LIVE: China warns US over Hormuz blockade, says strait vital for oil, LNG supplies

US and Iran could be headed toward a second round of talks: AP sources

US and Iran could be headed toward a second round of talks, according to AP sources.

The sides are weighing new in-person negotiations in a bid to reach a deal aimed at ending their six-week war before the ceasefire expires next week, two US officials and person familiar with the development said.

The three said discussions were still underway about a new round of talks, while a diplomat from one of the mediating countries went further to say Tehran and Washington have agreed to it.

All four spoke on condition of anonymity to discuss sensitive diplomatic negotiations.

It's unclear if the same level of delegation would be expected to attend, the diplomat and US officials said.

The diplomat and US officials said Islamabad, Pakistan, was once again being discussed as the host location. The US officials also said Geneva was a possibility, and that while the venue and timing had not been decided, the talks could happen Thursday.

The White House didn't immediately respond to a message seeking comment.

Trump told reporters earlier Monday that “we've been called by the other side” and “they want to work a deal.”

Canadian PM Carney secures majority government in special election

Canadian Prime Minister Mark Carney secured a majority government with a special election outcome Monday night, allowing his Liberals to pass legislation without the support of opposition parties.

Voters cast ballots for three vacant seats of the 343 districts represented in Parliament. The public Canadian Broadcasting Corporation projected a Liberal win in a Toronto district. Results for two other districts are expected Monday night.

Carney won Canada's election last year fueled by public anger over US President Donald Trump's annexation threats.

His Liberal party could stay in power until 2029 after Monday's results. Five defections from opposition parties to Carney, including four from the main opposition Conservative party, put Carney's Liberals on the cusp of the majority.

Before Monday's results, the Liberals had 171 members of Parliament in the House of Commons.

One of those defectors referenced Carney's speech at the World Economic Forum in Davos, Switzerland, as helping his decision. In the speech, Carney condemned economic coercion by great powers against smaller countries and received widespread praise for his remarks.

Carney, former head of the Bank of England as well as Canada's central bank, has moved the Liberals to the center-right since replacing Justin Trudeau as prime minister in 2025.

West Asia crisis: EAM Jaishankar speaks to counterparts from Kuwait, Singapore

External Affairs Minister S Jaishankar on Monday spoke to his counterparts from Kuwait and Singapore, focusing on the West Asia crisis as the US blockade of Iranian ports takes effect.

In his conversation with Kuwaiti Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, Jaishankar also discussed the "well-being of the Indian community" in the Gulf nation.

"A good conversation with FM Sheikh Jarrah Jaber Al-Ahmad Al-Sabah of Kuwait. It focused on the regional situation and the well-being of the Indian community," the external affairs minister said on social media.

Jaishankar said he and Singaporean Foreign Minister Vivian Balakrishnan exchanged views on the West Asia conflict and its implications.

"Always nice to speak to FM @VivianBala of Singapore. Our discussions were about the conflict in West Asia and its implications," he said.

Hours after the Iran-US talks in Islamabad ended without any outcome, US President Donald Trump on Sunday said the US military will begin a blockade to stop ships from entering or leaving the Strait of Hormuz and stop all traffic to Iranian ports starting 10 am ET (7:30 pm Indian time) on Monday.

Made lot of progress, ball in Iran’s court: Vance

US Vice President J D Vance said Iran has moved in the direction of the US during the peace talks in Islamabad to end the war and it was for Tehran to make the next move on taking the discussions forward.

The US and Iran failed to reach an agreement in the 21-hour marathon peace talks in Islamabad over the weekend, with Washington insisting that Tehran refused to give up its right over enrichment of nuclear fuel.

"I wouldn't just say that things went wrong. I also think things went right. We made a lot of progress," Vance told Fox News. "They moved in our direction, which is why I think we would say that we had some good signs, but they didn't move far enough," said the US vice president, who led the delegation comprising Special Envoy Steve Witkoff and Jared Kushner, for the talks with the Iranian delegation.

The Iranian delegation included Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi.

Vance stressed that if America’s "red lines" on Iran’s nuclear ambitions are met, "then this can be a very, very good deal for both countries." "Whether we have further conversations, whether we ultimately get to a deal, I really think the ball is in the Iranian court, because we put a lot on the table," Vance said.

The vice president said that the Pakistan peace talks ultimately ended because Iranian negotiators were unable to finalise a deal, adding that the discussions revealed insights into who holds decision-making authority in Tehran. "What we figured out is that they were unable, I think — the team that was there, was unable to cut a deal," he explained.

"They had to go back to Tehran, either from the supreme leader or somebody else, and actually get approval to the terms that we had set." Vance asserted that he agreed 100 per cent with US President Donald Trump on Iran not having nuclear weapons.

US stocks rally, return to where they were before US-Iran war

US stocks rallied Monday and recovered the last of their losses caused so far by the US-Iran war, as Wall Street remains hopeful that the global economy can still avoid a worst-case scenario.

The S&P 500 rose 1% and is back to where it was before the United States and Israel attacked Iran in late February, just 1.3% below its all-time high set early this year. The Dow Jones Industrial Average added 301 points, or 0.6%, and the Nasdaq composite climbed 1.2%.

Even in the oil market, where prices jumped above USD 100 per barrel after ceasefire talks over the weekend failed to end the war, prices pared their leaps as Monday progressed. The moves for financial markets overall were much more modest than the extreme swings that have hit since the war began.

Markets have been pinballing between worries that the war will last a long time and hopes for a resolution because all the parties would benefit from a freer flow of crude oil.

After the weekend's talks failed, President Donald Trump announced a blockade of the Strait of Hormuz, which raises the pressure on Iran by trying to prevent it from making money by selling oil.

A blockade would keep even more oil off the global market, after prices already jumped for everyone worldwide because of Iran's restrictions on traffic in the important strait. The narrow waterway is how much of the oil produced in the Persian Gulf area reaches customers worldwide.

Iran responded by threatening all ports in the Persian Gulf and the Gulf of Oman. Afterward, the price for a barrel of Brent crude, the international standard, rose 4.4% to settle at $99.36 and is well above its roughly USD 70 level from before the war.

China warns US over Hormuz blockade, says strait vital for oil and LNG supplies

A senior Chinese official has warned the United States against imposing a blockade on the Strait of Hormuz and cautioned it not to interfere in China’s bilateral relations with Iran. Defence Minister Admiral Dong Jun's warning coincided with the start of the US naval blockade at 7:30 pm IST on Monday.

"We have trade and energy agreements with Iran; we expect others not to interfere in our affairs," Jun said, adding that the Strait of Hormuz remains open for China.

The waterway is extremely crucial for Beijing as it supplies nearly 40 per cent of its oil and at least 30 per cent of its LNG needs. Hence, China has been pushing for a ceasefire to secure the critical waterway in the Gulf.

According to some experts, Trump's naval blockade could be aimed at the Chinese yuan used by some vessels to transit the critical Gulf chokepoint – seen as a challenge to the decades-old petrodollar system and a means to sidestep US sanctions.

China's Foreign Ministry has reiterated its support for a ceasefire, arguing that the waterway's "safety, stability and unimpeded passage" serves the common interests of the international community.

“The root cause of disruptions to navigation through the strait lies in the conflict involving Iran, and the way to resolve this issue is to achieve a ceasefire and end hostilities as soon as possible,” SCMP quoted spokesperson Guo Jiakun as saying.

He also added that China is ready to play a positive and constructive role in ending the conflict in the Middle East – a region where China is competing with the US for influence.