U.S. and Iran signal new ceasefire talks in Islamabad as truce nears end

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ISLAMABAD -- The United States and Iran have signalled they will hold a new round of ceasefire talks in Pakistan, two regional officials said Tuesday, as leaders on both sides warned they were prepared for more fighting if a fragile two-week truce expires without a deal.

Neither the U.S. nor Iran has publicly confirmed the timing of the talks in Islamabad, with Iranian state television denying any official was already in Pakistan’s capital.

Pakistan-led mediators received confirmation that the top negotiators, U.S. Vice-President JD Vance and Iran’s parliament Speaker Mohammad Bagher Qalibaf, will arrive in Islamabad early Wednesday to lead their teams in the talks, the regional officials told The Associated Press.

The officials spoke on condition of anonymity because they were not authorized to brief reporters.

A ceasefire that began April 8 was set to expire Wednesday.

Trump says he doesn’t favour extending ceasefire

Both sides remain dug in rhetorically. U.S. President Donald Trump has warned that “lots of bombs” will “start going off” if there’s no agreement before the ceasefire deadline, and Iran’s chief negotiator said that Tehran has “new cards on the battlefield” that haven’t yet been revealed.

The ceasefire could be extended if talks resume, though Trump said in an interview Tuesday with CNBC: “Well, I don’t want to do that.”

“We don’t have that much time,” Trump said, adding that Iran “had a choice” and “they have to negotiate.”

White House officials have said that Vance would lead the American delegation, but Iran hasn’t said who it might send. Iranian state television on Tuesday broadcast a message saying that “no delegation from Iran has visited Islamabad … so far.”

Iranian state TV long has been controlled by hard-liners within Iran’s theocracy. The on-screen alert likely reflects the ongoing internal debate within Iran’s theocracy as it weighs how to respond to the U.S. Navy’s seizure of an Iranian container ship over the weekend.

U.S. says its forces board sanctioned oil tanker

On Tuesday, the U.S. said its forces boarded an oil tanker previously sanctioned for smuggling Iranian crude oil in Asia. The Pentagon said in a social media post that U.S. forces boarded the M/T Tifani “without incident.”

The U.S. military did not say where the vessel had been boarded, though ship-tracking data showed the Tifani in the Indian Ocean between Sri Lanka and Indonesia on Tuesday.

The statement added that “international waters are not a refuge for sanctioned vessels.”

The U.S. military on Sunday seized an Iranian cargo vessel, the first interception under blockade of Iranian ports. Iran’s joint military command called the armed boarding an act of piracy and a violation of the ceasefire.

Strait of Hormuz control key to negotiations

The U.S. imposed the blockade to pressure Tehran into ending its stranglehold on the Strait of Hormuz, a key shipping lane through which 20 per cent of the world’s natural gas and crude oil transits in peacetime.

Iran’s grip on the strait has sent oil prices soaring. Brent crude, the international standard, was trading at close to US$95 per barrel on Tuesday, up more than 30 per cent from Feb. 28, the day that Israel and the U.S. attacked Iran to start the war.

Before the war began, the Strait of Hormuz had been fully open to international shipping. Trump has demanded that vessels again be allowed to transit unimpeded through the waterway.

Trump confirmed to CNBC interview that the U.S. is considering a currency swap with the United Arab Emirates, whose oil-rich economy has been rattled by the Iran conflict.

In a possible swap, the UAE would use its currency, the dirham, as collateral to borrow U.S. dollars. The UAE relies on dollar-denominated transactions as part of its global commerce, which has been disrupted by the blockade in the Strait of Hormuz.

European Union transportation ministers were meeting Tuesday in Brussels to discuss how to protect consumers after the head of the International Energy Agency warned that Europe has " maybe six weeks " of jet fuel supplies remaining.

Over the weekend, Iran said that it had received new proposals from Washington, but also suggested that a wide gap remains between the sides. Issues that derailed the last round of negotiations included Iran’s nuclear enrichment program, its regional proxies and the strait.

Qalibaf on Tuesday accused the United States of wanting Iran to surrender.

“We do not accept negotiations under the shadow of threats,” he wrote in an X post.

Pakistan hopeful talks will proceed

Pakistani officials have expressed confidence that Iran will also send a delegation to resume talks that mark the highest-level negotiations between the U.S. and Iran since the 1979 Islamic Revolution. The first round April 11 and 12 ended without an agreement.

Pakistan said Foreign Minister Ishaq Dar met Tuesday with the acting U.S. ambassador in Islamabad to urge a ceasefire extension. Dar also met with the ambassador from China, a key trading partner with Iran.

Security has been tightened across Pakistan’s capital, where authorities have deployed thousands of personnel and increased patrols along routes leading to the airport.

Israel jails soldiers for defacing Jesus statue in Lebanon

Israel’s military said Tuesday it has sentenced two soldiers to 30 days in jail and removed them from combat duty for smashing a statue of Jesus Christ in Lebanon. Images of an Israeli soldier with a sledgehammer smashing the statue’s head emerged over the weekend, bringing widespread condemnation.

Israel said one of the soldiers being punished hammered the statue to the ground. The other filmed the destruction.

Meanwhile, historic diplomatic talks between Israel and Lebanon were set to resume on Thursday in Washington, an Israeli, a Lebanese and a U.S. official said. All three spoke on condition of anonymity to discuss the behind-the-scenes negotiations.

The Israeli and Lebanese ambassadors met last week for the first direct diplomatic talks in decades. Israel says the talks are aimed at disarming Hezbollah and reaching a peace agreement with Lebanon.

A 10-day ceasefire began on Friday in Lebanon, where fighting between Israel and Iranian-backed Hezbollah militants broke out two days after the U.S. and Israel launched joint strikes on Iran to start the war. Fighting in Lebanon has killed more than 2,290 people.

Since the war started, at least 3,375 people have been killed in Iran, according to authorities. Additionally, 23 people have died in Israel and more than a dozen in Gulf Arab states. Fifteen Israeli soldiers in Lebanon and 13 U.S. service members throughout the region have been killed.

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By Munir Ahmed, Jon Gambrell And Samy Magdy

Magdy reported from Cairo and Gambrell from Dubai, United Arab Emirates. David Rising and Huizhong Wu in Bangkok; Sam McNeil in Brussels and Russ Bynum in Savannah, Georgia, contributed to this story.