Vice President Vance has accused Iran of engaging in “economic terrorism” due to its obstruction of the Strait of Hormuz. He noted that the opportunity for a peace agreement remains with Tehran’s willingness to negotiate.

“As demonstrated by the President of the United States, it’s a game both sides can play,” Vance remarked during a Monday interview with Fox News, shortly after the initiation of the U.S. blockade.

“If Iran intends to partake in economic terrorism, we will adhere to the principle that no Iranian vessels will be allowed passage,” he continued.

“We recognize the significance of this move for them, and understand it places additional economic pressure,” Vance emphasized.

The blockade’s implementation followed a breakdown in U.S.-Iran peace discussions in Islamabad, Pakistan, which collapsed after 21 hours of negotiation.

Vance shared with Fox News that Iranian negotiators were unable to finalize an agreement but noted there were “productive conversations” and “considerable progress” was made.

“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,” he said.

“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, we actually made very clear what our red lines were.”

Vance claimed there was the prospect of a “grand deal” but said Iran cannot pursue a nuclear weapon and terrorism in order for it to become a “normal country.”

“It’s up to the Iranians to take the next step,” he said.

Foreign minister Abbas Araghchi said there was “progress on many issues discussed,” but Iranian President Masoud Pezeshkian told his French counterpart Emmanuel Macron that “unreasonable” demands made by Washington prevented a deal from being reached.

The US called on Iran to suspend its nuclear activity for 20 years, the New York Times reported, prompting Tehran to respond with a five year pause.

The US military is blockading Iranian ports in a bid to pressure Tehran into opening the strait – prompting the clerical regime to respond with threats on ports in the Persian Gulf.

President Trump threatened earlier Monday that any Iranian ships that “come anywhere close” to the blockade would be “immediately eliminated.”

Tehran compared the blockade to “piracy” and Pezeshkian warned of “widespread” global consequences, while China accused Washington of being “dangerous and irresponsible” in a sharp rebuke.

“The US increased military operations and took a targeted blockade action, which will only exacerbate tensions and undermine the already fragile ceasefire agreement and further jeopardize safety of passage through the strait,” Guo Jiakun, China’s foreign ministry spokesperson, said Tuesday.

“This is dangerous and irresponsible behavior.”

Chinese President Xi put forward a vague four point peace plan, vowing the world cannot “revert to the law of the jungle.”

He said sovereignty should be respected, the “principle of peaceful co-existence” should be upheld, the international rule of law safeguarded, and a coordinated plan for peace and security.

Despite barbs being traded, US and Iranian negotiators could return to Islamabad later this week for further talks.

“No firm date has been set, with the delegations keeping Friday through Sunday open,” an Iranian source told Reuters.

With Post wires.