Trump said Washington would block Iranian vessels and any ships that paid such tolls and that any Iranian “fast-attack” ships that went near the blockade would be eliminated.
Tehran has threatened to hit naval ships going through the strait and to retaliate against its Gulf neighbours’ ports.
Shipping data on LSEG showed Chinese-owned oil-and-chemicals tanker Rich Starry passed through the strait on Tuesday - the first since the US blockade began at 3pm BST on Monday.
The vessel, which departed Sharjah anchorage off the coast of Dubai on Monday heading for China, had earlier turned back minutes after approaching the strait.
The tanker and its owner Shanghai Xuanrun Shipping Co Ltd were sanctioned by the United States for dealing with Iran.
The US’s blockade has further clouded the outlook for global energy security and the supply of a vast array of goods that relies on petroleum, and has little, if any, international backing.
NATO allies including Britain and France said they would not be drawn into the conflict by taking part in the blockade, stressing instead the need to reopen the waterway.
