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April 15 (UPI) — U.S. President Donald Trump said peace talks with Iran “could be happening in the next two days,” with American negotiators most likely to return to Islamabad where the first round of talks at the weekend ended without a breakthrough.

In an interview with the New York Post on Tuesday, Trump said talks between the sides were “happening, but, you know, a little bit slow,” saying a new round of direct negotiations would probably be hosted by a country in Europe.

However, around 30 minutes after the interview had concluded, Trump called back to tell the Post that it should keep its reporter covering the talks in Islamabad in place and not bring them home.

“You should stay there, really, because something could be happening over the next two days, and we’re more inclined to go there [Islamabad]. It’s more likely, you know why? Because the field marshal is doing a great job,” Trump said, referencing Pakistan’s Field Marshal Gen. Asim Munir who has a direct line of communication with the regime in Tehran and a strong relationship with Trump.

“He’s fantastic, and therefore it’s more likely that we go back there. Why should we go to some country that has nothing to do with it?” added Trump.

The Washington D.C.,-headquartered Institute for the Study of War also said a fresh round of negotiations was likely this week but said it believed Iran’s approach would be to try to buy time by spinning out the talks

“Iran likely aims to protract negotiations as long as possible in order to prepare for a potential resumption of conflict,” ISW said in a post on X.

The developments, which came as a fragile cease-fire that took effect April 7 entered its second week, followed earlier reports in which unnamed White House officials told CNBC, CNN and NBC News that in-person negotiations could restart before the truce expires on Tuesday.

Vice President JD Vance said round one of the talks in Islamabad, which ran for more than 20 hours, foundered on differences over Iran’s nuclear program — which the United States wants it to give up completely to ensure it can never develop a nuclear weapon — and control of the Strait of Hormuz.

Reports later emerged that more progress had been made than initially suggested, with the sides getting close to agreement on nuclear enrichment after Iran countered U.S. demands for a 20-year suspension with an offer to halt all enrichment for 5 years.

Trump told the Post he was unhappy with the thinking that a moratorium on enrichment, instead of terminating the program, would make the regime in Tehran more amenable to a lasting peace agreement by providing them a face-saving “success” to sell to the Iranian people.

“I’ve been saying they can’t have nuclear weapons. So I don’t like the 20 years. I don’t want them [Iran] to feel like they have a win.”

Experts concurred with Trump’s analysis, saying the only way to guarantee Iran would not be able to pursue a nuclear weapon in the future was to make sure the entire program was put beyond use, in a verifiable way, and that it needed to happen while Trump was still in office.

Under the Joint Comprehensive Plan of Action, a 2025 deal between Iran and the United States, Britain, France, Germany, Russia and China, enrichment by Tehran of its 300 Kg stockpile of uranium was capped at 3.67%, in exchange for sanctions relief.

However, that deal lapsed in October, although in practice it was long dead after Trump pulled the United States out of the agreement in May 2018, during his first term, with Iran subsequently proceeding to enrich an expanded 441 kg uranium stockpile to around 60%, not far short of weapons grade.

European stocks were mostly steady on Wednesday as investors weighed signals from Washington that a diplomatic breakthrough in the Iran war could be imminent.

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The pan-European Stoxx 600 had ticked down 0.1%, Germany’s Dax edged 0.11% higher and the FTSE 100 climbed 0.11%. The CAC 40 in France fell by a slightly greater margin, at 0.65%.

US President Donald Trump said fresh talks between Washington and Tehran “could be happening over the next two days” in Islamabad, signalling a possible diplomatic breakthrough, and added that the war was “very close to over” — despite continued uncertainty over key sticking points in negotiations.

Asian markets were broadly higher.

Japan’s Nikkei 225 gained 0.5%, South Korea’s Kospi jumped 3.0% and Hong Kong’s Hang Seng edged up 0.7%.

The Shanghai Composite added 0.2%, while Australia’s S&P/ASX 200 was little changed, up less than 0.1%.

On Wall Street, the S&P 500 added 1.2% to its gains from the previous day, and the index at the heart of many 401(k) accounts is now just 0.2% below its record set in January.

The Dow Jones Industrial Average rose 317 points, or 0.7%, while the Nasdaq Composite climbed 2%.

On Wednesday, benchmark US crude inched up by 1 cent to $91.29 a barrel.

Brent crude added 48 cents to $95.27, or less than 1%, after falling 4.6% the previous day. While that is still above its roughly $70 level from before the war began in late February, it remains well below the peak of $119.

Lower oil prices help reduce costs for businesses across the economy. However, some analysts noted that the war is still ongoing, warning that the optimism may prove unfounded.

“The counterintuitive decline in crude appears driven by growing hopes that a second round of peace talks between Washington and Tehran could soon materialise, after the first attempt fizzled out,” said Tim Waterer, chief market analyst at KCM Trade.

“Traders are clearly choosing to price in the possibility of de-escalation rather than the immediate reality of restricted flows,” he added.

Asian nations depend on access to the Strait of Hormuz, a narrow waterway that is the main route for crude oil produced in the Persian Gulf to reach customers worldwide. Disruptions there have kept oil off the global market, driving up prices.

Global inflation this year is expected to accelerate to 4.4% from 4.1% in 2025, according to the International Monetary Fund, which had previously forecast a slowdown to 3.8%.

The IMF also downgraded its forecast for global economic growth to 3.1% this year, from 3.3% projected in January.

Overall, the S&P 500 rose 81.14 points to 6,967.38. The Dow Jones Industrial Average gained 317.74 points to 48,535.99, while the Nasdaq Composite climbed 455.35 points to 23,639.08.

In the bond market, Treasury yields eased as falling oil prices reduced inflationary pressure. The yield on the 10-year Treasury fell to 4.25% from 4.30% late Monday.

In currency trading, the US dollar edged up to 159.03 Japanese yen from 158.79 yen. The euro stood at $1.1780, down from $1.1797.

US stocks climbed to the brink of a record high on Tuesday, while oil prices eased as hopes grew that Washington and Tehran may resume talks to end their war.

The S&P 500 rose 1.2%, leaving it just 0.2% below its January peak. The Dow Jones Industrial Average gained 0.7%, while the Nasdaq Composite jumped 2%, tracking broader global market gains.

Investors are betting that renewed diplomacy could prevent a prolonged surge in oil prices and inflation, allowing focus to return to corporate earnings.

Brent crude for June delivery fell 4.6% to $94.79, down from recent highs, though still above pre-war levels.

However, volatility remains high, with markets sensitive to developments around the Strait of Hormuz, a key route for global oil supply.

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