JUST IN: US–Iran peace talks collapse as washington puts ‘Final Offer’ on table

Efforts to broker an end to the ongoing Middle East conflict suffered a major setback on Sunday after the United States and Iran failed to reach an agreement during marathon negotiations held in Islamabad.

US Vice President JD Vance confirmed that the talks ended without a breakthrough, despite what he described as Washington’s “final and best offer” presented to Tehran after extensive discussions lasting several hours.

Vance said the United States is demanding a clear and binding commitment from Iran that it will not pursue nuclear weapons development, stressing that such assurance was still lacking.

“We have presented our final proposal. The decision now rests with Iran,” he told journalists before departing Pakistan.

The Islamabad meeting, widely regarded as the highest-level engagement between both nations in decades, was facilitated by Pakistan, which urged continued dialogue and respect for a fragile ceasefire arrangement.

However, the talks reportedly ran into early friction, with Iranian officials accusing the US of making excessive demands, particularly on sensitive security and strategic issues. Tehran later noted that expectations of a quick deal were unrealistic given the duration of the war and longstanding mistrust.

The conflict escalated on February 28 following joint US and Israeli military action against Iran, triggering a wider regional confrontation that has disrupted energy markets and heightened global economic uncertainty.

A key sticking point in the negotiations remains the Strait of Hormuz, a vital global oil shipping route, where tensions have intensified amid military posturing and competing claims over access and control.

While Washington has increased its naval presence in the region to secure maritime movement, Iran has warned against any violation of its territorial waters, insisting it would respond to perceived aggression.

Despite the collapse of the talks, Pakistan said it would continue its mediation efforts, calling on both sides to maintain the ceasefire and return to dialogue in the coming days.

US President Donald Trump maintained a firm stance during the discussions, insisting that Washington’s military objectives had already been achieved regardless of diplomatic outcomes.

The breakdown highlights the deep mistrust between both countries, with Iran pushing for sanctions relief and broader concessions, while the US insists on stronger security guarantees and limits on Tehran’s nuclear ambitions.

As diplomacy stalls, concerns are also rising over parallel tensions in Lebanon, where ongoing military exchanges involving Israel and Hezbollah continue to fuel fears of a wider regional escalation.

With negotiations now in limbo, attention shifts to Tehran’s response to Washington’s proposal amid growing global anxiety over the prolonged conflict and its economic repercussions.

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