Main developments
Donald Trump said Iranian negotiators had contacted Washington and were keen to strike a deal. “I can tell you we’ve been called by the other side. They’d like to make a deal very badly,” Trump said outside the White House.
Iran’s President Masoud Pezeshkian said the Islamic republic is open to talks with the US but only within the framework of “international law” as he called on Europe to take a “more active” role in encouraging the US to engage in such negotiations.
The US president confirmed that the naval blockade of the Strait of Hormuz officially came into effect at 10am Eastern time.
He said any of Iran’s fast-attack boats that sailed close to warships enforcing it would be “immediately eliminated”.
The blockade came into force after Washington and Tehran failed to reach a deal during weekend talks in Pakistan.
Iran has threatened to hit back against Gulf ports in retaliation for the blockade. The embargo will target maritime traffic entering and exiting Iranian ports but not ships transiting the strait between non-Iranian ports.
The US has issued a notice to mariners stating that its blockade will cover “the entirety of the Iranian coastline”, including ports and oil terminals, and apply to all ships “regardless of flag”.
US stocks have recouped all of their losses during the first weeks of the war in the Middle East, extending a recent rally. Oil prices rose on Monday but settled below $100 a barrel.
JD Vance says the ball is in Iran’s court in relation to future negotiations
JD Vance said the ball was in Iran’s court in relation to future negotiations after the US vice-president led the American delegation during talks with Tehran at the weekend that led to no agreement.
The question of whether there will be more talks “would be best put to the Iranians because the ball really is in their court”, Vance told Fox News on Monday.
“We must have the enriched material out of Iran,” he added. “We must have their conclusive commitment to not develop a nuclear weapon. And I think that if the Iranians are willing to meet us there, then this can be a very, very good deal for both countries”.
S&P 500 erases losses since start of Iran war on hopes of US-Iran deal
US stocks have recouped all of their losses during the first weeks of the war in the Middle East, extending a recent rally driven by hopes of a deal between Washington and Tehran.
The blue-chip S&P 500 on Monday closed 1 per cent higher, leaving the index above the level it closed at before the US and Israel began their attack on Iran on February 28.
The tech-heavy Nasdaq Composite gained 1.2 per cent and is also trading above its prewar level.
The moves suggest that investors were “eager to resume the bull market” despite the collapse of negotiations between the US and Iran over the weekend, said Andrew Lapthorne, quantitative strategist at Société Générale.
Oil prices rose on Monday but settled below $100 a barrel. International benchmark Brent crude rose 4.4 per cent to settle at $99.36 a barrel, while the US marker West Texas Intermediate rose 2.6 per cent, settling at $99.08.