US-Iran peace hopes fade as Trump scraps talks

Islamabad. Hopes of a diplomatic breakthrough in the U.S.-Israeli war with Iran faded at the start of a new week, with talks aimed at ending the two-month conflict at a standstill and both Tehran and Washington showing little willingness to soften their positions.

Iranian Foreign Minister Abbas Araqchi left Pakistan, which is mediating the talks, empty-handed over the weekend, while U.S. President Donald Trump cancelled a planned visit to Islamabad by his envoys Steve Witkoff and Jared Kushner, dealing consecutive blows to peace prospects.

The deadlock leaves the world’s largest economy and a major oil power locked in a confrontation that has already pushed energy prices to multi-year highs, fuelled inflation and dimmed global growth prospects.

Iranian President Masoud Pezeshkian told Pakistani Prime Minister Shehbaz Sharif in a phone call that Tehran would not enter “imposed negotiations” under threats or blockade, according to a government statement. He said the United States must first remove “operational obstacles”, including its blockade on Iranian ports.

Araqchi nonetheless described his visit as “very fruitful”, though an Iranian diplomatic source in Islamabad said Tehran would not accept “maximalist demands” from Washington.

Trump told reporters in Florida that he scrapped the envoys’ visit, saying the proposed terms were inadequate. “Iran offered a lot, but not enough,” he said, adding on Truth Social that there was “tremendous infighting and confusion” within Iran’s leadership.

Pezeshkian said there were “no hardliners or moderates” in Tehran, insisting the country was united behind its supreme leader. Mohammad Baqer Qalibaf and Araqchi echoed similar sentiments.

Adding to regional tensions, Israeli Prime Minister Benjamin Netanyahu ordered strikes on Hezbollah targets in Lebanon, further testing a fragile ceasefire.

Tehran has largely closed the Strait of Hormuz, which typically carries about one-fifth of global oil and liquefied natural gas shipments, while Washington continues to restrict Iran’s oil exports.

White House press secretary Karoline Leavitt had earlier said the U.S. had seen some progress from Iran and that Vice President JD Vance was prepared to travel to Pakistan after leading an unsuccessful first round of talks in Islamabad earlier this month.

The conflict, despite a ceasefire now in place, began with U.S.-Israeli airstrikes on Iran on February 28. Tehran has since launched retaliatory strikes on Israel, U.S. bases and Gulf states.