Araqchi said negotiations in Islamabad had been conducted in good faith but were undermined by what he described as “maximalism” and shifting U.S. demands, adding that the talks came close to producing an agreement before breaking down.

The remarks followed an announcement by Donald Trump that U.S. naval forces would begin blockading vessels entering or leaving Iranian ports, a move that risks destabilizing a fragile ceasefire reached after weeks of conflict.

US Central Command said the blockade would take effect at 10 a.m. ET (1400 GMT) and would apply to all maritime traffic linked to Iranian ports across the Arabian Gulf and Gulf of Oman, while maintaining freedom of navigation through the Strait of Hormuz for vessels not bound for Iran.

Trump said the United States would act against ships paying what he described as “illegal tolls” to Iran and warned that any attack on U.S. or commercial vessels would trigger a strong military response.

Iran’s Islamic Revolutionary Guard Corps said any approach by foreign military vessels to the strait would be treated as a violation of the ceasefire and met with a “decisive” response.

Parliamentary Speaker Mohammad Baqer Qalibaf dismissed the U.S. position, saying Tehran would respond in kind. “If you fight, we will fight, and if you come forward with logic, we will deal with logic,” he said, according to state media.

The talks in Islamabad marked the first direct engagement between the United States and Iran in more than a decade and followed a ceasefire announced earlier in the week after six weeks of conflict that has disrupted global energy markets and pushed oil prices above $100 per barrel.

JD Vance, who led the U.S. delegation, said no agreement had been reached, while signaling that diplomacy could continue. Trump also described the talks as “very friendly” and expressed confidence that Iran might return to negotiations.

A U.S. official said key sticking points included demands for Iran to halt uranium enrichment, dismantle enrichment facilities, transfer highly enriched material and end support for regional groups, alongside ensuring open access to the strait.

Iranian officials, including President Masoud Pezeshkian, said Tehran remained open to a “balanced and fair agreement,” blaming Washington for the breakdown and urging a return to international legal frameworks.

Shipping data showed that three fully laden supertankers transited the strait on Saturday, suggesting that maritime flows had not yet been fully disrupted despite the looming blockade.

Iran’s Revolutionary Guards said ships should avoid the main navigation zone and instead follow designated entry and exit paths to reduce the risk of collision with naval mines.

“All ships intending to transit the Strait of Hormuz are hereby notified they should take alternative routes for traffic,” the statement said, emphasizing maritime safety concerns.

The announcement follows Tehran’s agreement to temporarily reopen the strategic strait as part of a two-week truce reached with Washington. The ceasefire was agreed late Tuesday, shortly before a deadline set by U.S. President Donald Trump for Iran to comply with demands related to the reopening of the passage.

The Strait of Hormuz is a critical global energy corridor, through which roughly one-fifth of the world’s oil supply typically passes.

Iran had effectively restricted traffic through the route since early March, contributing to a surge in global energy prices and heightening concerns over supply disruptions.

The designation of alternative routes signals continued operational risks in the waterway despite the ceasefire, underlining the fragile security environment and the potential for further disruption to global shipping and energy markets.

A proposal brokered by Pakistan called for an immediate ceasefire and reopening of the strait, followed by negotiations on a broader settlement within weeks, according to a source familiar with the plan. Iran declined the offer, instead outlining conditions including sanctions relief, regional de-escalation, and reconstruction measures, state media reported.

Trump reiterated threats to target Iranian infrastructure if Tehran failed to meet his demands by the deadline, warning that bridges and power plants could be destroyed. He said the United States could “take out” the country if an agreement was not reached.Fighting continued across the region.

The Israeli military said it carried out airstrikes on Iranian government infrastructure in Tehran and other areas, while intercepting missiles launched from Iran. Saudi Arabia reported intercepting ballistic missiles over its eastern region, with debris falling near energy facilities, and issued public safety alerts alongside the United Arab Emirates and Bahrain.

Iran’s envoy to the United Nations condemned the U.S. threats as a violation of international law, while senior Iranian officials dismissed Trump’s warnings. Authorities also called for civilian demonstrations to protect infrastructure sites.

A synagogue in central Tehran was damaged by a projectile, according to local media, as the conflict widened beyond military targets.Global oil markets remained under pressure, with prices hovering around $110 per barrel amid uncertainty over the reopening of the Strait of Hormuz, a conduit for roughly a fifth of the world’s oil and gas supply.

The continued disruption has raised concerns about inflation and energy security worldwide.The conflict, which began after U.S. and Israeli strikes on Iran in late February, has led to thousands of casualties across the region.

A U.S. fighter jet was also downed last week, underscoring the escalating risks for Washington as the crisis deepens.

The proposal, endorsed by lawmakers on a security panel, includes “financial arrangements and rial toll systems” aimed at asserting Iran’s sovereign role, according to state television.

The plan also provide for cooperation with Oman, which shares control of the waterway’s southern side.Strategic chokepoint under strainThe Strait of Hormuz, a key route for global oil and gas shipments, has been effectively constrained since the onset of the U.S.-Israeli war with Iran.

Tehran has limited passage for vessels it says are linked to adversaries, tightening oversight of maritime traffic.Iran’s Revolutionary Guard Corps has maintained a security presence in the area, with maritime monitors reporting that only a limited number of ships are currently transiting daily, often via routes approved by Iranian authorities.

Iranian officials have argued that transit fees are necessary to ensure the safety of shipping through the strait. The chairman of a parliamentary civil affairs committee, cited by Fars news agency, said vessels should contribute financially to security arrangements in the corridor.

The proposal signals a potential shift toward formalizing Iran’s control over access to the waterway, raising concerns among energy markets already strained by supply disruptions.Limited passage amid diplomatic signalsSome vessels have been allowed to pass in recent days.

Ishaq Dar said Iran had permitted 20 additional ships to transit the strait, a move he described as supporting regional stability.U.S. President Donald Trump said last week that 10 oil tankers were allowed through as a goodwill gesture during ongoing tensions, though details of any linked negotiations remain unclear.

The extent and timing of the proposed toll system’s implementation have not been specified.

Speaking at the Egypt Energy Show 2026 in Cairo, Sisi said only Trump had the capacity to end the conflict in the Gulf region, appealing directly for U.S. leadership to prevent further escalation.

“I tell President Trump: nobody can stop the war in our region in the Gulf but you,” Sisi said. “Please help us stop the war. You are capable of doing so.”

Sisi warned that continued targeting of oil production facilities and refineries could trigger simultaneous supply disruptions and price surges, with consequences yet to be fully realised.

He said concerns among market observers that oil could exceed $200 a barrel were credible.“I fear that targeting energy facilities, whether production or refineries, will have very serious repercussions for the global economy and fuel prices,” he said.

The Strait of Hormuz, a key maritime chokepoint that previously handled about a fifth of global oil flows, has been disrupted amid the conflict, raising concerns over sustained supply constraints.

Beyond energy markets, Sisi highlighted risks to global food security, citing potential disruptions to fertiliser exports that could drive up agricultural costs and strain supply chains.

“Wealthy countries might be able to absorb this, but for middle-income and fragile economies, it could have a very, very severe impact on their stability,” he said.

Egypt, a longstanding recipient of U.S. military aid and Gulf financial support, has condemned Iranian attacks on Gulf Arab states while advocating diplomatic efforts to avoid a broader regional war.

Gulf Cooperation Council Secretary-General Jasem Mohamed Albudaiwi said Iranian actions, including attacks on energy infrastructure and the closure of the Strait of Hormuz, constituted a violation of international law and a direct threat to global energy security.

Addressing the conference virtually, he urged the international community to safeguard maritime corridors, as GCC member states Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain face ongoing drone and missile attacks.

Sisi also referenced Trump’s role in ending the Gaza war, noting that the U.S. president had been instrumental in securing a ceasefire agreement reached in Sharm el-Sheikh in November.

The vessels, BW Tyr and BW Elm, are expected to arrive in Mumbai on March 31 and New Mangalore on April 1, respectively, according to a statement from the petroleum ministry.The transit comes as shipping through the strategic chokepoint has been severely curtailed by the conflict, with Iran allowing passage only to what it has described as “non-hostile vessels” that coordinate with its authorities.

The two tankers are among a small number of Indian-flagged vessels to successfully navigate the strait in recent days. Four LPG carriers have already completed the crossing, while three more remain in the western section of the waterway, according to ship tracking data.

A total of 18 Indian-flagged vessels with 485 Indian seafarers are still in the western Gulf region, the government said, underscoring continued exposure to maritime risks in the area.Energy dependence in focusIndia, the world’s second-largest importer of LPG, consumed 33.15 million tons of the fuel last year, with imports meeting roughly 60% of demand.

About 90% of these imports originate from the Middle East, making the Strait of Hormuz a critical artery for the country’s energy security.

Despite disruptions in maritime traffic, port operations across India remain normal with no congestion reported, the government added.

Iran’s parliament speaker Mohammad Baqer Qalibaf said the United States was signaling openness to negotiations while simultaneously planning military escalation, adding Tehran would not accept what he described as attempts at coercion.

His remarks came as thousands of U.S. Marines began arriving in the region, with the first contingents deployed aboard an amphibious assault ship, according to the U.S. military.

The conflict, triggered by U.S. and Israeli strikes on Iran on Feb. 28, has killed thousands and severely disrupted oil and liquefied natural gas supplies, particularly through the Strait of Hormuz, a critical artery for global energy shipments.

Foreign ministers from Pakistan, Saudi Arabia, Turkey and Egypt met in Islamabad to discuss pathways to de-escalation, with Pakistan positioning itself as a potential intermediary between Washington and Tehran. Pakistan’s Prime Minister Shehbaz Sharif held talks a day earlier with Iranian President Masoud Pezeshkian, while Foreign Minister Ishaq Dar conducted bilateral meetings with his Turkish and Egyptian counterparts ahead of broader consultations.

Parallel military-level engagements are also underway. Pakistan’s army chief Asim Munir remains in contact with U.S. Vice President JD Vance, according to a source familiar with the discussions, indicating ongoing coordination alongside diplomatic outreach.

A Turkish official said Ankara was working with partners on a proposal to reopen the Strait of Hormuz as part of confidence-building measures tied to a potential ceasefire.

The United States has previously outlined a 15-point ceasefire framework, including reopening the waterway and curbing Iran’s nuclear programme, though Tehran has rejected the proposal and advanced its own terms.

Despite diplomatic efforts, hostilities continued. Israel said it struck dozens of targets across Iran, including weapons production and storage facilities in Tehran, while Iranian media reported casualties from strikes on southern port infrastructure.

The conflict has expanded geographically, with Iran-linked Houthi forces launching attacks on Israel, raising concerns about renewed threats to commercial shipping routes. The Strait of Hormuz remains effectively closed, while risks are also rising around the Bab el-Mandeb Strait, a key gateway to the Suez Canal.U.S. officials, cited by the Washington Post, said the Pentagon was preparing for the possibility of prolonged ground operations, including special operations raids and conventional troop deployments, though it remains unclear whether President Donald Trump will authorize such action.

Secretary of State Marco Rubio said Washington could achieve its objectives without deploying ground forces but emphasized the need for military flexibility.Oil prices have surged toward $100 per barrel since the conflict began, reflecting supply disruptions and heightened geopolitical risk.

Iran has allowed limited passage for Pakistani-flagged vessels through the Strait of Hormuz, permitting two ships per day, according to Pakistani officials.

The conflict is also reverberating domestically in the United States, where protests have taken place in multiple cities amid growing public opposition.

With midterm elections approaching, the war has added pressure on the administration as it weighs military escalation against diplomatic resolution.