Iran-US war latest: Trump says US seized Tehran-flagged cargo ship after ‘blowing hole’ in vessel

The price of oil increased on Sunday in response to Iran’s announcement that it will again close the Strait of Hormuz in response to a U.S. blockade of the waterway.

The price of bent crude — the international standard for pricing oil — increased by approximately 7 percent, up to $96.88 on Sunday. On Friday the price dropped to its lowest levels since March 10 following news that Iran planned to re-open the strait.

U.S. Energy Secretary Chris Wright told CNN that gas prices might remain well over $3 a gallon until at least “next year.”

On Sunday, the national average for a gallon of gas in the U.S. was $4.05.

Pakistan, ‌which has served as the main mediator between the US and Iran, appeared to be preparing for the talks on Sunday, despite it remaining unclear whether the negotiations would go ahead.

Two giant U.S. ‌C-17 cargo planes landed at an air base on Sunday afternoon, carrying security equipment and vehicles in preparation for the US delegation’s arrival, two Pakistani security sources told Reuters.

Municipal authorities in the capital city of Islamabad halted public transport and heavy-goods traffic through the city. Barbed wire was rolled out near the Serena Hotel, where last week’s talks were held. The hotel told all guests to leave.

The apparent diplomatic setback could set the stage for ⁠a renewed surge in oil prices when markets reopen after the weekend.

UK foreign secretary Yvette Cooper has said that any talks between the US and Iran must result in a toll-free passage for vessels through the Strait of Hormuz.

Ms Cooper said that proposals have been circulating from Tehran to introduce tolls on the crucial waterway once the conflict concludes.

Ms Cooper was travelling to Japan on Sunday on the final leg of a diplomatic mission ahead of the US-Iran ceasefire expiring on Tuesday, which she called a “critical diplomatic moment”.

The Strait of Hormuz, through which a fifth of the world’s oil normally flows, has been closed by Iran as a response to America and Israel’s strikes.

In retaliation, US President Donald Trump began his own blockade of Iran’s oil ports, aimed at stemming Tehran’s fossil fuel income.

“Today, an Iranian-flagged cargo ship named TOUSKA, nearly 900 feet long and weighing almost as much as an aircraft carrier, tried to get past our Naval Blockade, and it did not go well for them,” he wrote.

Trump said that the ship’s crew “refused to listen, so our Navy ship stopped them right in their tracks by blowing a hole in the engineroom.”

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U.S. Central Command released a video of a U.S. Navy ship firing on an Iranian-flagged cargo ship. U.S. Marines boarded and seized the ship on Sunday.

The Independent’s John Bowden writes:

Top administration officials, including President Donald Trump himself, appeared unclear as to whether Vice President JD Vance would lead peace talks with Iranian officials in Pakistan this week, less than 24 hours before the U.S. negotiating team are supposedly due in Islamabad.

Vance’s participation in the upcoming talks has been in question for days after the last round, helmed by the vice president, failed to reach an agreement to end the war. Tuesday is the two-week deadline for the U.S.-Iran ceasefire.

President Donald Trump said on Sunday that the US military had seized an Iranian cargo ship that tried to run its blockade, while Iran said it would not participate in a second round of peace talks despite Mr Trump’s threat of renewed airstrikes.

The developments indicated that peace may not come soon to the region, ⁠and a weeks-long blockade of marine traffic that has driven global oil prices higher likewise might remain in place.

The United States has maintained a blockade of Iranian ports, while Iran has lifted and then reimposed its own blockade of the Strait of Hormuz, which before the war began almost two months ago handled roughly one-fifth of the world’s oil supply.

Mr Trump said on Sunday that the US military took control of an Iranian-flagged cargo ship that had tried to get past the blockade. “We have full custody of their ship, and are seeing what’s on board!” he wrote on ⁠social media, adding that US forces blew a hole in the vessel’s engine room.

Iran’s official IRNA ​state ⁠news agency, meanwhile, reported that Tehran had rejected new peace talks, citing the ongoing blockade and Washington’s shifting positions and “excessive demands.”

Mr Trump had earlier warned Iran that the United States would destroy every bridge and power plant in Iran if Tehran rejects his terms, continuing a pattern of such threats throughout the war.

The UAE has begun talks with the US about obtaining a financial backstop in case the Iran war plunges the state into a deeper crisis, The Wall Street Journal has reported.

The Emiratis reportedly said that they had so far avoided the worst economic effects from the war but might still need a financial lifeline.

A swap line would see the UAE central bank given easy access to dollars to support its currency or shore up its foreign reserves, the newspaper reported.

If the UAE runs short of dollars, it could be forced to use Chinese yuan or other currencies for oil sales, US officials were told.

Iran’s joint military command has condemned the US seizure of an Iranian-flagged cargo ship as “armed robbery”.

In comments reported by news agency Reuters, Iran’s top joint military command said they would retaliate against the seizure by US marines. They said Iranian forces also attacked some US military ships with drones, and said that the cargo ship was heading from China to Iran.

President Trump reportedly adopted a strategy of intentionally acting unstable and insulting towards Iran, in the hopes that it would push the US adversary to negotiate an end to the war, writes Josh Marcus.

The unorthodox tactics were reportedly behind a string of controversial posts the president made this month about the vital Strait of Hormuz, administration officials told The Wall Street Journal.

In one post, on April 5, the president ordered Iran to “open the F***in’ Strait, you crazy b*******, or you’ll be living in Hell,” and ended the post with “Praise be to Allah.”

In another message, this one on April 7, the president threatened that a “whole civilization will die tonight” unless Iran agreed to open the strait.

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