A marathon round of talks between the U.S. and Iran in Islamabad ended without a deal, and President Trump announced a U.S. blockade of the Strait of Hormuz, escalating pressure on Iran while raising global economic and energy concerns.
High-level U.S. and Iranian delegations met for 21 hours. The U.S. team included Vice President J.D. Vance, special envoy Steve Witkoff and Jared Kushner; Iran’s delegation was led by parliament speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. After talks, Vice President Vance said, “We’ve had a number of substantive discussions with the Iranians. That’s the good news. The bad news is that we have not reached an agreement. And I think that’s bad news for Iran much more than it’s bad news for the United States of America.”
U.S. officials said the two sides failed to reach agreement on several major items: ending uranium enrichment, dismantling enrichment facilities, retrieving uranium stockpiles, accepting a broader regional peace, ending funding for proxies such as Hezbollah, and, critically, fully reopening the Strait of Hormuz without tolls for passage. Those unresolved issues put the fragile ceasefire at risk of collapsing before an April 22 deadline and increased the possibility of renewed direct U.S.-Iran combat.
Pakistan, which helped broker the two-week ceasefire and hosted the talks, said it was “imperative” that both sides uphold the ceasefire and indicated it would try to host further negotiations. Pakistani senator Mushahid Hussain Syed said he felt “at the precipice of a deal,” noting both sides showed willingness to give peace a chance despite heated rhetoric early in the talks.
On the ground at the Strait of Hormuz, U.S. warships crossed the waterway for the first time since the war began as part of operations to begin clearing Iranian mines. The administration said the blockade will stop Iran from selling oil; Trump acknowledged that energy prices could remain high. He told reporters, “Look, regardless, we win,” and said gasoline prices could stay elevated through November.
The conflict and the planned blockade have already affected markets and consumers. AAA reported U.S. gas prices spiked by about 40% since the day before the war began. CBS polling showed political fallout for the president: 64% of Americans disapprove of his handling of the situation in Iran, 66% say the administration has not clearly explained U.S. goals, and the president’s approval on handling inflation is down to 31%. Most Americans say higher gas prices since the war have been a financial hardship.
Iran’s top negotiator and speaker of parliament posted on social media warning Americans, “Soon you’ll be nostalgic for $4 to $5 gas,” reflecting Tehran’s attempt to use energy leverage in the confrontation.
Lawmakers in Washington are returning to face the fallout, with expectations of a supplemental funding request to support the war effort on top of a planned $1.5 trillion defense budget request for next year. The breakdown in talks, the U.S. blockade of a critical trade route that carries about one-fifth of the world’s oil, and ongoing military operations in the Strait have left the region and global markets on edge as the risk of wider conflict remains.