A 21-hour round of high-level negotiations in Islamabad between U.S. and Iranian delegations ended without an agreement, and President Trump announced a U.S. blockade of the Strait of Hormuz, sharply raising economic and energy concerns worldwide.
The U.S. team — including Vice President J.D. Vance, special envoy Steve Witkoff and Jared Kushner — met Iran’s delegation headed by parliament speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. After the session, 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 talks collapsed over several major issues: ending or dismantling uranium enrichment and its facilities, returning existing stockpiles of enriched uranium, accepting a broader regional peace framework, halting funding for proxy groups such as Hezbollah, and fully reopening the Strait of Hormuz without tolls for passage. Those unresolved points put a fragile ceasefire at risk of unraveling before an April 22 deadline and raised the prospect of renewed direct combat between U.S. and Iranian forces.
Pakistan, which helped broker the two-week ceasefire and hosted the talks, urged both sides to preserve the ceasefire and signaled willingness to host further negotiations. Pakistani senator Mushahid Hussain Syed said he felt the parties were “at the precipice of a deal,” noting both delegations had shown some willingness to give diplomacy a chance despite early tensions.
On the ground in the Strait of Hormuz, U.S. warships transited the waterway for the first time since the start of the war as part of operations to begin clearing Iranian mines. The administration said the blockade aims to stop Iran from selling oil. President Trump acknowledged the move could push energy prices higher, telling reporters, “Look, regardless, we win,” and warning gasoline prices could remain elevated through November.
Markets and consumers have already felt the effects. AAA reported U.S. gas prices spiked roughly 40% compared with the day before the war began. A CBS poll found 64% of Americans disapprove of the president’s handling of the situation in Iran, 66% say the administration has not clearly explained U.S. goals, and approval for his handling of inflation has fallen to 31%. Most respondents called higher gas prices since the war a financial hardship.
Iran’s top negotiator and parliament speaker posted a taunting message on social media, warning Americans, “Soon you’ll be nostalgic for $4 to $5 gas,” signaling Tehran’s intent to use energy leverage in the standoff.
Lawmakers in Washington are preparing to confront the fallout: officials expect a supplemental funding request to support operations on top of a planned $1.5 trillion defense budget request for next year. The breakdown in talks, the blockade of a strategic route that carries about one-fifth of the world’s oil, and ongoing military activity in the Strait have left regional stability and global markets on edge as the risk of a wider conflict persists.