Pakistan-hosted US-Iran talks stretch into third round

Pakistan found itself at the centre of one of the most closely watched diplomatic efforts in the region on Saturday as direct talks between the United States and Iran in Islamabad moved into a third round without an immediate breakthrough. The negotiations, hosted with Pakistan’s mediation, continued deep into the night as both sides tried to narrow serious differences on sanctions, regional security and strategic waterways that have become central to the wider conflict.

The discussions brought together senior delegations led by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, with Iranian Foreign Minister Abbas Araghchi also involved. After the initial session, specialist groups from both sides reportedly moved into separate technical exchanges covering political, legal and economic matters. By the end of the second round, written proposals had been shared, suggesting that while mistrust remained intense, neither side was prepared to walk away immediately.

Officials familiar with the talks indicated that the largest obstacle was the Strait of Hormuz, a waterway vital to global energy flows. Iran was said to be pressing for a position that would preserve its leverage over the corridor, while Washington insisted that navigation through the strait must remain open and free from disruption. Alongside that dispute, Tehran was also pushing demands linked to sanctions relief, access to frozen funds, war-related compensation and a broader ceasefire framework that would cover Lebanon as well.

The American side approached the negotiations with a different set of priorities. US officials were focused on long-term guarantees that Iran would not pursue a nuclear weapons path, while also seeking movement on maritime security and a phased sanctions arrangement rather than sweeping concessions at the outset. Prime Minister Shehbaz Sharif, who met both delegations separately before the talks, described the Islamabad process as a possible first step toward a more durable peace, while Pakistani officials stressed that the country was acting as a facilitator rather than a partisan player.

Iranian voices close to the process signalled caution from the start. Their position, as reflected in public messaging around the talks, was that Washington was asking for too much after weeks of military confrontation and pressure. Tehran also made clear that any diplomatic opening would be judged against events on the ground, especially whether ceasefire commitments in the broader region were being honoured in practice. That meant the Islamabad meetings were not just about a bilateral US-Iran understanding, but about whether a wider de-escalation architecture could hold.

The importance of the talks lies partly in their rarity. High-level, face-to-face contact between the United States and Iran has remained exceptionally unusual since the 1979 revolution, and the Islamabad round was therefore significant even without a breakthrough. For Pakistan, the very fact that both sides accepted its venue and mediation underscored a notable diplomatic opening, especially after weeks of efforts by Islamabad to help create space for a temporary pause in hostilities.

The setting also carried wider geopolitical weight. The talks took place after a fragile ceasefire had interrupted a dangerous cycle of conflict involving Iran, the United States, Israel and other regional theatres. Because the Strait of Hormuz carries a major share of the world’s oil and gas shipments, even limited instability there can send shockwaves through energy markets, inflation expectations and shipping costs. That gave the Islamabad negotiations consequences far beyond the conference rooms in which they were held.

For Pakistan, the impact is both strategic and practical. A successful mediation track could strengthen Islamabad’s diplomatic standing at a time when it is trying to rebuild international confidence and project itself as a stabilising actor. It could also reduce the risk of another regional escalation that would hit Pakistan through oil prices, trade disruptions, investor anxiety and broader security uncertainty. Even without a settlement, hosting the talks has already placed Islamabad at the centre of an issue with global economic implications.

The outlook remains uncertain, but the continuation of the talks into a third round suggested that both sides still saw value in keeping the channel open. The distance between the American and Iranian positions remained substantial, and no quick fix appeared likely. Still, Pakistan’s mediation created a framework in which dialogue continued despite sharp disagreements, leaving open the possibility that further rounds, confidence-building measures or narrower technical understandings could yet emerge from a process that is still fragile but not finished.