SEOUL: South Korea and Poland hailed their deepening defence partnership on Monday (Apr 13), as the European country modernises its military following the Russian invasion of Ukraine.

Warsaw has emerged as a key buyer of arms from Seoul, and the countries signed a weapons deal worth over US$40 billion in 2022.

Polish Prime Minister Donald Tusk is in Seoul for the first such visit in 27 years, and held a summit with South Korean President Lee Jae Myung on Monday.

"Even amid a prolonged period of geopolitical instability, defence cooperation between our two countries has continued to deepen," Lee said in his opening remarks.

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Seoul and Warsaw would also elevate ties to a "comprehensive strategic partnership", he said.

The 2022 framework agreement covered Polish purchases of South Korean tanks, self-propelled howitzers and rocket launchers.

Lee said some of those weapons were now "operating proudly across Poland's vast plains, helping to safeguard the country's territory and protect its people".

Poland, a member of the European Union and the NATO defence bloc, has stood firmly behind neighbouring Ukraine since Russia launched its full-scale invasion in February 2022.

South Korea has also backed Kyiv, particularly since North Korea sent soldiers to fight for Russia.

Tusk described South Korea as "Poland's second-most important ally after the United States, particularly in the field of the defence industry", according to a Korean translation of his opening remarks.

The two leaders also agreed to expand cooperation in non-defence fields, including energy supply chains and infrastructure.

Tusk wraps up his visit on Monday and will then head to Tokyo.

SYDNEY: Australia on Monday (Apr 13) said a woman would lead its army for the first time in history, as part of a reshuffle of the country's defence force leadership.

Lieutenant General Susan Coyle, the current chief of joint capabilities, will become chief of army in July, the government said in a statement. She will replace Lieutenant General Simon Stuart.

Coyle's appointment comes as Australia's military seeks to boost the number of female officers in its ranks. It faces a wave of allegations of systematic sexual harassment and discrimination.

"From July, we will have the first ever female chief of army in the Australian Army's 125-year history," Prime Minister Anthony Albanese said in a statement.

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Defence Minister Richard Marles called Coyle's appointment a "deeply historic moment".

"As Susan said to me, you cannot be what you cannot see," he said.

"Susan's achievement will be deeply significant to women who are serving in the Australian Defence Force today and women who are thinking about serving in the Australian Defence Force in the future."

Coyle, 55, enlisted in the military in 1987 and has held a number of senior command roles. She will be the first woman to lead any service branch of the military, Marles said.

Women currently make up around 21 per cent of the Australian Defence Force (ADF) and 18.5 per cent of senior leadership roles. The ADF has set a target of 25 per cent of overall participation for women by 2030.

Last October, a class action lawsuit was filed against the ADF alleging it failed to protect thousands of female officers from systematic sexual assault, harassment and discrimination.

The government on Monday also appointed Vice Admiral Mark Hammond, the current chief of the navy, as the head of the ADF, succeeding Admiral David Johnston.

The current deputy chief of navy, Rear Admiral Matthew Buckley, will replace Hammond as head of the branch.

HONG KONG: Spanish Prime Minister Pedro Sanchez on Monday (Apr 13) said China should take on a more substantial role with issues including climate change, security, defence and the fight against inequality, adding that Europe will also have to redouble its efforts as the US withdraws from leadership roles on many fronts.

Sanchez, who is making his fourth visit to China in four years, spoke at Beijing's Tsinghua University.

His three-day visit comes as many Western governments seek to maintain engagement with Beijing despite lingering security and trade tensions. It follows visits to China earlier this year by the prime ministers of Britain, Ireland, Canada and Finland.

Spain has been one of Europe's loudest proponents of expanding trade and treating China as a strategic ally rather than an economic and geopolitical rival.

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Sanchez said China could do more in terms of fighting climate change, promoting global health, controlling the development of responsible artificial intelligence as well as nuclear weapons.

"For example, by demanding as it is doing, that international law be respected and that the conflicts in Lebanon, Iran, Gaza and the West Bank and Ukraine cease," he said.

"Europe will also have to redouble its efforts, especially now that the United States has decided to withdraw from many of these fronts."

Sanchez's visit comes as he seeks to position Spain as a bridge between Beijing and the 27-member European Union, whose relations with the US are showing signs of strain.

He is expected to meet Chinese President Xi Jinping on Tuesday, where they are expected to focus on geopolitics.

US President Donald Trump's tariffs and unpredictable foreign policy have caused concern among Western leaders, many of whom have flocked to Beijing in recent months seeking closer ties.

CHINA TRADE IMBALANCE WITH EU "UNSUSTAINABLE"

On Monday, Sanchez also called China's trade imbalance with the European Union "unsustainable" and called on Beijing to open its market to European imports.

"We need China ... to open up so that Europe does not have to close itself off," said Sanchez.

He called on Beijing to "help us correct the current trade deficit ... A deficit that is unbalanced, which grew by a further 18 per cent last year alone. And which is unsustainable for our societies in the medium and long term".

China accounted for 74 per cent of Spain's total trade deficit, Sanchez said, adding that cooperation was important to build a "balanced, globalised economy that generates shared prosperity".

Madrid hopes Sanchez's visit will narrow Spain's trade deficit, which more than doubled in four years to nearly US$50 billion in 2025. It is looking to boost agricultural and manufacturing exports to offset high volumes of China's imports.

China's official news agency Xinhua on Monday said Sanchez's visit was set to further consolidate bilateral ties and pointed to a broader pathway for steady engagement between China and Europe at a time of growing global uncertainty.

The Spanish leader is also keen to boost trade with China after Trump, who is due to visit Beijing in May, threatened last month to cut trade with Spain.

Trump's threats came after Spain denied the use of its military bases for US strikes against Iran, a key economic partner of Beijing.

Spanish government sources said a primary goal of the trip is to secure greater market access for agricultural and industrial goods, and to explore joint ventures in the technology sector.

Sanchez is also expected to use the visit to attract new investors for the eurozone's fourth-largest economy and to gain access to China's critical raw materials.

On Monday, he is scheduled to visit the headquarters of Chinese tech giant Xiaomi and tour a technology exhibit at the Chinese Academy of Sciences.

During his visit to China in April 2025, Beijing agreed to expand access for a range of Spanish products, including pork and cherries.

The Spanish government has said that Spain's exports to China rose 6.8 per cent in 2025, crediting the growth to strong ties with Beijing.

Chinese foreign ministry spokeswoman Mao Ning on Wednesday called Spain "an important partner of China within the EU", adding that Sanchez's visit offers a chance to "promote bilateral relations to an even higher level".

King Felipe VI and Queen Letizia paid a state visit to China last November, the first by a Spanish monarch in 18 years, highlighting the closeness of ties.

BUDAPEST: Peter Magyar's landslide victory in Sunday's (Apr 12) Hungarian election has handed his centre-right Tisza party a sweeping mandate that will give it a free hand to enact reforms, bolster the rule of law and potentially unlock billions in European Union funding.

Economists and political analysts say the incoming government's expected two-thirds supermajority was the most EU- and market-friendly scenario - and before Sunday, one of the most improbable - and would likely trigger a strong rally in Hungarian assets on Monday.

A number of uncertainties remain, and wary diplomats and analysts say the new government must deliver on its promises before reaping the full benefits, but the markets, for now, look willing to give Budapest's new masters the benefit of the doubt.

"The result is a game-changer and will allow Magyar to govern with a free hand," said Mujtaba Rahman, a managing director at Eurasia Group. "Most importantly, he will be able to unwind Orban's autocracy and deliver on all of the reforms the EU is demanding.

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"That means at least €6.4 billion (US$7.46 billion) from the resilience and recovery facility should flow quickly, shoring up the real economy and further consolidating Tisza's win."

MAGYAR PLEDGES TO REBUILD ALLIANCES

The election had long been anticipated as the ‌most market-sensitive in Europe this year, given the eurosceptic Orban's frequent clashes with Brussels during his 16-year rule, over issues ranging from immigration to his closeness to Russia.

Orban had expressed confidence throughout the election campaign despite lagging in opinion polls, saying his goal was to protect Hungary's national identity and traditional Christian values within the EU, while denying any wrongdoing.

But the markets had been signalling for weeks that investors expected change. The share prices of companies linked to Orban fell sharply, while market volatility gauges indicated that big currency moves were likely after the election.

Magyar, addressing jubilant supporters chanting "Europe, Europe" after Orban conceded defeat, pledged to make Hungary a strong EU and North Atlantic Treaty Organization ally and rebuild ties marred by years of conflict.

"With the two-thirds majority allowing us to amend the constitution, we will restore the system of checks and balances," Magyar said.

"We will join the European Public Prosecutor's Office and guarantee the democratic functioning of our country. We will never again allow anyone to hold free Hungary captive or to abandon it."

One fundamental plank of Magyar's plan to kick-start Hungary's economy, which has been mired in near-stagnation for the past three years, was to unlock EU funds frozen as democratic standards eroded under Orban.

"A constitutional majority is a different story entirely," said Ian Bremmer at GZERO Media.

"That would give Magyar the power to rewrite the constitution, clear out Fidesz loyalists from captured institutions, fully access EU funding, and even adopt the euro – a core campaign pledge."

On Sunday, Magyar called on Hungary's chief prosecutor, the head of the top court, the head of media authority and other officials to resign, saying the country's public institutions had been captured by Orban loyalists over the past 16 years.

DIPLOMATS AND RATING AGENCIES CAUTIOUS ON EU FUNDS

Magyar has pledged a sweeping anti-corruption drive as his party seeks to meet EU conditions, including stronger judicial independence and public procurement, to unlock the funds.

However, credit rating agencies such as S&P Global and Fitch Ratings, as well as some EU diplomats, are sceptical about whether any money still available under Hungary's pandemic recovery funding would be released.

Diplomats and analysts say comparisons with Poland's 2023 election, when Prime Minister Donald Tusk's pro-EU Cabinet secured a quick release of EU funding on promises to roll back his nationalist predecessor's policies, may be misguided.

"There is no willingness to give out the money only on a promise like the EU did to Tusk in Poland, who was not able to deliver on most promises," said an EU diplomat.

"Tisza would need to demonstrate that it can deliver. But if something is legally impossible, and that can be demonstrated, then the EU could figure out a way."

Analysts at Capital Economics say the release of EU funding could help cut Hungary's budget deficit towards 3.5 per cent to 4 per cent of national output by the end of the decade and stabilise public debt - the EU's highest outside the eurozone.

"Overall, the election result marks a major turning point for Hungary's economy," Liam Peach said in a note.

"The durability of any positive market reaction will now depend on how quickly Tisza moves to rebuild relations with the EU, secure EU fund disbursements and signal a credible medium-term fiscal anchor.

The first weekend of Coachella 2026 is about to end and so far, Asian and Asian-adjacent music acts have brought the heat to the California desert.

The first night of this year's Coachella saw girl group Bini become the first Filipino group to perform at the event. The group, which comprises Aiah, Colet, Maloi, Gwen, Stacey, Mikha, Jhoanna and Sheena, performed hits like Zero Pressure, Salamin, Salamin and Blink Twice.

Following their set, the group told music outlet Billboard that they were "over the moon" and proud to represent the Philippines on a global stage.

Also performing on Day 1 of Coachella 2026 was global girl group Katseye, which has several members of Asian descent: Lara, Megan, Sophia and Yoonchae.

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With member Manon currently on hiatus, Katseye performed as a quintet during Coachella, thrilling audiences with hits like Gnarly and Gabriela.

The group’s set also delivered a standout moment, as they covered the megahit Golden from the Academy Award-winning film KPop Demon Hunters and brought out the singing voices behind Huntrix – Ejae, Rei Ami and Audrey Nuna – on stage to perform it with them.

Following Katseye's performance, Megan's Singaporean mother, Sylvia Lee, took to Instagram to thank fans for showing Katseye "continued love and support".

"I can’t believe that I’m actually standing in front of [the] Sahara stage watching my baby girl and her sisters crush it at their debut at Coachella!" wrote Lee. "Congratulations to Katseye and [Hybe and Geffen Records] and all the staff, the production crew and dancers for making this dream come true!"

Shinee member Taemin made history as the first-ever Korean male artiste to stage a solo performance at the renowned music festival. The 32-year-old made the most out of his set at Mojave stage on Sunday morning (Singapore time) with a mix of old favourites like Move and Heaven, as well as the debut of six new songs.

Hours earlier, Japanese singer-songwriter Fujii Kaze also made his debut at the same stage where he thrilled fans with earworms like Matsuri and Shinunoga E-wa.

The first weekend of Coachella will conclude with performances by Icelandic jazz singer Laufey, whose mother hails from China, and K-pop legends BigBang, which comprises G-Dragon, Taeyang and Daesung.

WASHINGTON: United States President Donald Trump attacked Pope Leo XIV late on Sunday (Apr 12) following the pontiff's criticism of his foreign and immigration policies.

"Pope Leo is WEAK on Crime and terrible for Foreign Policy," Trump wrote in a post on Truth Social.

Pope Leo, who last year became the first US-born pope, has emerged as an outspoken critic of the US-Israeli war on Iran that began on Feb 28. He previously questioned the Trump administration's approach to immigration.

"Leo should get his act together as Pope," Trump wrote in his post on Sunday, later telling reporters he was "not a big fan" of the pontiff.

Trump's broadside against Leo also accused him of being "weak on nuclear weapons", several days after the pope said the US president's threat to destroy Iranian civilisation was "truly unacceptable".

In a speech on Palm Sunday last month in St Peter's Square in the Vatican, the pope said God rejects the prayers of leaders who start wars and have their "hands full of blood", calling the conflict in Iran "atrocious".

Pope Leo has also called on Trump to find an "off-ramp" to end the conflict and "decrease the amount of violence".

In his post, Trump suggested that Pope Leo was only elected to lead the Catholic Church last year "because he was an American, and they thought that would be the best way to deal with President Donald J Trump".

The Vatican did not immediately respond to a request for comment.

Pope Leo has called for "deep reflection" about the way migrants are being treated in the US.

Last year, the pope also questioned whether Trump's hard-line immigration policies were in line with the Catholic Church's pro-life teachings.

"Someone who says I am against abortion but I am in agreement with the inhuman treatment of immigrants in the United States, I don't know if that's pro-life," the pontiff said in September.

The Vatican leader's belief in a more compassionate approach to immigration - a sentiment expressed by several of Pope Leo's predecessors - stands in contrast to the stance of Trump, who has argued that the US must curtail immigration from developing countries to reduce crime.

"He's a very liberal person and he's a man who doesn't believe in stopping crime," Trump told reporters on Sunday night.

Trump also had a rocky relationship with Pope Leo's predecessor, Pope Francis, who criticised Trump's immigration policy proposals when he first ran for president and suggested Trump was "not a Christian". Trump had called Pope Francis "disgraceful" in early 2016.

WASHINGTON: A US naval blockade of Iran is a major, open-ended military endeavour that could trigger fresh retaliation from Tehran and put tremendous strain on an already fragile ceasefire, experts say.

President Donald Trump, in a social media post after no deal emerged from peace talks over the weekend in Islamabad, said the US Navy "will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz".

The US military's Central Command later said the blockade will only apply to ships going to or from Iran, including all Iranian ports on the Arabian Gulf and Gulf of Oman. It will take effect on Monday (Apr 13) at 10am in Washington (10pm, Singapore time), CENTCOM said.

Trump also said US forces would interdict vessels that have paid tolls to Iran, even if those ships are now in international waters. "No one who pays an illegal toll will have safe passage on the high seas," Trump wrote on Truth Social.

The ultimate goal, Trump said, would be to pressure Iran to end its effective closure of the strait, a choke point for about 20 per cent of the world's oil, to all but the countries that secure safe passage from Tehran. 

If Trump's strategy succeeds, he would eliminate Iran's greatest point of leverage in negotiations with the United States and clear the strait again for global trade, potentially lowering oil prices. But a blockade, experts say, is an act of war that requires an open-ended commitment of a significant number of warships.

Simon Frankel Pratt, senior lecturer in political science at the University of Melbourne, told CNA’s Asia First that the move is “certainly feasible”, given the US has the naval capability to carry it out.

However, he said it remains unclear whether Washington will target only Iranian ports or extend the blockade to all vessels that have complied with Tehran’s toll system. 

The blockade could “go some way to restoring US leverage”, he said, particularly if the aim is to stop Iran from establishing a toll regime. 

But he warned it would likely worsen the energy and economic crisis in the short term, while also costing the US diplomatic capital among partners affected by the disruption.

He added that the move could raise legal and political questions, noting that a blockade would be difficult to justify under international law and could further strain ties with countries that rely on the waterway.

Even so, he said it may be “the least bad option available” after negotiations collapsed.

"Trump wants a quick fix. The reality is, this mission is difficult to execute alone and likely unsustainable over the medium to long-term," said Dana Stroul, a former senior Pentagon official during the Biden administration now at The Washington Institute for Near East Policy.

IRANIAN RETALIATION

The US military has not offered basic details yet about the blockade, including how many US warships will enforce it, whether warplanes will be used and whether any Gulf allies will assist in the effort. Central Command declined to respond to requests for comment.

With enough warships, the US Navy could set up a blockade that intimidates many commercial tankers from trying to power through with Iranian oil, experts say.

But would the United States be prepared to board and seize - or even damage or sink - ships that try to break the blockade? What if they carry oil for China, a major power, or US partners such as India or South Korea?

And what would Iran do? Retired Admiral Gary Roughead, a former chief of US naval operations, cautioned that Iran could fire on ships in the Gulf or attack infrastructure of the Gulf states that host US forces.

"I honestly believe that if we begin to do it, that Iran will have some kind of a reaction," Roughead said.

Iran's threats to shipping have caused global oil prices to skyrocket about 50 per cent since the US and Israel launched the war on Feb 28. 

Trump said on Sunday that the price of oil and gasoline may remain high in the United States through November's US midterm elections, which could see Trump's Republicans lose control of the US Congress if there is a public backlash. The war has already been unpopular.

GAS PRICE PROBLEM

Frustrated by Iran's refusal to end the war on his terms, Trump on Sunday also floated the possibility of a resumption of US strikes inside Iran, citing missile factories as one possibility. 

US Senator Mark Warner of Virginia, the ranking Democrat on the Senate Intelligence Committee, questioned the strategy, noting Iran could send speedboats to mine the strait or put bombs against tankers.

"How is that going to ever bring down gas prices?" Warner asked on CBS's "Face the Nation".

Thousands of US military strikes have severely weakened Iran's military. But analysts say Tehran has emerged from the conflict as a vexing problem for Washington, with a more hardline leadership and a buried stockpile of highly enriched uranium.

Stephen Zunes, director of Middle Eastern studies and professor of politics at the University of San Francisco, told CNA938 that the blockade risks backfiring and could deepen the crisis rather than resolve it.

He warned that the move could expose US forces to further attacks and make an already fragile situation “far worse”.

He said such pressure is unlikely to force Iran to give in, arguing instead that it could harden Tehran’s position and reduce the chances of a negotiated outcome.

Zunes also pointed to the failed talks, saying earlier US demands for Iran to fully give up its nuclear programme were unrealistic and contributed to the breakdown. 

He said a more gradual approach – such as securing a temporary reopening of the strait first – might have had a better chance of success.

He added that the broader impact could be significant, with countries in Asia that depend on Gulf energy flows likely to feel the strain if tensions escalate further.

Trump threatened on Sunday that "any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

Iran's Revolutionary Guards responded with a statement warning that military vessels approaching the strait will be considered a ceasefire breach and dealt with harshly and decisively, underlining the risk of a dangerous escalation.

Stroul said the crisis will require a long-term, international effort to resolve.

"Over the long run, this will need to be resolved through diplomacy and international political will," she said.

NEW YORK: New York Mayor Zohran Mamdani marked his 100th day in office on Sunday (Apr 12) with a rally to tout early successes and vow to follow through on his unabashedly "socialist" agenda.

"I know there are many who use 'socialist' as a dirty word, something to be ashamed of," the 34-year-old told a packed room in Queens.

"They can try all they want, but we will not be ashamed of using government to fight for the many, not simply the few," he said.

Mamdani pointed to a programme to fill city street potholes - over 100,000 since Jan 1 - as evidence he is committed to making the lives of everyday New Yorkers better.

"If government can't do the small things, how could you ever trust it to do the big ones? How can we promise to transform our city if we can't pave your street?"

The young mayor was joined at the rally by his close ally, 84-year-old leftist icon Bernie Sanders.

Mamdani touted progress on signature campaign promises, such as launching city-run grocery stores - the first of which will open next year - and providing free childcare for young children.

He has also reshuffled city committees that could pave the way for freezing rent increases in the coming months.

Free bus rides, however, are still only under discussion with New York State authorities, he said.

The new mayor's approval rating, according to two polls released this week, stood at 48 per cent with New York residents and 43 per cent among voters.

According to the Emerson College Polling/PIX11 survey of voters, 54 per cent praise his initiatives on childcare and 49 per cent on housing costs.

However, the survey also shows that 68 per cent of Hispanic voters and 58 per cent of Black voters believe the city is "on the wrong track."

Although highly critical of Donald Trump during his campaign, Mamdani has apparently struck up a cordial relationship with the Republican US president, visiting the White House twice in recent months.

According to a Marist Poll, 59 per cent of New Yorkers believe he has struck the "right balance" with Trump.

With a minimalist set and a trip through his musical past, pop superstar Justin Bieber returned to the stage on Saturday night (Apr 11) to headline the second day of Coachella.

The Canadian singer has not performed at a venue of Coachella's size since 2022, when he appeared at Rock in Rio in Brazil before cancelling the remainder of his international tour due to health issues.

Last year Bieber released the album Swag, quickly followed by his eighth studio album Swag II.

While Bieber has recently played smaller shows, Coachella was billed as the start of his full-scale comeback.

Bieber earlier said in an Instagram post that "We WILL be singing at the top of our lungs on Saturday."

Dressed in a red sweater, shorts and black boots, the 32-year-old artist made good on his promise, playing the role of DJ and taking requests from online viewers.

After opening with several tracks from Swag II, Bieber sat at a computer and began a journey into the past, searching for his videos on YouTube and singing snippets from That Should Be Me, Beauty And A Beat, Never Say Never, the teen pop anthem Baby and other hits.

"This is special," he told the crowd. "This is a night I dreamed about for a long time, so to be here is amazing."

Bieber also showed his old clips on YouTube, as well as moments captured by the ever-present cameras following him and his wife, Hailey Bieber.

ECLECTIC OFFERINGS

Earlier in the day, New York City rockers The Strokes took the stage and announced a new album for June, following a six-year hiatus for the band.

They played anthems including Hard To Explain, Reptilia, Last Nite and Someday.

Other acts in the spotlight Saturday included Nine Inch Noize – the collaboration between legendary industrial band Nine Inch Nails and German producer Boys Noize – who also have an album on the way.

With dramatic lighting and intense sound, the band had fans jumping with versions of songs like Closer, Heresy, The Warning and Copy Of A.

The set by rising indie star Sombr featured Billy Corgan of Smashing Pumpkins, and together they performed the rock band's 1990s hit 1979.

With nine stages, the festival hosted a wide range of genres, including Brazil's Luisa Sonza, influencer-turned-singer Addison Rae, Britain's PinkPantheress, K-pop star Taemin and David Byrne, the legendary co-founder of the band Talking Heads.

Coachella kicked off Friday with performances from headliner Sabrina Carpenter, Moby, Devo and surprise appearances from Lizzo, David Lee Roth and Huntr/x, who performed their Oscar-winning Golden alongside Katseye.

Carpenter's performance of hits like Manchild, Espresso and Please, Please, Please was helped by big-screen stars Sam Elliott, Susan Sarandon and Will Ferrell, who rounded out her 90-minute set.

TOKYO: The US oil benchmark rebounded above US$100 a barrel on Monday (Apr 13) after peace talks between the United States and Iran failed to make a breakthrough, and with US President Donald Trump ordering a blockade of Iranian ports.

Shortly after trading began, a barrel of West Texas Intermediate for May delivery rose around 8 per cent to US$104.50, while June delivery of international benchmark Brent rose 7 per cent to US$102.

Oil prices had sunk and stocks soared last week after Trump agreed to a two-week ceasefire mediated by Pakistan, despite its tenuousness becoming quickly apparent as Israel continued to strike Lebanon and the Strait of Hormuz remained effectively closed.

Equities fell across Asia, with Tokyo, Hong Kong and Seoul off at least 1 per cent, while Shanghai, Sydney, Singapore, Taipei and Jakarta were also down.

The dollar also strengthened to the highest level in a week in a broad rally against most of its peers in early Asian trade on Monday.

The US dollar index, which measures the greenback's strength against a basket of six currencies, was up as much as 0.5 per cent at US$99.187, its highest level since Apr 7. 

The euro was down 0.5 per cent at US$1.1667 as the British pound fell 0.6 per cent to US$1.3383, while the Australian dollar was 0.8 per cent lower at US$0.7014 and the New Zealand dollar was off 0.7 per cent at US$0.5798.

In a lengthy social media post, Trump said his goal was to clear the strait of mines and reopen it to all shipping.

But he said that Iran must not be allowed to profit from controlling the waterway - through which a fifth of global oil and gas usually passes.

"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump wrote on Truth Social.

"Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

He said the blockade would only apply to vessels travelling to or from Iranian ports.

The US military said on Sunday it will blockade all Iranian Gulf ports on Monday at 2pm GMT (10pm, Singapore time), effectively seizing control of maritime traffic.

Iran's Revolutionary Guards said its security forces had full control over the strait and warned enemies would be trapped in a "deadly vortex" in case of any "wrong move".

Iran's navy chief Shahram Irani called Trump's threat "ridiculous and funny", according to state TV.

After the talks - the highest-level meeting between the two sides since the 1979 Islamic revolution - Vance said Washington had made Tehran its "final and best offer," adding: "We'll see if the Iranians accept it."

Iran's Foreign Minister Abbas Araghchi said the rivals had been "inches away" from a deal, writing on X that "Iran engaged with US in good faith to end war".

But he added: "We encountered maximalism, shifting goalposts, and blockade."

Nicole Grajewski, an assistant professor at the Center for International Research at Sciences Po in Paris, warned that a US blockade was "not a minor coercive signal" but would rather be considered an effective resumption of the war.

Fawad Razaqzada, a market analyst at Forex, said: "The fundamental issue remains trust - or rather, the lack of it - between two long-standing adversaries who still appear some distance from common ground."

Investors are also keeping an eye on attempts to resolve the conflict between Israel and Hezbollah, as Lebanese Prime Minister Nawaf Salam said he was pushing to ensure the withdrawal of Israeli forces.

"We will continue to work to stop this war, to ensure the Israeli withdrawal from all our lands, the return of all the prisoners, to rebuild our destroyed villages and towns, and the safe return of the displaced," Salam said.

The prospect of the Middle East crisis continuing for the foreseeable future ramped up inflation fears and weighed on gold amid expectations that interest rates would be kept elevated.

Data Friday highlighted the impact of the conflict on prices, with the US consumer price index spiking at 3.3 per cent in March, its highest since May last year.

MAIDUGURI: Nigerian military jets struck a village market while pursuing Islamist militants in the northeast on Saturday night, with at least 200 civilians feared dead, a councillor for the area and residents said on Sunday (Apr 12).    

The incident happened in a Yobe state village, on the border with Borno state, the heartland of a long-running insurgency that has killed thousands and displaced millions more.