The United States remains cautiously optimistic about reaching a new deal with Iran as a two week ceasefire between the two countries nears its end, even though key details of proposed talks in Pakistan are still unsettled.
A senior Iranian official told Reuters that Tehran is “positively reviewing” whether to attend planned negotiations in Pakistan, after previously dismissing the idea, but stressed that no final decision has been made. A Pakistani source involved in the process said efforts are underway to restart talks on Wednesday and indicated that U.S. President Donald Trump could join in person or virtually if an agreement comes within reach.
According to the Pakistani source, “progress is being made” and discussions are on track, raising hopes that diplomacy can prevent a slide back to open conflict once the ceasefire expires. The truce was agreed after weeks of deadly clashes that included U.S. and Israeli strikes on Iran and an Israeli ground offensive into Lebanon, which have killed thousands and rattled global energy markets.
Trump is pushing for a deal that would calm oil prices and stabilise financial markets but insists Washington will not allow Iran to retain the capability to develop nuclear weapons. Iran, for its part, wants an arrangement that averts renewed fighting, eases sanctions and allows its nuclear programme to continue without what it sees as unfair restrictions.
Oil prices, which spiked about 6 percent on Monday amid doubts over diplomacy, eased in early Asian trading on Tuesday on news that talks may resume. Brent crude futures fell 54 cents, or 0.6 percent, to 94.94 dollars per barrel, while U.S. West Texas Intermediate for May delivery dropped 1.11 dollars, or 1.2 percent, to 88.50 dollars.
Despite the tentative opening, tensions remain high after U.S. forces intercepted an Iranian commercial vessel, Touska, over the weekend, accusing it of breaching a U.S. blockade and carrying dual use cargo with possible military applications. Iran’s foreign ministry condemned the move as an attack on its shipping and demanded the immediate release of the ship, crew and their families, warning Washington it would bear full responsibility for any further escalation.
Maritime security analysts say the intercepted vessel likely carried items that Washington regards as dual use goods that could be repurposed for military ends. China, the biggest buyer of Iranian crude, has also expressed concern about the “forced interception” of the ship.
Iranian Foreign Minister Abbas Araqchi argued that U.S. actions during the truce are undermining the diplomatic process, while senior negotiator Mohammad Javad Qalibaf accused Trump of trying to “turn the negotiation table into a table of submission” by tightening a blockade on Iranian ports. He said Iran would not negotiate under duress.
Trump, speaking on U.S. radio, insisted Iran would come to the table and said Washington is close to a deal that would let Tehran rebuild its economy but not acquire a nuclear weapon. White House Press Secretary Karoline Leavitt told Fox News that, thanks to the military operation and Trump’s hardline stance, the U.S. is “on the brink of a deal,” while also stressing that the president has other options if talks fail.
Pakistan is preparing to host the negotiations in Islamabad and has deployed nearly 20,000 security personnel around the capital in anticipation, even though it remains unclear whether all parties will show up. U.S. Vice President JD Vance is expected to travel to Pakistan on Tuesday for the Iran talks, according to U.S. media reports.
The United States has not publicly disclosed the exact end time of the ceasefire, but a Pakistani source said it is due to expire at 6 p.m. Eastern Time on Wednesday, which is midnight GMT and around 3:30 a.m. Thursday in Pakistan. With both sides trading threats over energy infrastructure and regional targets, diplomats warn that failure to extend the truce or clinch a framework deal could quickly reignite a conflict that has already disrupted about one fifth of global oil and liquefied natural gas flows through the Strait of Hormuz.
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