The United States expressed confidence that peace talks with Iran would proceed in Pakistan, with a senior Iranian official indicating Tehran was considering participation. However, significant uncertainty persists as a ceasefire deadline approaches.
President Trump aims for an agreement to stabilize oil prices and stock markets, while insisting Iran will not develop nuclear weapons. Iran seeks sanctions relief and an end to the war, leveraging its control of the Strait of Hormuz. An Iranian official stated Tehran was positively reviewing participation, despite prior refusals, though no final decision has been made. Momentum suggests talks could resume with potential attendance by Trump, either in person or virtually.
Optimism surrounding the talks led to a drop in oil prices and a rebound in Asian stocks. Brent crude futures declined to $94.94 a barrel, and WTI futures fell to $88.50.
Tensions remain high as Iran condemned a US action against its commercial vessel, the Touska, demanding its release and blaming the US for any escalation. US Central Command stated the vessel failed to comply with warnings and violated a US blockade. China, a major buyer of Iranian crude, expressed concern over the interception.
Iran's Foreign Minister cited US truce violations as a major obstacle, while negotiator Mohammad Baqer Qalibaf accused Trump of increasing pressure through port blockades, calling it an attempt to force submission rather than negotiate.
Thousands have been killed since the war began, significantly impacting global energy supplies and economic stability. The US maintains its blockade of Iranian ports, and Iran has reimposed its blockade on the Strait of Hormuz, which handles a substantial portion of global oil and LNG supply. Pakistan has been mediating for Washington to end its blockade.
President Trump stated that Iran would negotiate for a fair deal and rebuild its country, but would not be allowed to possess nuclear weapons. The two-week ceasefire is set to expire soon, with a Pakistani source indicating it would end Wednesday evening Eastern time.
Pakistan is preparing to host the talks, deploying nearly 20,000 security personnel. US Vice President JD Vance is reportedly traveling to Pakistan for discussions. Trump had previously warned of significant destruction in Iran if its terms were rejected, to which Iran responded with threats against Gulf Arab infrastructure.