Final offer falls flat as U.S.-Iran talks collapse and ceasefire hangs in the balance

ISLAMABAD (AP) — The United States and Iran ended high-stakes face-to-face talks without an agreement, deepening uncertainty over a fragile two-week ceasefire set to expire on April 22 and raising fears of renewed conflict across the Middle East.

The negotiations, which stretched for 21 hours under Pakistani mediation, were described by U.S. officials as a decisive moment in diplomacy. U.S. Vice President JD Vance characterized Washington’s proposal as its “final and best offer,” signaling a possible turning point after weeks of war and failed negotiations.

American officials said the talks collapsed over Iran’s refusal to commit to abandoning any pathway to a nuclear weapon.
“We need to see an affirmative commitment that they will not seek a nuclear weapon, and they will not seek the tools that would enable them to quickly achieve a nuclear weapon,” Vance said after the talks.

Iran, however, rejected the U.S. position and blamed Washington for the breakdown. Iranian parliament speaker Mohammad Bagher Qalibaf, who led Tehran’s delegation, said it was now up to the United States “to decide whether it can gain our trust or not.”

While Iran has long denied pursuing nuclear weapons, it has insisted on its right to a civilian nuclear program. Iranian officials also signaled a hardening stance following the failed talks, with indications that no new negotiations are currently planned, casting doubt on the future of diplomatic engagement.

Neither side has clarified what will happen once the 14-day ceasefire lapses, and concerns are mounting that hostilities could resume. Pakistani Foreign Minister Ishaq Dar urged both parties to maintain the truce and said Islamabad would continue efforts to revive dialogue.

“It is imperative that the parties continue to uphold their commitment to ceasefire,” Dar said.

Despite these calls, the impasse underscores how little progress was made, with both sides maintaining entrenched positions and placing responsibility on the other.

The diplomatic breakdown has already begun to ripple across global markets. Concerns over Iran’s continued control of the strategically vital Strait of Hormuz, through which roughly a fifth of the world’s traded oil typically passes, have intensified fears of prolonged disruption to energy supplies.

Oil prices and Gulf markets showed signs of volatility as investors reacted to the increased likelihood that the ceasefire could collapse without a political resolution.

Iran’s closure of the strait remains its most significant leverage in the conflict, effectively restricting access to the Persian Gulf and amplifying global economic uncertainty.

Since fighting erupted on Feb. 28 following military actions involving the United States and Israel, the conflict has killed thousands across the region. Casualties include at least 3,000 in Iran, 2,020 in Lebanon, 23 in Israel, and more than a dozen in Gulf Arab states, with widespread infrastructure damage reported.

Tensions remain particularly high in Lebanon, where Israeli forces continue to strike targets linked to Hezbollah despite the ceasefire framework. A reported airstrike Sunday in the southern village of Maaroub killed six people, according to Lebanese state media.

The failed talks reflected deep divisions between the two sides. Iran’s 10-point proposal called for a guaranteed end to the war, control over the Strait of Hormuz, and a halt to attacks on its regional allies, including Hezbollah.

By contrast, the U.S. proposal reportedly included strict monitoring mechanisms, a rollback of Iran’s nuclear program, and provisions to reopen the strait to global shipping.

The wide gap between these positions ultimately proved insurmountable.

While Iran has indicated openness to dialogue in principle, its latest signals suggest a pause or even a halt in formal negotiations. Still, officials on both sides have not ruled out indirect or backchannel communication.

International leaders have begun urging both Washington and Tehran to return to the negotiating table, warning that a collapse of diplomacy could have far-reaching geopolitical and economic consequences.

For now, however, the failure of what may have been the most critical round of talks leaves the region on edge, with the fate of the ceasefire and prospects for peace uncertain.