Although diplomatic contacts are taking place in Islamabad between Iranian and US delegations, mediated by the Pakistani government, the escalating tension in the Middle East and the battle for control of the Strait of Hormuz show no sign of abating.
Following this morning's news that Iran had seized two vessels attempting to cross the strait, the UK Maritime Trade Operations (UKMTO) issued a warning regarding attacks on three container ships in the strait, without specifying the origin of these attacks. Reuters also reports that Iran has condemned the US Navy's interception of Iranian vessels on the high seas as part of its blockade, including a huge oil tanker bound for Singapore that was boarded in the Indian Ocean on Tuesday, shortly before peace talks resumed. The Iranian Foreign Ministry accused the United States of "maritime piracy and state terrorism."
US President Donald Trump issued a statement on Tuesday in which he scaled back his plans to bomb Iran's energy infrastructure, whilst announcing an extension of the ceasefire and the resumption of a new round of diplomatic talks with the Iranian Revolutionary Guard authorities in Pakistan. Just then, US stock futures rose, the dollar fluctuated, and oil prices fell below $100 on Wednesday following the ceasefire announcement, even as the peace talks tentatively scheduled for Islamabad appeared to be on the verge of collapse.
The first round, 11 days ago, ended in failure, reigniting calls to dismantle (or destroy) Iran's nuclear programme. The Iranian government maintains that its programme is peaceful, and that it has the sovereign right to continue it as a signatory to the Nuclear Non-Proliferation Treaty. It demands an end to the war, the lifting of sanctions, reparations for war damage, and recognition of its control over the Strait.
Israel, the other main party involved in the conflict, has not clarified whether it will follow the proposal to extend the ceasefire put forward by its ally the United States, whilst continuing its invasion of Lebanon under the pretext of continuing its war with Hezbollah, despite the ceasefire agreed last week. More than 5,000 civilians have already been killed in this conflict, and an end to Israel's territorial claims and its withdrawal from Lebanon is one of the 'sine qua non' conditions for Iran to agree to a peace deal with the United States.