The Trump administration is sending mixed signals on Iran, expressing confidence in peace negotiations while simultaneously ramping up economic pressure on Tehran through a sweeping shipping blockade and threats of harsh financial sanctions.
U.S. President Donald Trump has declared the war launched with Israel in late February is nearly over, yet a naval blockade of Iranian ports came into full effect this week, severely restricting tanker traffic through the strategically critical Strait of Hormuz.
Optimism Mixed with Economic Threats
White House Press Secretary Karoline Leavitt told reporters Wednesday that officials "feel good about the prospects of a deal," describing mediated talks as "productive and ongoing." However, the administration is simultaneously warning it could impose secondary sanctions on countries purchasing Iranian oil—a move aimed at pressuring Tehran into accepting U.S. terms.
U.S. Treasury Secretary Scott Bessent predicted that Chinese purchases of Iranian crude would "pause" given the blockade, noting the administration has already warned unnamed Chinese banks against processing Iranian transactions under threat of sanctions. China has historically purchased more than 80 per cent of Iran's exported oil.
"The Iranians should know that this is going to be the financial equivalent of what we saw in the kinetic activities," Bessent said, referencing the U.S. and Israeli campaign of airstrikes that have killed Iranian military leaders and damaged defensive infrastructure.
Negotiations Resume This Weekend
Pakistani military officials confirmed that Field Marshal Asim Munir—the lead mediator in previous rounds—arrived in Tehran Wednesday to "narrow gaps" between negotiating teams. U.S. and Iranian officials are reportedly weighing a return to Pakistan for talks as early as this coming weekend.
The last round of in-person negotiations ended Sunday without breakthrough. A two-week ceasefire agreed April 8 remains in effect, though the White House denied reports it had formally requested an extension.
Iranian Foreign Minister Abbas Araqchi posted on social media welcoming Munir and reaffirming Iran's commitment to "promoting peace and stability in the region."
Iran Threatens Escalation
The standoff has already triggered Iranian threats to expand its own shipping blockade beyond current measures, potentially extending restrictions to the Red Sea and Gulf of Oman in retaliation for U.S. naval actions.
The conflict, which began February 28, sparked Iranian attacks on Persian Gulf neighbours and reignited a broader regional struggle involving Israel and Iranian-backed Hezbollah forces in Lebanon.
The U.S. has also signalled it will not renew waivers allowing purchases of Russian and Iranian oil without facing American sanctions, closing another financial pressure point on Tehran.
This story is based on reporting from CBC World and The Associated Press.