US–Iran Peace Talks in Islamabad End Without Breakthrough as Tehran Sets Tough Red Lines on Strait of Hormuz, Sanctions Relief and War Reparations
Senior officials from the United States and Iran met in Islamabad on Saturday under Pakistani mediation, in a high-stakes diplomatic effort aimed at ending the six-week-old conflict that has destabilised the Middle East and disrupted global energy markets.
During the discussions, Tehran presented its key “red lines”, insisting that Washington must acknowledge these conditions before any formal face-to-face negotiations on a broader peace settlement can move forward.
According to statements from the White House and the office of Pakistan’s Prime Minister Shehbaz Sharif, the Pakistani leadership hosted separate high-level meetings with both delegations to explore a possible framework for ending hostilities.
The US delegation included Vice President J.D. Vance, Special Envoy Steve Witkoff, and senior presidential adviser Jared Kushner.
Meanwhile, Iran was represented by Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi, who met Pakistani officials to discuss the timing, structure, and diplomatic parameters of potential negotiations.
Iranian state media reported that Tehran conveyed a set of non-negotiable demands during discussions with the Pakistani leadership.
These included recognition of Iran’s authority over navigation arrangements in the strategically crucial Strait of Hormuz, the release of Iranian financial assets frozen abroad, payment of compensation for damages caused during the conflict, and a comprehensive ceasefire across the region.
Iranian government spokesperson Fatemeh Mohajerani emphasised that while Iran remains open to dialogue, the country would approach negotiations with extreme caution due to deep mistrust of US intentions.
“We are prepared for talks, but with our finger on the trigger,” Mohajerani said on state television, signalling Tehran’s guarded diplomatic posture.
Reports suggested that the United States may consider easing restrictions on certain frozen Iranian funds held in Qatar and other international financial institutions, though American officials quickly denied that any final agreement had been reached on sanctions relief.
The US delegation arrived early Saturday morning at an Islamabad airbase, where they were received by Pakistan’s Army Chief Field Marshal Asim Munir and Foreign Minister Ishaq Dar.
Pakistan played a central role as mediator, facilitating both indirect and direct communication between Washington and Tehran in an attempt to preserve the fragile ceasefire that has temporarily reduced hostilities in the region.
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Recent updates indicate that the marathon negotiations, which lasted nearly 21 hours, ended without a formal agreement, highlighting deep divisions over Iran’s nuclear programme, sanctions relief, and control of the Strait of Hormuz.
Despite the lack of a breakthrough, diplomatic channels remain open, with international stakeholders urging both sides to continue negotiations in order to prevent further escalation and stabilise global oil supply routes that pass through the Strait of Hormuz — one of the world’s most critical energy corridors.
Some reports also indicate that geopolitical tensions remain high, with discussions over naval access and maritime security emerging as key sticking points in the Islamabad talks.
The Islamabad dialogue represents one of the most significant direct engagements between the United States and Iran in recent years, reflecting mounting global pressure to prevent further escalation in a conflict that has already impacted energy prices, regional stability, and international trade.
