Iranian officials have accused the United States of conducting military strikes while diplomatic talks were ongoing. The accusation comes amid heightened tensions following joint US-Israel military operations against Iran that began in February. The US has reportedly targeted Iranian nuclear facilities and imposed a naval blockade, actions Iran says show bad faith.
The negotiations in Islamabad are now at risk. Prediction markets reflect this breakdown: The next US-Iran diplomatic meeting market has dropped, while the Iran Military Action market is pricing a 100% probability of escalation. Observers are watching for statements from Donald Trump and Iranian Foreign Minister Abbas Araghchi for signs of next steps.