Efforts to narrow differences between the United States and Iran are continuing through mediation by Pakistan, even after planned face-to-face talks collapsed following a decision by Donald Trump to cancel a diplomatic visit.
Sources involved in the mediation process said negotiations have not stopped but are now being conducted remotely. The setback came after Trump called off a trip by his envoys, including Steve Witkoff and Jared Kushner, to Islamabad and suggested that Iran should initiate contact if it wants a deal.
Iran has proposed a phased approach to resolving tensions. According to sources, Tehran’s plan prioritises ending the ongoing conflict and addressing disruptions to Gulf shipping before tackling more contentious issues such as its nuclear programme. However, Washington has maintained that nuclear concerns must be addressed from the outset.
Diplomatic momentum weakened after the cancellation of in-person talks in Islamabad, where Iranian Foreign Minister Abbas Araqchi had held multiple meetings over the weekend. He later travelled to Russia for discussions with President Vladimir Putin.
Key disagreements remain over Iran’s nuclear ambitions and control of the strategically vital Strait of Hormuz. The continued uncertainty has impacted global markets, with oil prices rising -Brent crude increasing by about 2.5 per cent to roughly $108 per barrel.
Trump reiterated his stance in a media interview, stating that Iran must abandon any pursuit of nuclear weapons as a precondition for talks, adding that communication channels remain open if Tehran is willing to engage.
Iranian officials described their proposal as a step-by-step framework. The initial phase would involve ending hostilities involving the United States and Israel, alongside guarantees against renewed conflict. Subsequent stages would address sanctions, maritime access, and reopening shipping routes through the Strait of Hormuz under Iranian oversight. Only later would broader issues, including uranium enrichment, be discussed.
With no immediate plans for direct meetings, Islamabad has returned to normal after a week-long lockdown imposed in anticipation of high-level talks. Venues previously reserved for negotiations have resumed regular operations.
Pakistani officials indicated that discussions will continue remotely until sufficient progress is made to justify a formal meeting. “The draft will be negotiated remotely until both sides reach some level of consensus,” a source familiar with the process said.
The United States continues to insist that Iran dismantle its stockpile of highly enriched uranium and halt further enrichment activities. While a ceasefire has paused US-Israeli strikes that began on 28 February, no comprehensive agreement has yet been reached, and the conflict has already resulted in significant casualties and economic disruption.
Tensions are further complicated by Iran’s restrictions on shipping through the Strait of Hormuz and the US blockade of Iranian vessels - both major sticking points in negotiations.
Domestically, Trump is facing mounting pressure to end the conflict amid declining approval ratings. Meanwhile, Iran retains leverage through its ability to disrupt a waterway responsible for a substantial portion of global oil supply.
The situation is also deteriorating in Lebanon, where intensified Israeli strikes have resulted in multiple casualties, marking the deadliest day since a ceasefire was brokered earlier this month. Iran has indicated it will not engage in broader negotiations unless the ceasefire in Lebanon holds.
The conflict there stems from Israel’s operations against Hezbollah, which has exchanged cross-border fire in support of Iran. Both Israel and Hezbollah have accused each other of violating the truce, while Israeli forces have ordered large-scale evacuations in affected areas.
With both sides holding firm on key demands, analysts suggest the standoff may evolve into a prolonged test of endurance, with economic pressure and strategic positioning shaping the eventual outcome.
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