The discussions, held days after a Pakistan-brokered ceasefire, marked the first direct engagement between senior U.S. and Iranian officials since Iran’s 1979 Islamic Revolution. Delegations led by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf met over more than 20 hours at Islamabad’s Serena Hotel, with Pakistani mediators shuttling between the sides.

Despite moments when negotiators appeared close to a framework agreement, talks ultimately stalled over key issues including Iran’s nuclear program, control of the Strait of Hormuz, and access to frozen assets, according to 11 sources familiar with the discussions.

A U.S. official said Washington’s core objective remained ensuring Iran does not obtain a nuclear weapon, while Iranian officials emphasized sovereignty concerns, sanctions relief, and broader security guarantees.

Iran has consistently denied seeking nuclear weapons but maintains its right to uranium enrichment.Sources described a tense and shifting atmosphere, with periods of optimism giving way to deadlock. At one stage, the sides were “80 percent” toward an understanding before unresolved political decisions derailed progress, one source said.

Pakistan played a central mediating role, with Prime Minister Shehbaz Sharif confirming that efforts to bridge differences are ongoing. Officials said communication between Tehran and Washington continues through intermediaries, even after the formal talks ended.

U.S. President Donald Trump said on Monday that Iran had reached out seeking a deal, though this could not be independently verified. A White House spokesperson reiterated that Washington’s position remains unchanged, particularly its demand that Iran abandon any pathway to nuclear weapons.

Iranian officials signaled deep mistrust, citing past negotiations and subsequent military actions, while also indicating willingness to continue discussions under defined conditions.The Strait of Hormuz remains a central point of contention, with Iran asserting control over the waterway and the United States insisting on restoring unrestricted navigation.

The dispute has had significant implications for global energy markets, contributing to volatility and supply concerns.Mediators, including Pakistani officials and regional diplomats, have continued backchannel communications in an effort to revive talks.

Both sides face mounting pressure to de-escalate, with economic costs rising and broader geopolitical risks intensifying.

Pakistan’s Foreign Minister Ishaq Dar said it was “imperative” that both parties maintain their ceasefire commitments, adding that Islamabad would continue facilitating dialogue between Washington and Tehran following the inconclusive talks.

U.S. Vice President JD Vance, who led the American delegation, said the absence of a deal was “bad news for Iran much more than it’s bad news for the United States,” reiterating Washington’s demand for a firm commitment from Tehran not to pursue nuclear weapons capability.

He said the United States had made its “red lines” clear, including preventing Iran from acquiring both nuclear weapons and the means to rapidly develop them.

Iranian officials rejected the U.S. position, with state-linked Tasnim news agency reporting that “excessive” American demands had hindered progress. Tehran signaled that discussions would continue, with technical teams expected to exchange documents in follow-up engagements.

Iran’s parliamentary speaker Mohammad Baqer Qalibaf said the U.S. had failed to build trust during the talks despite what he described as “forward-looking” proposals from the Iranian side. He emphasized longstanding skepticism rooted in past negotiations, saying Washington must demonstrate credibility before progress can be made.

Iran’s foreign ministry also downplayed the outcome, stating that no agreement had been expected in a single session and expressing confidence that diplomatic contacts would continue with Pakistan and other regional actors.

Former Iranian foreign minister Mohammad Javad Zarif attributed the breakdown to what he called U.S. attempts to “dictate” terms, warning that negotiations with Iran would not succeed under unilateral conditions.

The Islamabad meeting marked the highest-level direct engagement between the United States and Iran in more than a decade and the most senior talks since the 1979 Islamic Revolution.

The discussions were aimed at halting a conflict that began over six weeks ago and has driven up global oil prices while threatening key maritime routes.Central to the negotiations was the Strait of Hormuz, a critical chokepoint for roughly one-fifth of global energy supplies.

The U.S. military said it was preparing to ensure safe navigation through the waterway, including mine-clearing operations, while Iranian state media denied any U.S. naval transit in the area.

Tehran has demanded control over the strait, war reparations, and broader ceasefire arrangements extending to regional theaters including Lebanon. U.S. officials have focused on securing freedom of navigation and curbing Iran’s nuclear enrichment capabilities.

The talks took place under tight security in Islamabad, where thousands of paramilitary forces were deployed. Pakistani officials described fluctuating tensions during the discussions, with “mood swings” and intermittent progress reported by sources familiar with the negotiations.

The Iranian delegation, which arrived dressed in black to mourn those killed in the conflict, also raised concerns about a U.S. airstrike on a school near a military compound, an incident the Pentagon has said is under investigation.

Despite the impasse, analysts noted the seniority and size of the Iranian delegation as an indication of Tehran’s willingness to engage, even as deep mistrust continues to define the diplomatic landscape.

Speaking on a Fuji TV programme, Motegi said minesweeping could be an option if naval mines obstruct shipping lanes following a “complete ceasefire,” stressing that any such step would depend on conditions stabilising in the waterway, a conduit for roughly a fifth of global oil shipments.

Japan’s potential involvement would be constrained by its postwar pacifist constitution, which restricts military activity abroad. However, security legislation enacted in 2015 allows overseas deployment of the Self-Defense Forces if a crisis threatens Japan’s survival and no alternative measures are available.

Motegi said Tokyo had no immediate plans to pursue arrangements to secure passage specifically for Japanese vessels, but emphasised the importance of restoring safe navigation through the strait. Japan relies on the route for around 90% of its oil imports, leaving it highly exposed to disruptions.

The near-closure of the Strait of Hormuz amid the ongoing conflict has contributed to a surge in global oil prices, prompting Japan and other countries to release crude from strategic reserves.

Iranian Foreign Minister Abbas Araghchi told Japan’s Kyodo news agency he had discussed with Motegi the possibility of allowing Japan-linked vessels to transit the strait.U.S. President Donald Trump has urged allies, including Japan, to increase their role in securing the waterway, though Tokyo has so far signalled limits based on its legal framework.

Prime Minister Sanae Takaichi said she had briefed Trump on the scope of support Japan could provide under domestic law.

Separately, Motegi said one of two Japanese nationals detained in Iran had been released on Wednesday and would return to Japan. He said the release followed repeated diplomatic representations to Tehran, while confirming that a second Japanese citizen remains in custody.