The United States has expressed confidence that peace talks with Iran could resume in Pakistan, even as uncertainty and tensions remain high ahead of the ceasefire deadline.
A two-week ceasefire between the US and Iran is set to expire soon. Despite Iran earlier rejecting a second round of talks this week, sources involved in the discussions say there is fresh momentum for negotiations to restart on Wednesday in Islamabad.
A Pakistani source confirmed that preparations are underway and talks are “on track.” US President Donald Trump may attend the talks either in person or virtually if a final agreement is reached. US Vice President JD Vance is also expected to travel to Pakistan for the negotiations.
Iran has not officially confirmed its participation but indicated it is “positively reviewing” the proposal. Reports suggest Tehran has informed regional mediators about possibly sending a delegation, although no final decision has been made.
Market Reaction and Global Impact
Global oil prices dropped as optimism around possible talks increased. Brent crude fell by over $1 to around $94 per barrel, while US crude also declined. Earlier, oil prices had surged due to uncertainty about the talks.
Key Issues and Rising Tensions
Tensions remain high between both nations. Iran has criticized the US for blocking its ports and seizing an Iranian vessel named “Touska,” calling it a violation of the ceasefire.
Iran has demanded the immediate release of the vessel, its crew, and their families. The US claims the ship carried dual-use items and failed to comply with warnings.
Iranian officials have warned of a strong and immediate response to any further aggression. They also stated that negotiations cannot happen under pressure or threats.
Nuclear and Strategic Concerns
The US has made it clear that any deal must ensure Iran does not develop nuclear weapons. Meanwhile, Iran aims to ease sanctions and avoid further conflict without limiting its nuclear program.
Iran is also leveraging its strategic position over the Strait of Hormuz, a key global oil route, to strengthen its negotiating stance.
Ceasefire Deadline and Next Steps
The ceasefire is expected to end soon, possibly within hours after Wednesday, depending on time zones. Pakistan has deployed around 20,000 security personnel in Islamabad in preparation for the talks.
While both sides show signs of willingness to negotiate, strong rhetoric, military warnings, and unresolved disputes continue to create uncertainty over whether the talks will actually take place.
The outcome of these discussions could significantly impact global oil markets, regional stability, and the future of US-Iran relations.
