US and Iranian negotiators could reportedly meet again for talks this week, as a US blockade threatened confrontation in the Strait of Hormuz.

Tehran warned that it would strike ports across the Gulf in retaliation for the US embargo on maritime traffic to and from Iranian ports.

But the clock is ticking on a shaky ceasefire that is due to expire in a week; stocks rose and oil prices fell on prospects for a more durable agreement. US President Donald Trump said Tehran wants a deal “very badly,” but experts believe Tehran is playing for time. Iran’s hand is getting stronger “the longer the Strait of Hormuz is closed,” the Financial Times’ chief foreign affairs columnist argued.