Portugal Colonial - US pauses Hormuz escorts, Trump says progress on Iran deal

Despite military clashes in the strait in recent days, Trump said "great progress has been made" towards a deal and that the ship-guiding operation "will be paused for a short period of time to see whether or not the agreement can be finalized and signed."

The announcement came after Secretary of State Marco Rubio said the United States had completed its offensive operations against Iran, although he vowed to unleash a "devastating" response to any new attacks by the Iranians on shipping in the narrow waterway.

Despite pausing the ship escorts, Trump said a US blockade of Iranian ports "will remain in full force."

The dispute over shipping through Hormuz as well as Iran's nuclear programme are at the heart of deadlocked talks between Washington and Tehran following two months of war, which began with US-Israeli attacks in late February.

On Monday Iran had fired missiles and drones at US forces, while Washington said it struck six Iranian boats it accused of threatening commercial shipping, in the sharpest escalation since a month-long truce took effect on April 8.

- Araghchi in China -

Iran's Foreign Minister Abbas Araghchi flew to China on Wednesday where he met his counterpart Wang Yi, Chinese state media reported.

China is a key customer for Iranian oil, defying sanctions imposed on Iran by the United States as Washington seeks to choke off its revenue.

Araghchi's trip comes days before Trump is also scheduled to visit China on May 14 and 15 to meet President Xi Jinping -- a trip he delayed due to the war.

China's Xinhua news agency only said Wang "held talks" with Araghchi, without offering details.

The US military escorts over the last day and a half -- dubbed "Project Freedom" by Trump -- drew Iranian attacks, threatening the fragile ceasefire.

Iran has refused to surrender control of the strait, using it as leverage in the conflict.

Iran's Revolutionary Guards on Tuesday warned of a "firm response" if ships deviated from its approved route through the waterway.

Rubio accused Iran of "holding the world's economy hostage" through threats to shipping and the laying of sea mines, and said Washington and Gulf allies had drafted a UN Security Council resolution demanding Tehran halt attacks and disclose the location of mines.

The proposed measure would also require Iran to end efforts to charge tolls in the strait and support a humanitarian corridor, with a vote expected in the coming days, Rubio said.

- 'Maximum pressure' -

Trump urged Iran to "do the smart thing" and make a deal, saying he did not want to kill more Iranians.

Iran's President Masoud Pezeshkian said Tehran remained open to dialogue, but rejected US "maximum pressure" demands as "impossible."

Pentagon chief Pete Hegseth said the United States was "not looking for a fight" but warned that any more Iranian attacks would face "overwhelming and devastating" force.

Israel's air force chief Omer Tischler also said the military was ready to "deploy the entire air force eastward if required."

For a second day in a row, the United Arab Emirates, a key US ally in the Gulf, said it was intercepting missiles and drones from Iran on Tuesday, but the claim was "categorically" denied by Iran.

"The armed forces... did not launch any missile or drone operation," Iran's military command said.

The war has battered the global economy despite the ceasefire reached last month.

Oil prices extended losses on Wednesday, with West Texas Intermediate briefly dipping below $100 a barrel.

F.Moura--PC