Pakistan Mediates US-Iran Talks Amid Conflicting Reports on Second Round

Pakistan is mediating efforts to convene a second round of talks between the United States and Iran in Islamabad this week, following a first round that addressed regional tensions. President Trump stated in interviews that the ceasefire expires Wednesday evening Washington time and is highly unlikely to be extended without an agreement.

Pakistani officials expressed optimism that the talks would proceed, viewing Iranian objections and Trump's threats as posturing for domestic audiences. A Pakistani source told the New York Post that Iran's hard stance was aimed at extracting maximum advantage.

Security measures in Islamabad included road closures and a cordon around the city center, with two major hotels cleared to house potential delegations.

Pakistan's involvement stems from its neutrality and historical diplomatic ties. The country's military chief, Field Marshal Asim Munir, visited Tehran last week, contributing to a ceasefire in Israel's attacks on Lebanon and a temporary opening of the Strait of Hormuz.

Pakistan has balanced relations with the US, China, and Gulf states, and previously facilitated secret talks between China and the US in 1971. Ali Sarwar Naqvi, a former Pakistani diplomat and head of the Centre for International Security Studies in Islamabad, said Pakistan holds the confidence of all UN Security Council permanent members and the trust of Iran.

Zamir Akram, a former Pakistani ambassador, noted that Pakistan's embassy in Washington has represented Iranian interests since 1979. These ties positioned Pakistan as an interlocutor after a June 2025 meeting between Munir and Trump at the White House.

“Pakistan has the confidence of all the permanent members of the [UN] security council. Pakistan aims to avoid entanglement in conflict and secure its energy supplies from the Gulf. The mediation effort also seeks to elevate Pakistan's global standing, leveraging its nuclear capability and 600,000-strong army to attract investment amid economic challenges, including power cuts and a $3 billion loan from Saudi Arabia. US Vice President JD Vance is set to lead the American delegation, according to reports. Iranian President Masoud Pezeshkian could potentially attend if a deal is reached, with Pakistani officials hopeful for a signing in Islamabad. However, Iran's foreign ministry stated there are no current plans for further talks, contradicting reports of a delegation's travel.”

Trump warned that without a deal by the deadline, the US may resume strikes on Iran. " Energy Secretary Chris Wright expressed optimism about a deal ending Iran's nuclear program and dismissed threats to the Strait of Hormuz. Trump rejected Wright's statement that gas prices may not fall below $3 before 2027, stating prices would drop below $3 once hostilities end.

Oil prices surged in response to the uncertainty, with Brent crude rising 6.77% to $96.5 a barrel and US crude futures up 8.05% to $90.56.

White, a former White House official and professor at Johns Hopkins University, said Pakistan has engaged the Trump administration sophisticatedly, taking advantage of personalized decision-making in Washington. Elizabeth Threlkeld, director for South Asia at the Stimson Center, noted Pakistan's rising stock in Washington due to its role in regional conflicts and defense deals.

Meanwhile, UK petrol and diesel prices fell after weeks of rises driven by the conflict, and investors sold bullish positions in Brent crude anticipating diplomacy. Conflicting media reports highlighted uncertainty, with some outlets stating talks are set for Tuesday while others noted no change in Iran's decision not to attend.

In Tehran, daily life continued amid the uncertainty, with coffee shops bustling as the ceasefire neared its end. Pakistan views success in mediation as a way to counterbalance its economic weaknesses and gain sway in a multipolar world. The effort builds on its participation in Trump's Board of Peace initiative and ties forged during last year's conflict with India.