US Negotiators to Go to Islamabad, but Iran Says No Direct Talks

The diplomatic push to end the Iran-U.S. conflict is accelerating, but the path to an agreement remains fraught with contradictions.

White House envoys Steve Witkoff and Jared Kushner are scheduled to depart for Islamabad on Saturday for a new round of talks aimed at ending the nine-week conflict that has disrupted global energy markets and killed thousands. Iran's foreign minister, Abbas Araqchi, is already in the Pakistani capital, but Tehran says its officials won't meet directly with the Americans — preferring to relay concerns through Pakistan as mediator.

The gap between the two sides is enormous. Defense Secretary Pete Hegseth reiterated that Iran must abandon its nuclear weapons program in "meaningful and verifiable ways." Iran, meanwhile, insists on a ceasefire in Lebanon as a precondition for substantive negotiations. Israel and Lebanon extended their ceasefire for three weeks on Thursday, but fighting in southern Lebanon continues, with both sides reporting casualties.

The economic stakes are escalating rapidly. Iran has largely closed the Strait of Hormuz, through which roughly one-fifth of global oil shipments normally pass. Shipping data shows only five vessels crossed the strait in the past 24 hours, compared to roughly 130 per day before the conflict. Brent crude futures surged 16% this week alone, stoking inflation fears worldwide.

Turkey signaled it may participate in demining operations in the Strait of Hormuz following any peace deal, with Foreign Minister Hakan Fidan calling it a "humanitarian duty." But he cautioned that Turkey would withdraw from any technical coalition that became a party to renewed hostilities.

President Trump told Reuters that Iran plans to make an offer addressing U.S. demands, though he declined to specify what that offer entails. The White House says it has seen "some progress" from Iran in recent days and hopes for more this weekend. Vice President JD Vance is also prepared to travel to Pakistan if needed.

What This Means For You: Energy prices are directly tied to the Hormuz standoff. If you're budgeting for gas, heating, or transportation costs, plan for continued volatility. A breakthrough in Islamabad could send oil prices plummeting — but a breakdown could push them even higher. Anyone with exposure to fuel-dependent industries or international supply chains should be monitoring weekend developments closely.