Hopes for a diplomatic resolution to the US-Iran conflict have significantly diminished as peace talks reached a standstill, with neither Tehran nor Washington showing willingness to compromise on their terms.

The latest setbacks include Iranian Foreign Minister Abbas Araqchi’s return from mediator Pakistan without a breakthrough, and US President Donald Trump’s cancellation of a planned visit to Islamabad by his envoys, Steve Witkoff and Jared Kushner. These developments have dealt successive blows to prospects for peace.

This diplomatic impasse leaves the world’s largest economy and a major oil power locked in a confrontation that has already driven energy prices to multi-year highs, fueled inflation, and clouded global economic growth forecasts.

According to a statement from the Iranian government, President Masoud Pezeshkian informed Pakistani Prime Minister Shehbaz Sharif via phone that Tehran would not engage in “imposed negotiations” under threats or blockades. Mr. Pezeshkian emphasized that the United States must first remove “operational obstacles,” including its blockade on Iranian ports, before any groundwork for conflict resolution can be laid. Despite the lack of a breakthrough, Mr. Araqchi described his visit to Pakistan as “very fruitful.” An Iranian diplomatic source in Islamabad reiterated that Tehran would not accept “maximalist demands” from the United States.

President Trump, speaking to reporters in Florida, stated that he scrapped the envoys’ visit due to the extensive travel and expense involved for what he considered an inadequate offer from the Iranians. He later commented on Truth Social that Iran had “offered a lot, but not enough” after the diplomatic trip was called off. Trump also claimed “tremendous infighting and confusion” within Iran’s leadership, asserting, “Nobody knows who is in charge, including them,” and adding, “Also, we have all the cards, they have none! If they want to talk, all they have to do is call!!!”

Conversely, Iranian President Pezeshkian declared on Thursday that there were “no hardliners or moderates” in Tehran, and that the country stood united behind its supreme leader. This message was echoed by Iran’s top negotiator Mohammad Baqer Qalibaf and Mr. Araqchi in recent days.

Adding to regional tensions, Israeli Prime Minister Benjamin Netanyahu reportedly ordered his troops to attack Hezbollah targets in Lebanon, further testing a three-week ceasefire.

The ongoing conflict has seen Iran largely close the Strait of Hormuz, a crucial waterway for one-fifth of global oil and liquefied natural gas shipments, while Washington continues to block Iran’s oil exports.

Earlier, White House press secretary Karoline Leavitt had indicated that the US had observed some progress from the Iranian side and that Vice President JD Vance was prepared to travel to Pakistan. Mr. Vance had previously led an unsuccessful first round of talks in Islamabad this month.

The US-Iran conflict, currently under a ceasefire, began with US-Israeli airstrikes on Iran on February 28, with Iran subsequently striking Israel, US bases, and Gulf states.

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