ISLAMABAD — Iran’s Foreign Minister Abbas Araghchi made a brief return to Islamabad on Sunday, as Pakistani leadership engaged in efforts to rekindle ceasefire negotiations between Tehran and Washington. The diplomatic maneuver occurred as U.S. President Donald Trump indicated a preference for direct phone communication over in-person envoy missions.
Araghchi’s presence in the Pakistani capital followed his departure the previous day, which had initially fueled uncertainty regarding a second round of talks. However, Iranian state media confirmed his return before continuing his journey to Moscow on Sunday. Prior to his visit to Pakistan, Araghchi had been in Oman, a nation that has previously played a mediating role and is strategically located across the Strait of Hormuz.
The White House had previously announced plans to dispatch envoys Steve Witkoff and Jared Kushner to Islamabad to build upon face-to-face discussions held earlier in the month. However, shortly after Araghchi’s Saturday departure, President Trump announced the cancellation of this mission, citing a lack of progress with Iran. ‘If they want, we can talk but we’re not sending people,’ Trump stated in an interview with Fox News on Sunday, adding via social media, ‘All they have to do is call!!!’
Indirect Talks Continue Amidst Diplomatic Flux
Despite the pronouncements regarding envoy missions, two Pakistani officials, speaking on condition of anonymity due to their inability to speak with the media, confirmed that indirect talks between the U.S. and Iran were ongoing. President Trump had, the previous week, extended the ceasefire agreement, initially established on April 7, which had largely halted hostilities that commenced with joint U.S.-Israeli strikes on February 28. Nevertheless, a definitive resolution to the conflict, which has resulted in thousands of casualties and significantly impacted the global economy, remains elusive.
A tense standoff persists in the Strait of Hormuz, a critical chokepoint for global energy transit, accounting for one-fifth of all traded oil and natural gas. Iran has imposed restrictions on maritime traffic through the strait, while the U.S. maintains a blockade of Iranian ports.
Strait of Hormuz Tensions and Negotiation Hurdles
According to a regional official, who requested anonymity as they were not authorized to discuss the matter, Iran is seeking Oman’s support for a mechanism to collect tolls from vessels traversing the strait. The response from Oman was not immediately clear. This official, involved in mediation efforts, also indicated that Iran’s primary condition for further talks is the cessation of the U.S. blockade. Pakistani mediators are reportedly working to bridge the substantial differences between the two nations.
Araghchi also held phone conversations with his counterparts in Qatar and Saudi Arabia on Sunday. Even prior to the latest developments, Iran’s Foreign Ministry had emphasized that any talks would be indirect, with Pakistani officials acting as intermediaries. This stance reflects Tehran’s caution, stemming from previous rounds of indirect negotiations that concluded with Iran facing attacks from the U.S. and Israel.
Economic Repercussions and Military Posturing
The economic ramifications of the ongoing conflict are escalating two months into the war. Global shipments of oil, liquefied natural gas, fertilizer, and other vital supplies are being disrupted by the near-closure of the strategic strait. Both sides continue to issue military threats. Iran’s joint military command issued a warning on Saturday, stating that ‘if the U.S. continues its aggressive military actions, including naval blockades, banditry, and piracy’ it would face a ‘strong response.’ President Trump had, the previous week, ordered the military to ‘shoot and kill’ any small boats perceived as attempting to lay mines in the waterway.
Speaking to journalists on Saturday, prior to a security incident at the White House Correspondents’ Dinner, President Trump claimed that within ten minutes of canceling the trip to Islamabad for Witkoff and Kushner, Iran submitted a ‘much better’ proposal. He did not provide further details but reiterated one of his conditions: that Iran ‘will not have a nuclear weapon.’ The status of Iran’s enriched uranium remains a central point of contention. The U.N. nuclear watchdog agency reports that Tehran possesses 440 kilograms (970 pounds) of uranium enriched to 60% purity, a level considered a short technical step away from weapons-grade material.
Market Reactions and Conflict Casualties
Syed Mohammad Ali, an independent political analyst in Pakistan, suggested that the delay in talks should not be viewed as a definitive setback, noting that indirect negotiations are progressing. He emphasized that easing tensions between Washington and Tehran is a gradual process requiring patience. ‘But the good thing is that the ceasefire is holding, and both sides have a desire to end the conflict in a way that does not backfire at home,’ Ali commented.
Since the war began, casualty figures have mounted, with at least 3,375 people killed in Iran and at least 2,509 in Lebanon, where fighting between Israel and Hezbollah resumed shortly after the Iran war commenced. Additionally, 23 people have died in Israel, and more than a dozen in Gulf Arab states. Thirteen U.S. service members and six U.N. peacekeepers in southern Lebanon have also been killed, along with 15 Israeli soldiers in Lebanon.
A separate ceasefire between Israel and the Iranian-backed Hezbollah group has been extended for three weeks, though Hezbollah has not been directly involved in the Washington-brokered diplomacy. The market reacted to the news of stalled ceasefire talks, with oil prices rising at the market’s opening on Sunday. West Texas Intermediate crude saw a 2% increase, trading at $96.50 a barrel, a 44% rise since before the war began. Brent crude, the international benchmark, traded at $107.75 per barrel, up approximately 3% from Friday and 48% since the war’s inception, driven by concerns over the disruption of oil shipments through the Persian Gulf.
