Islamabad: Prospects for a diplomatic breakthrough in the US-Iran crisis have faded, as talks to end the two-month conflict have reached a standstill, with neither side willing to ease its conditions. Iranian Foreign Minister Abbas Araghchi left Pakistan - the mediator - with little to show from his visit early this week. Meanwhile, President Donald Trump cancelled a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner, dealing a double blow to peace efforts.
According to Oman News Agency, the impasse comes as the crisis continues to disrupt global energy markets, pushing prices to their highest in years, adding to inflationary pressures and weighing on global economic growth. Iranian President Masoud Pezeshkian told Pakistani Prime Minister Shehbaz Sharif in a phone call that Tehran would not enter 'imposed negotiations' under threat or blockade, the Iranian government said. Pezeshkian added that the United States must remove 'operational obstacles', including the blockade on Iranian ports, before any crisis resolution framework can be reached.
Araghchi described his Pakistan visit as 'very fruitful', but an Iranian diplomatic source in Islamabad said Tehran would not accept 'extremist demands' from Washington. Trump told reporters in Florida that he called off the envoys' trip because Iran's offer was insufficient. 'They offered a lot, but not enough,' he said.
Pezeshkian insisted that Iran is united behind its supreme leadership, with no divisions between hardliners and moderates - a message Iranian officials have repeated in recent days. Tensions have escalated further after Israeli Prime Minister Benjamin Netanyahu's office said he had ordered the military to strike Hezbollah targets in Lebanon, a move that threatens a three-week-old ceasefire.
Reports also indicated that Tehran has sharply reduced maritime traffic, affecting about five percent of global oil and LNG shipments, while Washington maintains its policy of blocking Iranian oil exports. White House spokesperson Karoline Leavitt said the United States has seen some progress from Iran, adding that Vice President JD Vance is ready to travel to Pakistan after an inconclusive first round of talks in Islamabad this month.
The conflict began with a temporary ceasefire that followed US-Israeli airstrikes on Iran on 28 February 2026. Since then, Tehran, Israel, US bases and Gulf states have exchanged repeated attacks.