US-Iran Peace Talks Begin in Islamabad as Ceasefire Remains Under Strain
High-stakes negotiations between US and Iranian officials got under way in Islamabad on Friday, as the two-week ceasefire that ended 39 days of conflict remained fragile, with Israel's continued military campaign in Lebanon threatening to derail the agreement before it can be consolidated.
The talks, brokered by Pakistan, represent the first direct diplomatic engagement between Washington and Tehran since the conflict began in late February. Iran has presented a 10-point plan as a basis for a lasting agreement, which US President Donald Trump has described as a "workable basis," though significant gaps remain on core issues.
Background
The US-Iran conflict began on 28 February when US and Israeli forces launched coordinated strikes on Iran, citing concerns about Tehran's nuclear weapons programme. Iran responded by striking neighbouring countries and effectively closing the Strait of Hormuz, through which approximately 20 per cent of the world's oil typically passes. The closure triggered a sharp spike in global energy prices and caused significant economic disruption worldwide.
A two-week ceasefire was agreed less than two hours before a US deadline expired, with the reopening of the Strait of Hormuz as a key condition. The White House press secretary declared the truce "a victory for the United States," with Trump claiming "total and complete victory."
Key Developments
Iran's 10-point plan includes demands for a US commitment to non-aggression, acceptance of Iran's nuclear enrichment programme, the lifting of all sanctions, withdrawal of US forces from the region, and compensation for war damages. Trump has stated there will be "no uranium enrichment" under any deal, indicating the two sides remain far apart on the most contentious issues.
The ceasefire is under immediate strain due to Israel's continued bombardment of Beirut and southern Lebanon. Israel maintains that Lebanon is not covered by the truce, while Iran insists a ceasefire in Lebanon is an "inseparable part" of the agreement. Lebanon's health ministry reported at least 303 deaths from Israeli airstrikes earlier this week.
The Strait of Hormuz remains effectively closed, with Iran stating that passage will be coordinated with its Armed Forces. Iran and Oman have also announced plans to charge transit fees for vessels, a move Trump has warned against. Abu Dhabi's oil chief described the strait as "not open," with access being "restricted, conditioned and controlled" by Iran.
Asian equity markets surged following the ceasefire announcement, and oil prices fell sharply, but gains have since tapered off as uncertainty about the durability of the truce persists. Analysts warn it could take months for the global oil market to fully recover.
Why It Matters
The outcome of the Islamabad talks will have profound implications for global energy markets, regional stability, and the international order. For the UK, a durable resolution would ease energy price pressures and reduce the economic headwinds facing British households and businesses. China is reported to have played a quiet but significant role in encouraging Iran to negotiate, adding a further geopolitical dimension to the talks.
What's Next
The Islamabad talks are expected to continue over several days. UK Prime Minister Keir Starmer, currently on a Gulf diplomatic tour, has been in contact with Trump and is pushing for a "practical plan" to resume shipping through the Strait. A broader international conference on Hormuz security is also being planned.
For the latest updates, see Al Jazeera's coverage of the ceasefire terms.
