US President Donald Trump has shelved plans to send diplomats to Islamabad for Iran-US nuclear talks, saying the next round will happen by phone or in Washington instead. Trump cancelled his team's travel to Pakistan after Iran showed reluctance to engage directly, declaring the US held the stronger hand: 'We have all the cards.' He praised Pakistan's role in brokering dialogue and said Islamabad would stay involved in the process. Iranian Foreign Minister Abbas Araghchi made two stops in Islamabad over the weekend, meeting Prime Minister Shahbaz Sharif and army chief Asim Munir to convey Iran's response to US proposals and its framework for ending the war. He then flew to Moscow. Two US Air Force C-17 aircraft carrying security staff and equipment left Pakistan after the venue change became clear. Deputy PM Ishaq Dar confirmed the lifting of movement restrictions around the Serena Hotel and the red zone. The Strait of Hormuz remains closed. Iran's Revolutionary Guards said lifting the blockade is not on the table, calling control of the strait 'definitive strategy.' The US military intercepted the Sevan, a vessel it identified as part of a 19-ship shadow fleet moving Iranian oil. A total of 37 ships have been redirected since the blockade began. British PM Keir Starmer and Trump discussed restoring freedom of navigation in the strait. Araghchi separately spoke with his Saudi, Turkish, Egyptian, and Qatari counterparts, signalling active regional diplomacy even as direct US-Iran talks stall on format and venue.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
