US–Iran Talks Collapse Without Agreement; Hormuz Remains Key Sticking Point

The U.S. and Iran failed to reach an agreement to end their war despite marathon talks that concluded on Sunday in the Pakistani capital Islamabad, jeopardising a fragile ceasefire.

Each side blamed the other for the failure of the 21-hour negotiations to end fighting that has killed thousands and sent global oil prices soaring since it began over six weeks ago.

Vice President JD Vance, who led the U.S. delegation, said negotiations finished without a deal after the Iranians refused to accept American terms to refrain from “developing a nuclear weapon.”

Tehran has long denied seeking to build a nuclear weapon, but there was no immediate comment from the Iranian delegation, while Pakistani mediators called on both countries to maintain the ceasefire.

“It is imperative that the parties continue to uphold their commitment to ceasefire,” Pakistan Foreign Minister Ishaq Dar said, adding that his country will try to facilitate a new dialogue between Iran and the U.S. in the coming days.

Two Pakistani officials, who spoke on condition of anonymity because they were not authorized to brief the press, said a third round of discussions between the delegation heads had finished and the talks would resume after a break. The U.S. vice president, however, told the press that there was no agreement and went to the airport to leave Pakistan.

U.S. President Donald Trump had said he would suspend attacks against Iran for two weeks. Vance’s comments did not indicate what will happen after that time period expires or if the ceasefire will remain in place.

In parallel, Iran’s semi-official Tasnim news agency said that “excessive” U.S. demands had hindered reaching an agreement. Other Iranian media said there was agreement on a number of issues but that the Strait of Hormuz and Iran’s nuclear programme were the main points of difference.

A spokesperson for Iran’s foreign ministry said the talks were conducted in an atmosphere of mistrust. “It is natural that we shouldn’t have expected to reach agreement in just one session,” the spokesperson was quoted as saying by Iranian media.

The U.S. delegation included special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner. Iran’s team included Parliamentary Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi.

Eyes on Hormuz

Iran has put forward to Washington terms that include sanctions relief, recognition of enrichment rights, compensation for war damage and continued control over the Strait of Hormuz, a choke point for about 20% of global energy supplies that Tehran has blocked in retaliation to U.S.-Zionist attacks since on February 28.

Accordingly, the closure of the Strait has proved the biggest strategic advantage for Iran in the war. Around a fifth of the world’s traded oil had typically passed through on over 100 ships a day. Only 12 have been recorded transiting since the ceasefire.

A senior Iranian official told the Reuters news agency that Tehran seeks to be allowed to demand fees for ships passing through the strait as part of any permanent peace deal.

The fee would vary depending on the type of ship, its cargo and unspecified other prevailing conditions, the official said, without elaborating.

Iran’s deputy foreign minister Kazem Gharibabdi has already said that Tehran was drafting a protocol with Oman to require ships to obtain permits and licences to pass the Strait, noting this was intended to facilitate rather than restrict transit.

On its part, Oman said it had held talks with Iran on options to ensure smooth transit but did not say if any agreements had been reached.

Meanwhile, Trump said Saturday on social media that the U.S. had begun “clearing out” the strait.

“Today, we began the process of establishing a new passage and we will share this safe pathway with the maritime industry soon,” U.S. Central Command commander Adm. Brad Cooper later said. The U.S. statement about the destroyers added: “Additional U.S. forces, including underwater drones, will join the clearance effort in the coming days.”