US, Iran warn of readiness for war as talks in limbo

The United States and Iran each warned they were ready for war as the clock ticked down on their ceasefire, with uncertainty over talks that US President Donald Trump had announced would resume in Pakistan.

The White House said Vice President JD Vance was ready to fly back to the Pakistani capital Islamabad, which was preparing for a second round of talks on ending the war that has engulfed the Middle East and shaken global markets.

However, Iran's cleric-run government declined to confirm that it would participate and accused the United States of violating the truce through its blockade of Iranian ports and seizure of an Iranian ship.

"By imposing a blockade and violating the ceasefire, Trump wants to turn this negotiating table into a surrender table or justify renewed hostilities, as he sees fit," said Iran's powerful parliament speaker Mohammad Bagher Ghalibaf, who headed the delegations to talks two weeks ago in Pakistan.

"We do not accept negotiations under the shadow of threats, and in the last two weeks we have been preparing to show new cards on the battlefield," he wrote on X.

Iran's Revolutionary Guards warned of targeting any vessel attempting to pass through the Strait of Hormuz without permission.

Mr Trump has similarly accused Iran of violating the truce by harassing vessels in the key strait, the transit passage for about a fifth of the world's oil that Iran had all but shut in retaliation for the war launched 28 February by the United States and Israel.

The channel in peacetime sees around 120 daily transits, according to Lloyd's List, a shipping industry intelligence site.

The site reported that more than 20 Iranian so-called "shadow vessels" had transited past the US blockade.

In one of a series of posts on his Truth Social platform, Mr Trump insisted that the blockade was "absolutely destroying" Iran and said it will not end "until there is a 'DEAL'," in which the United States is pressing for Iranian concessions on its contested nuclear programme.

'Agreed' to attend talks

Mr Trump told PBS News that Iran was "supposed to be there" at the talks in Pakistan.

"We agreed to be there," he said, warning that if the ceasefire expired "then lots of bombs start going off".

He separately told Bloomberg News it was "highly unlikely" he would extend the two-week truce.

Based on its start time, the truce theoretically expires overnight tonight, although in his comments to Bloomberg, Mr Trump said the end was a day later, on Wednesday evening Washington time.

Oil prices fell while most stocks rose on lingering hopes for a deal to end the US-Iran war and reopen the Strait of Hormuz, even as Tehran said it had not decided whether to attend peace talks.

New Israel-Lebanon talks

A separate ceasefire agreed between Israel and Lebanon was announced on Friday and included Hezbollah, whose rocket fire in support of Iran drew Lebanon into the war.

Israel and Lebanon, which have no diplomatic relations, will hold a second round of talks on Thursday in Washington, a State Department official told journalists.

Sporadic violence continued and Israel's military warned civilians against returning to dozens of villages in southern Lebanon, claiming Hezbollah's activities were violating the truce.

The UN Security Council condemned the killing of a French peacekeeper in Lebanon, whose death France blamed on Hezbollah.

The Frenchman was killed and three others wounded when their unit was ambushed on Saturday as it headed to a UN Interim Force in Lebanon (UNIFIL) outpost cut off from the fighting between Hezbollah and Israel.

Hezbollah politician Hassan Fadlallah told AFP that his group would work to break the "Yellow Line" that Israel has established in the south, even as he said it wanted "the ceasefire to continue".

Israeli attacks on Lebanon have killed at least 2,387 people since the start of the war, a Lebanese government body said in its latest toll.

Another major issue in the US-Iran negotiations has been Tehran's stockpile of enriched uranium, which Mr Trump said on Friday it had agreed to hand over.

However, Iran's foreign ministry has said the stockpile, thought to be buried from US bombing in last June's 12-day war with Israel, was "not going to be transferred anywhere".

Spokesman Esmaeil Baqaei said handing over uranium was "never raised as an option" in talks with US negotiators.

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