China beats Trump's blockade as tanker passes through Strait of Hormuz - as JD Vance accuses Iran of 'economic terrorism'

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Speaking on Tuesday, Vance hit out at the blocking of traffic through the Strait - a key economic trade route, insisting "two could play at that game".

The US insisted the "ball is in Iran's court" with regard to the blockade, as Vance vowed that "no Iranian ships are getting out either" in an apparent tit-for-tat move.

It comes as five sources told Reuters that US and Iranian negotiation teams could return to Islamabad for peace talks as early as this week.

Donald Trump warned that Iranian naval ships approaching the US blockade of the country’s ports will be “eliminated” overnight, using the same “quick and brutal” method to destroy drug dealers’ boats.

Overnight, a tanker sanctioned by the US was seen to pass through the the Strait of Hormuz, despite a US blockade being in place.

Shipping data appears to show the vessel, Rich Starry, a ⁠Chinese-owned medium-range tanker carrying around 250,000 barrels of ⁠methanol, passing through the waterway loaded ​the cargo from the ⁠UAE, Reuters reported.

It comes as the United Nations Secretary-General António Guterres called for the US and Iran to resume negotiations, with the fallout of the blockade having knock-on effects on the price of oil and wider markets around the world.

He added that it is "clear" that "there is no military solution" that will end the war.

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In a post on his Truth Social platform, the US president boasted that “Iran’s Navy is laying at the bottom of the sea, completely obliterated".

He said: “What we have not hit are their small number of, what they call, ‘fast attack ships,’ because we did not consider them much of a threat. Warning: If any of these ships come anywhere close to our BLOCKADE, they will be immediately ELIMINATED, using the same system of kill that we use against the drug dealers on boats at Sea.

“It is quick and brutal. PS 98.2% of Drugs coming into the US by Ocean or Sea have STOPPED! Thank you for your attention to this matter. President DJT”.

It comes as Vance insisted: “We actually made very clear what our red lines were" in an interview with Fox News.

“There are two things in particular where the President of the United States really said we have no flexibility,” Vance added.

Vance pinpointed the two as the US control of Iran’s enriched uranium, and a form of verification that would ensure Iran does not develop a nuclear weapon in the future.

Oil prices spiked back to more than 100 US dollars (£74) a barrel on Monday after US talks with Iran broke down and the US president made his threat to prevent Iranian ships from leaving from 3pm on Monday.

Mr Trump warned the US military would start “blockading any and all ships trying to enter, or leave, the Strait of Hormuz”.

It comes as the White House failed to confirm whether they would entertain the idea of further peace talks with Iran.

"President Trump, Vice President Vance and the negotiating team have made the US red lines very clear," press secretary Karoline Leavitt said.

"The Iranians' desperation for a deal will only increase with President Trump’s highly effective Naval blockade now in effect."

Speaking at the White House, President Trump has claimed Iran has been in touch, and is wanting to make a deal.

He says vice president JD Vance has done a "good job" with envoys Steve Witkoff and Jared Kushner.

"I can tell you that we've been called by the other side, they'd like to make a deal very badly, very badly," he said.

Asked about the sticking point in negotiations, Mr Trump said "it was over nuclear".

"Iran will not have a nuclear weapon. And we agreed to a lot of things, but they didn't agree to that. And I think they will agree to it," he added.

Sir Keir Starmer refused to support the blockade and said he would not allow the UK to be dragged into the war.

The UK and France will lead an international effort to restore freedom of navigation in the crucial oil and gas shipping route, although any mission would not begin until after hostilities end.

A conference later this week will involve countries willing to contribute to a “peaceful multinational mission” to restore freedom of navigation in the strait, Emmanuel Macron said.

The French president said: “This strictly defensive mission, separate from the warring parties to the conflict, is intended to be deployed as soon as circumstances permit.”

Sir Keir said the summit would “advance work on a co-ordinated, independent, multinational plan to safeguard shipping when the conflict ends”.

The Prime Minister said the UK must meet the conflict in the Middle East “calmly but with strength”.

In a statement, he told the Commons: “As the Middle East conflict shows, once more, the world in which we live has utterly changed, it is more volatile and insecure than at any period in my lifetime, and we must rise to meet it calmly but with strength.

“That is exactly what we’re doing at home and abroad. We are strengthening our security, taking control of our future, and building a Britain that is fair for all.”

He also said the UK’s response to fighting in Iran will involve “a closer economic relationship” with European governments.

The Prime Minister told the Commons: “Britain has been buffeted by crises for decades now, from the 2008 financial crash through austerity, Brexit, Covid, the war that still rages in Ukraine, and the disastrous premiership of (former prime minister) Liz Truss.

“The response each time has been to try to return to the status quo – a status quo that manifestly failed working people who saw their living standards flatline and their public services decimated.

“So this time, Britain’s response must and will be different to reflect the changing world that we live in.”