ISLAMABAD/WASHINGTON — Iran signaled it will not accept what it called “maximalist demands” from the United States as Pakistan hosted a renewed diplomatic push to salvage ceasefire talks over a conflict that has entered its ninth week, killed thousands, and disrupted global energy markets.
Iranian Foreign Minister Abbas Araqchi arrived in Islamabad on Friday and met with Pakistani Prime Minister Shehbaz Sharif and senior military and political leaders. The visit comes as Washington prepares to send envoys Steve Witkoff and Jared Kushner to the Pakistani capital, part of efforts by U.S. President Donald Trump’s administration to revive negotiations. However, Tehran ruled out direct talks with U.S. officials, insisting that any communication would be conducted indirectly through Pakistani mediators.
An Iranian diplomatic source said Tehran would not agree to sweeping U.S. conditions, underscoring a persistent impasse. U.S. Defense Secretary Pete Hegseth said Iran still has an opportunity to reach a “good deal” if it abandons its nuclear weapons ambitions in verifiable terms. The White House, meanwhile, reported signs of limited progress in recent days and expressed hope for further movement.
The conflict, which began on February 28 following military action by the United States and Israel, has severely disrupted global oil flows. Iran has largely restricted passage through the Strait of Hormuz, a critical corridor that typically handles about one-fifth of global oil shipments, while the United States continues to enforce a blockade on Iranian exports. Shipping traffic through the strait has dropped sharply, with only a handful of vessels transiting daily compared with about 130 before the war.
Oil markets have reacted sharply to the uncertainty. Brent crude prices surged earlier in the week, climbing to multi-year highs amid fears of prolonged disruption, though prices later fluctuated following policy adjustments such as a U.S. extension of waivers to ease energy transport constraints.
Despite the tensions, an indefinite ceasefire announced by Trump and extended this week has largely paused major hostilities. Iran has partially reopened its airspace, resuming international commercial flights from Tehran’s Imam Khomeini International Airport for the first time since the war began. Flights to destinations including Istanbul, Muscat, and Medina have restarted, offering a tentative signal of stabilization.
Security in Islamabad has been significantly tightened ahead of the talks, with checkpoints, road closures, and heavy troop deployments disrupting daily life across the city.
The broader regional picture remains volatile. In Lebanon, where fighting between Israel and the Iran-backed Hezbollah group erupted shortly after the war began, a separate ceasefire has been extended by three weeks following U.S.-brokered talks. However, violence persists in southern Lebanon, with reported casualties from recent Israeli strikes and ongoing military operations near the Litani River.
Casualty figures across the region continue to rise. Iranian authorities report more than 3,000 deaths, while Lebanon has recorded over 2,400 fatalities. Additional casualties have been reported in Israel, Gulf states, and among international peacekeepers.
Pakistan has positioned itself as a key intermediary, seeking to bring both sides back to the negotiating table. For now, diplomacy remains indirect and fragile, with both Washington and Tehran holding firm to core demands as global markets and regional stability hang in the balance.
