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Investing.com -- A U.S. military blockade of Iranian ports stretched into a second day on Tuesday, even as hopes surrounded potential forward momentum in peace talks between Washington and Tehran.
British maritime officials noted that access has been restricted for vessels attempting to enter or depart Iranian ports, as well as in coastal areas in the Persian Gulf, Gulf of Oman and sections of Arabian Sea.
The U.S. Central Command later said more than 10,000 sailors, marines, and airmen along with over a dozen warships and dozens of aircraft were helping to maintain the blockade.
"During the first 24 hours, no ships made it past the U.S. blockade and 6 merchant vessels complied with direction from U.S. forces to turn around to re-enter an Iranian port on the Gulf of Oman," CENTCOM said on X.
"The blockade is being enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman. U.S. forces are supporting freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports," CENTCOM added.
President Donald Trump said the blockade took effect on Monday, after weekend talks to establish a permanent ceasefire with Iran did not yield an immediate result. The move has threatened to further constrain already shuttered oil flows through the Strait of Hormuz, a vital waterway through which a fifth of the world’s oil supply traverses.
The effective closure strait has become a central flashpoint since the start of the conflict in late February, driving up oil prices and darkening the wider global economic outlook.
Citing supply chain experts, the Associated Press reported that the U.S. blockade could undermine the flow of oil, fertilizer, food and other goods to consumers already grappling with rising prices.
The AP reported that the U.S. has deployed 16 warships to the Middle East, although none of them are in the Persian Gulf, which forms much of Iran’s coastline.
For its part, Iran has hit out at the U.S. blockade as an "act of piracy" and warned that no Persian Gulf port would be safe if its own were threatened.
Saudi Arabia has been attempting to persuade the U.S. to drop the blockade, fearing that the action could cause Iran to disrupt other crucial global shipping routes, the Wall Street Journal reported.
Diplomacy efforts
Yet diplomatic efforts have appeared to gain some traction. Trump on Tuesday told the New York Post that more talks "could be happening over the next two days" in Pakistan.
The U.S. and Iran have continued to engaged with one another and there has been some forward motion toward a permanent ceasefire deal, Reuters earlier reported.
Trump has also noted that the White House had been contacted by Iranian officials who would like to "make a deal," adding that Iran will not have a nuclear weapon. Washington has reportedly demanded that Iran agree not to enrich uranium, a key part of the process of building a nuclear weapon, for 20 years.
Meanwhile, Pakistan, which has emerged as a key mediator between the U.S. and Iran, has offered to host a second round of discussions prior to the end of the ongoing two-week ceasefire, according to reports. The first talks were held in Islamabad last weekend.
Vice President JD Vance said in a Fox News interview that it was up to Iran to decide what happens next in the war, while also rejecting reports that the Pakistan peace talks were a complete failure. Vance flagged some "good conversations" with Iran over the weekend, which he said helped establish U.S. demands while also providing more insight into Tehran’s wants.
Reopening the Strait of Hormuz and a winding down in Iran’s nuclear activities remained Washington’s top priorities in ceasefire talks, Vance said.
"We’ve stopped bombing the country. What we expect the Iranians to give up is a full reopening of the Strait of Hormuz," Vance said. "There really is, I think, a grand deal to be had here. But it’s up to the Iranians, I think, to take the next step."
Elsewhere, the U.S., Israel, and Lebanon agreed to start direct negotiations at a "mutually agreed time and venue." Representatives from the three countries met in Washington, including U.S. Secretary of State Marco Rubio.
"This meeting marked the first major high-level engagement between the governments of Israel and Lebanon since 1993. The participants held productive discussions on steps toward launching direct negotiations between Israel and Lebanon," the U.S. Department of State said in a statement.
Air attacks by Israel on targets in Iran-aligned Hezbollah targets in Lebanon have been a key sticking point threatening the fragile halt to hostilities between the U.S. and Iran.
Oil prices dipped back below $100 a barrel amid optimism around a deal to end the fighting in the Middle East. Brent crude futures, the global benchmark, were last down by 4.3% to $95.15 a barrel, while U.S. West Texas Intermediate crude futures declined by 7.2% to $91.94 a barrel.
The U.S. dollar, which has been viewed as a bastion for investors during the conflict, weakened slightly as well.
"Markets remain keen to jump into the de-escalation trade, and some tentative signs that the U.S. Hormuz blockade is leading to a new round of talks were enough to add plenty of pressure on USD," analysts at ING said in a note.
Ambar Warrick, Ayushman Ojha, and Anuron Mitra contributed to this article
