President Donald Trump has cancelled a planned diplomatic trip to Pakistan by his envoy Steve Witkoff and adviser Jared Kushner, signalling a shift in how Washington wants Iran talks to proceed. Trump said Iran can contact the US directly, suggesting he wants Tehran to make the first move rather than Washington continuing to shuttle intermediaries around the region.
The cancellation is notable because Witkoff has been one of Trump's primary back-channel operators, and Kushner has played an informal but influential role in Middle East diplomacy. Pulling both from a scheduled visit removes a key pressure-release valve from what had been a quietly active diplomatic track.
Trump's Nuclear Warning
Trump sharpened his rhetoric on Iran's nuclear programme, saying that everything achieved in the region would be "peanuts" if Iran obtained a nuclear weapon. The comment is consistent with his long-held position that a nuclear-armed Iran represents the single largest destabilising risk in the Middle East, but the phrasing also signals that his patience with the current diplomatic pace is wearing thin.
Iran has not yet publicly responded to Trump's call for direct contact. The ball is now formally in Tehran's court, at least in terms of optics. Whether Iran's leadership is willing to pick up that phone, literally or diplomatically, is the central question shaping the next phase of this standoff.
What to Watch
The trip cancellation removes a near-term diplomatic milestone that markets and regional governments had been tracking. Gulf states, which have significant exposure to any escalation between the US and Iran, will be watching closely for whether Tehran responds or lets the silence stretch. An extended stalemate raises the risk of miscalculation on both sides.
For global oil markets, the Iran nuclear file remains a live variable. Any credible movement toward direct US-Iran talks could ease supply-risk premiums; a breakdown or escalation would likely have the opposite effect. Investors in energy, defence, and regional emerging markets will be recalibrating based on how quickly, or slowly, Tehran responds to Trump's public invitation.
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.
