New Delhi, April 14 -- Iran is ready for another round of negotiations with the US provided there are no "unlawful demands", though Tehran is fully prepared for "all options" if Washington goes ahead with its blockade of Iranian ports, Iranian ambassador Mohammad Fathali said on Monday. The first face-to-face talks between Iran and the US in 47 years, held in Islamabad over the weekend, ended without any breakthrough. US President Donald Trump has imposed a naval blockade of ships entering or leaving Iranian ports as part of efforts to pressure Tehran amid a two-week ceasefire. "If you want progress in any diplomatic process, (both) sides (should be) ready for negotiations. And they should avoid unlawful demands," Fathali told a media briefing at the Iranian embassy. "Our high-ranking officials said we are ready for peace, we are ready for negotiations. But you should know that Iran is also ready for war." The Iranian side had unveiled some "key points" during the negotiations held in Islamabad, including the nuclear issue, war reparations and relief from sanctions, Fathali said. "But I think that they (the US) have some unlawful demands," he said. When Fathali was asked about the US blockade of Iranian ports, he said the American side is "very well aware of our capacity and capabilities". "Our high-ranking officials have said they are ready for all options. You can see how in our response and reaction." While emphasising Iran's belief in international law and freedom of navigation, Fathali contended that the Strait of Hormuz - which has been effectively closed since the conflict began on February 28 - is part of "Iran's territorial waters". Iran, he said, will soon announce a mechanism for using the waterway but declined to say whether Indian ships will have to pay a toll for passage through the strait. "Iran announced that the Strait of Hormuz is (part of) the territorial waters of Iran and Oman, and we said that in the near future, we will announce the mechanism for the passage through this strait," Fathali said. Meanwhile, external affairs ministry spokesperson Randhir Jaiswal told a separate media briefing that India is closely following developments in West Asia, including those related to the Strait of Hormuz. "As we have continuously advocated earlier, de-escalation, dialogue and diplomacy are essential to bring an early end to the conflict. We expect that unimpeded freedom of navigation and global flow of commerce would prevail in the Strait of Hormuz," Jaiswal said....