High-stakes peace negotiations between the United States and Iran have ended in Islamabad. Tehran has communicated that it has no immediate plans to resume talks with US yet.
Oil dangerously hovers around $95 per barrel as everyone heads back home.
US Vice President JD Vance confirmed Sunday that the American delegation was leaving Pakistan after over 21 hours of marathon negotiations failed to produce an agreement. The talks were aimed at preserving the ceasefire and preventing further fighting across the Middle East.
Vance said Washington had made its “red lines” clear, particularly demanding firm guarantees that Iran would not pursue nuclear weapons capabilities.
US officials said Tehran declined to accept those conditions, while the team under Iran speaker Ghalibaf said Washington wasn’t in the mood to deal.
Iranian media blamed “excessive” American demands for the talks to end so soon and indicated there were no current plans for additional negotiations.
Everyone had hoped Pakistan’s mediation would transform the temporary truce into a bigger and stronger political settlement, but deep disagreements over nuclear restrictions, sanctions relief, regional security, and control of the Strait of Hormuz made talks complicated.
Markets are now bracing for volatility. This weekend’s uncertainty could drive oil prices sharply higher while pressuring global equities, especially after investors had rallied on expectations of a peace deal over the weekend.
Attention has shifted to Donald Trump, who maintained close contact with negotiators during the talks. The next 24 hours may prove decisive.
Many on X posted that diplomacy may not be finished, even if the Islamabad talks have ended without a deal.