US-Iran nuclear and security talks in Islamabad stretched into a third round Sunday, with expert-level delegations exchanging written texts and working through economic, military, legal, and nuclear committee discussions at the Serena Hotel. The engagement takes place during a two-week ceasefire in the US-Israeli conflict with Iran, a war that began with US-Israeli strikes on February 28 and paused after Pakistan brokered a halt on April 8. The US delegation is led by Vice President JD Vance, accompanied by Jared Kushner and Middle East envoy Steve Witkoff. Iran's delegation is headed by Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi, with Supreme National Defence Council Secretary Ali Akbar Ahmadian and central bank governor Abdolnaser Hemmati also at the table. The two sides entered negotiations with sharply divergent demands. Washington is pressing for restrictions on Iran's nuclear enrichment and removal of nuclear material; Tehran is seeking full sanctions relief, recognition of its nuclear rights, access to roughly $7 billion in frozen assets, and a framework governing Strait of Hormuz navigation. Iran's pre-condition that Israeli strikes in Lebanon cease nearly derailed talks on Friday. Analysts and officials caution that the breadth of unresolved issues, including regional proxy networks, missile ranges, and sequencing of concessions, makes a substantive breakthrough within this initial engagement unlikely.
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.