Efforts to revive peace negotiations over the ongoing Iran conflict have stalled, as both sides harden their positions amid continued geopolitical and economic fallout.
Donald Trump on Saturday canceled a planned diplomatic trip by senior envoys Jared Kushner and Steve Witkoff to Pakistan, which has been mediating talks between Washington and Tehran. Speaking to reporters, Trump said Iran had “offered a lot, but not enough,” signaling a lack of progress.
Meanwhile, Masoud Pezeshkian rejected the prospect of negotiations under pressure, stating that Iran would not engage in “imposed negotiations under threats or blockade.”
Although a ceasefire has largely held since early April, both sides continue to enforce blockades in the strategically vital Strait of Hormuz, effectively halting traffic through one of the world’s most critical energy corridors.
The disruption, affecting roughly one-fifth of global oil flows, has been described by the International Energy Agency as the largest supply shock in history, contributing to downgraded global economic growth forecasts.
Trump, in a social media post, criticized the stalled diplomacy, writing: “Nobody knows who is in charge… If they want to talk, all they have to do is call.”
Diplomatic movements continue behind the scenes. Abbas Araghchi met mediators in Islamabad before departing early and later traveled to Oman for talks with Haitham bin Tariq. He also held discussions with foreign ministers from Qatar and Saudi Arabia, and is expected to visit Russia next.
According to Iranian reports, Araghchi plans to outline Tehran’s conditions for ending the conflict, including lifting the Hormuz blockade, establishing a new legal framework for the waterway, securing compensation for damages, and obtaining guarantees against future military action. Nuclear issues are reportedly off the table for now.
On the military front, the United States has intensified enforcement of its blockade. The United States Central Command confirmed intercepting a sanctioned vessel in the Arabian Sea, bringing the total number of redirected ships to 37 since the blockade began. Iran, in response, has deployed small, fast-moving naval units—often referred to as a “mosquito fleet”—to enforce its own restrictions.
As a result, daily vessel transits through Hormuz have plummeted from around 135 before the conflict to nearly zero. Energy markets are already feeling the strain. Oil prices closed at $105.33 per barrel on Friday, up sharply from $72.48 before the conflict began, while US gasoline prices have climbed to roughly $4 per gallon. Liquefied natural gas supplies have also been affected, with European benchmark prices rising by about one-third.
The conflict is reverberating across the broader Middle East. Benjamin Netanyahu ordered strikes on Hezbollah targets in Lebanon over the weekend, prompting evacuation warnings in southern villages. The Israel Defense Forces carried out multiple strikes, while Hezbollah vowed continued retaliation.
The renewed hostilities come despite a temporary ceasefire extension announced on April 23, aimed at paving the way for a longer-term agreement. The truce had followed nearly two months of fighting, triggered by Hezbollah’s involvement in Iran’s response to joint US-Israeli military actions.
“We are acting vigorously according to the rules we agreed upon with the United States,” Netanyahu said, emphasizing Israel’s commitment to both defensive and preemptive measures.
With diplomacy stalled and tensions simmering, the region remains on edge, as global markets brace for further disruption and uncertainty.
