US Iran talks expected in Islamabad as tensions remain high

The United States has expressed confidence that peace talks with Iran will proceed in Islamabad, even as uncertainty persists over Iran’s final decision to participate and a fragile ceasefire nears its end.

A senior Iranian official told Reuters that Tehran is “positively reviewing” participation in the negotiations, reversing earlier hesitation but still not confirming attendance. Meanwhile, US officials maintain that preparations for the second round of talks are moving forward, with a delegation expected to travel soon.

The talks are being facilitated by Pakistan, which has positioned itself as a mediator between Washington and Tehran amid rising regional tensions. According to diplomatic sources, the discussions are tentatively scheduled for Wednesday, though formal confirmation from the White House remains pending.

US President Donald Trump has pushed for an agreement that would prevent further increases in global oil prices and avoid shocks to financial markets. However, Washington continues to insist that Iran must not acquire the capability to develop nuclear weapons.

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Iran, on the other hand, is seeking relief from sanctions and aims to retain its nuclear program while leveraging its strategic position near the Strait of Hormuz as a bargaining tool in negotiations.

Market reactions have already reflected expectations of diplomacy, with oil prices falling and global stocks recovering after earlier volatility linked to stalled talks. Brent crude and US benchmark prices both declined in early Asian trading following optimism over renewed engagement.

Despite diplomatic movement, tensions remain high. Iran has accused the United States of maritime aggression following an incident involving a commercial vessel, while US Central Command maintains the ship violated blockade warnings.

Analysts say the situation remains fluid, with both sides continuing parallel pressure tactics even as they prepare for potential negotiations that could have major implications for global energy stability and regional security.