talks

Donald Trump has indicated that the conflict with Iran could conclude “soon,” citing progress in negotiations and a possible meeting between the two sides in the coming days. A temporary ceasefire between Israel and Lebanon has added to cautious optimism, though the broader regional situation remains unstable. The war, which began with U.S.-Israeli military action, has had sweeping geopolitical and economic consequences.

Ceasefire in Lebanon:
A 10-day truce between Israel and Lebanon has come into effect, offering a brief pause in cross-border hostilities. However, early reports of violations underline the fragility of the arrangement. Hezbollah, aligned with Iran, has been urged by Washington to maintain restraint during this critical window.

Diplomatic Breakthrough Efforts:
Backchannel diplomacy, with Pakistan playing a mediating role, has reportedly led to progress on key issues. Talks are expected to produce an initial memorandum of understanding, potentially followed by a comprehensive agreement within weeks. Engagement between U.S. and Iranian officials is likely to intensify in the immediate term.

Global Economic Shock:
The conflict has disrupted global energy flows, particularly through the Strait of Hormuz, through which a significant share of the world’s oil supply passes. This has triggered sharp oil price fluctuations and raised concerns about a broader economic slowdown, even as markets show signs of stabilizing on hopes of a resolution.

Nuclear Issue as Core Dispute:
Iran’s nuclear program remains the central obstacle in negotiations. Washington is pushing for long-term restrictions, while Tehran seeks shorter commitments and the lifting of sanctions. Bridging this gap will be critical to securing a durable settlement.

Political Pressures and Regional Stakes:
The war has created domestic political challenges for Trump, particularly ahead of upcoming elections. At the same time, regional actors are closely watching the outcome, as any agreement will shape the balance of power and security dynamics across the Middle East.

Analysis:
Momentum toward a deal is clearly building, but the situation remains precarious. The ceasefire in Lebanon and progress in diplomacy suggest a window of opportunity, yet unresolved issues, especially around nuclear limits and sanctions relief, could still derail negotiations. Trump’s urgency reflects both strategic calculation and domestic political pressure, while Iran appears willing to engage but not at any cost. If a preliminary agreement is reached, it would mark a significant de-escalation, but sustaining peace will require careful management of deep-rooted tensions and competing interests on all sides.

With information from Reuters.

Islamabad, Pakistan – Pakistan’s Foreign Ministry on Thursday confirmed that the United States and Iran were in discussions – through Islamabad – to hold a second meeting between their negotiators to end their now nearly seven-week war, with a fragile ceasefire announced on April 8 days away from expiring.

But it added that no date had been set for that next round of negotiations, even as Islamabad stepped up a parallel diplomatic push to keep the process alive.

“Who will come, how big the delegation will be, who will stay, and who will go is for the parties to decide,” Foreign Ministry spokesperson Tahir Andrabi told reporters in Islamabad, referring to what upcoming talks might look like. “As a mediator, it’s important for us to keep the talks confidential. We had the details and information of the talks entrusted to us by the negotiating parties.” 

Speaking of the first round of talks on April 12 in Islamabad, which concluded without a deal, Andrabi said: “There was neither a breakthrough nor a breakdown.”

The spokesperson confirmed that nuclear issues remained among the key subjects under discussion, but declined to elaborate.

His comments came as Pakistan’s civil and military leadership is travelling across the region in what some observers have begun calling the “Islamabad Process”, reflecting the government’s attempt to frame negotiations as an ongoing diplomatic effort rather than a one-off engagement.

Parallel diplomatic tracks

Pakistan’s Prime Minister Shehbaz Sharif arrived in Doha on Thursday, the second stop of a four-day regional tour that began with Jeddah on Wednesday, and will see him visiting Antalya next.

Meanwhile, Pakistan’s Chief of Defence Forces (CDF) Asim Munir arrived in Tehran on Wednesday with a delegation that included Interior Minister Mohsin Naqvi.

Munir was received at the airport with a warm hug from Iranian Foreign Minister Abbas Araghchi, who said he was “delighted” to welcome the field marshal and expressed gratitude for Pakistan’s “gracious hosting of dialogue”.

On Thursday, Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf, who led Tehran’s delegation at the Islamabad talks, also met Munir.

Reza Amiri Moghadam, Iran’s ambassador to Pakistan, said at an event in Islamabad that Tehran would not consider any venue other than Pakistan for talks with Washington.

“We will do talks in Pakistan and nowhere else, because we trust Pakistan,” he said.

Muhammad Faisal, a Pakistani security analyst and scholar at the University of Technology Sydney, said the parallel outreach reflected a deliberate division of labour.

“Pakistan’s strategy appears to be dual-tracked: PM Sharif is reassuring Gulf allies and attempting to build a broader support coalition, while CDF Munir is engaged in hard negotiations between the two sides to narrow gaps between Iran and the US, with an eye on extending the ceasefire and reaching a broader understanding,” he told Al Jazeera.

Reports that Munir might travel to Washington, DC after Tehran were denied by security officials, who called them “speculative”. Andrabi said he was not aware of any such development.

In Jeddah on Wednesday, Sharif met Saudi Crown Prince Mohammed bin Salman and expressed “full solidarity and support” for the kingdom following regional escalation, according to Pakistan’s Foreign Ministry. The crown prince praised what Riyadh described as the “constructive role” played by both Sharif and Munir.

In Doha, Sharif met Qatar’s Emir Sheikh Tamim bin Hamad Al Thani and discussed “the regional situation, particularly in the Gulf region”, underscoring “the importance of de-escalation, dialogue and close international coordination to ensure peace and stability”, the prime minister’s office said.

From Doha, Sharif heads to Antalya with Deputy Prime Minister and Foreign Minister Ishaq Dar. They are expected to meet counterparts from Saudi Arabia, Turkiye and potentially Egypt on the sidelines of the Antalya Diplomacy Forum on April 17.

Regional security push

The Antalya meeting is part of a broader diplomatic effort. Turkiye is preparing to host talks on a regional security platform involving Pakistan, Saudi Arabia and possibly Egypt, according to officials familiar with the discussions.

It would be the third such meeting in a month, following earlier rounds of talks in Riyadh and Islamabad.

The goal is to establish a platform for regular, structured cooperation on regional security issues, the officials said, stressing the discussions are distinct from current efforts to end the Iran war.

Turkish Foreign Minister Hakan Fidan confirmed that discussions were under way, but said no agreement had been finalised.

“This pact is necessary so that countries can be assured of one another,” he told the state-run Anadolu Agency on Monday.

Turkiye also reaffirmed support for the US-Iran peace process on Thursday.

“We will continue to provide the necessary support for the ongoing ceasefire to turn into a permanent truce and eventually lasting peace, without becoming more complex and difficult to manage,” the Defence Ministry said, adding that it expected “the parties will be constructive in the ongoing negotiation process”.

Pakistan’s Foreign Ministry said senior officials from the four countries had also met in Islamabad earlier this week to prepare recommendations for Antalya.

Ceasefire under strain

The two-week ceasefire brokered by Pakistan on April 8, which halted attacks in Iran and the Gulf, is due to expire on April 22. While still holding, it is under increasing strain.

A US naval blockade on Iranian ports remains in place, with the US Central Command saying its forces had turned away nine ships as of Wednesday.

Kamran Yousuf, an Islamabad-based journalist and expert on diplomatic affairs, said he expected the ceasefire to be extended.

“I would be really surprised if the current ceasefire is not extended. There is little appetite on both sides to go back to war. There are enough signs on the ground that if there is no deal before the truce expires, the ceasefire will be extended,” he told Al Jazeera.

Faisal offered a more cautious assessment, warning that failure to secure a second round would shift Pakistan’s role.

“Pakistan’s mediation will not collapse immediately, but Islamabad’s role will change from mediator to crisis manager. If hostilities resume, Pakistan will focus again on brokering a ceasefire,” he said.

Despite uncertainty, signals from both Washington and Tehran have remained cautiously optimistic.

White House press secretary Karoline Leavitt said further talks would “very likely” take place in Islamabad, adding, “We feel good about the prospects of a deal.”

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said multiple messages had been exchanged with Washington through Pakistan since April 12.

US President Donald Trump said on Tuesday that talks could resume within two days and that Washington was “more inclined to go” to Pakistan.

Sticking points remain

The path to a second round remains complicated by unresolved disputes.

Iran has insisted that Lebanon be included in any agreement, arguing that ongoing Israeli strikes there, which have killed more than 2,000 people and displaced 1.2 million, cannot be separated from the wider conflict.

On April 14, the United States convened a trilateral meeting in Washington with the ambassadors of Israel and Lebanon, the first direct engagement between the two sides since 1993.

US Secretary of State Marco Rubio mediated the talks, which both sides described as “productive”, but no ceasefire or follow-up meeting was agreed.

Washington has maintained that any Lebanon deal must remain separate from US-Iran negotiations, rejecting Tehran’s position. On Thursday, Israel said its Prime Minister Benjamin Netanyahu would speak on the phone with Lebanese President Joseph Aoun — but Beirut had not confirmed any plans for a telephone conversation. The two countries do not have formal diplomatic relations.

At Thursday’s briefing, Andrabi aligned Pakistan with Iran on this issue.

“Peace in Lebanon is essential for US-Iran peace talks,” he said, adding that “signs of improvement on the Israel-Lebanon front over the past two days are encouraging.”

Yousuf said a Lebanon ceasefire would send an important signal to Iran.

“Extending the ceasefire to Lebanon will be an important confidence-building measure, a signal from the US that it is serious about a second round. It will also give Tehran good reason to return to the table,” he said.

But he added that the deeper challenge remained Iran’s nuclear programme.

“The nuclear issue is at the heart of the real problem. The flurry of shuttle diplomacy initiated by Pakistan is aimed at bridging the gap between the two sides,” he said.

Grace Wermenbol, a former US national security official and senior visiting fellow at the German Marshall Fund, said Washington’s approach to Lebanon would hinge on Trump’s willingness to pressure Israel.

“A clear pathway to a cessation of hostilities in Lebanon exists,” she told Al Jazeera. “The question is whether Trump will be willing to apply the pressure necessary on Israel to halt its military offensive and allow the Lebanese government to continue its military disarmament efforts. So far, and this is also true for the months preceding the latest escalation between Israel and Hezbollah, we have not seen this pressure materialise.”

The Strait of Hormuz remains another major obstacle.

The waterway, through which roughly a fifth of the world’s oil passes during peacetime, has effectively been blocked by Iran since early in the war, except for ships belonging to countries that have struck individual deals with Tehran.

Starting Monday, the US imposed its own naval blockade on the strait, to prevent any Iran-linked vessel from passing through.

“Iran’s effective closure of the Strait of Hormuz has emerged as the primary issue in US-Iranian negotiations. Opening it is crucial to easing upward pressure on oil prices and instilling confidence in global markets,” Wermenbol said.

She added that Tehran appeared to be betting Washington would eventually back down.

“There is no easy military option here,” she said. “The only way to resolve this issue and remove the threat to maritime traffic will need to involve a diplomatic deal.”

Pakistani officials are expecting a “major breakthrough” in talks between Iran and the United States on Tehran’s nuclear programme, sources have told Al Jazeera, as Islamabad steps up diplomatic efforts to end a war that has killed thousands of people.

The optimism on Wednesday came as a high-level Pakistani delegation, headed by Army Chief Asim Munir, arrived in Tehran to deliver a message from the US to the Iranian leadership, according to Iran’s Press TV broadcaster.

He was received by Iran’s Foreign Minister Abbas Araghchi, who expressed gratitude for Pakistan’s “gracious hosting of dialogue”. According to Press TV, Munir is also seeking to lay the groundwork for a second round of talks between the US and Iran.

Al Jazeera’s Osama Bin Javaid, who has been covering the US-Iran talks, said Pakistani officials were expecting “a major breakthrough on the nuclear front” and that the delegates were continuing to relay messages back and forth between Washington and Tehran.

The central sticking point remains the duration of any enrichment freeze by Iran and the country’s stockpile of 440 kilogrammes of highly enriched uranium.

“We know that both sides are essentially stuck on between five years of no enrichment to 20 years of no enrichment. And there is a solution in the middle,” Bin Javaid said.

“There’s also talk about what Iran will do with the 440kg of nuclear-enriched material that it has in the country. There are multiple options – whether sending it abroad to a third party or bringing it down to either uranium in its natural form or up to 3 percent,” he said.

“According to these sources, there’s major headway that has been made, and they’re expecting that the Pakistanis are going to be able to convince Tehran,” he added.

Shuttle diplomacy

The shuttle diplomacy by Pakistan came after talks between the US and Iran in Islamabad ended over the weekend without an agreement to end the war. Mediators are pressing for a compromise on three main issues: Iran’s nuclear programme, control of the Strait of Hormuz – which Tehran has effectively closed, causing a surge in global oil prices – and compensation for wartime damages.

The conflict, launched by the US and Israel on February 28, has killed more than 3,000 people in Iran and triggered retaliatory attacks by Tehran on Gulf countries. It has also reignited a conflict between Israel and Hezbollah in Lebanon, where Israeli forces have killed more than 2,000 people since March 2.

A ceasefire between Tehran and Washington on April 8 has halted attacks in Iran and the Gulf, but strikes by Israeli forces on Lebanon have continued.

Separately on Wednesday, Pakistan’s Prime Minister Shehbaz Sharif also travelled to Saudi Arabia as part of a regional tour that also includes stops in Qatar and Turkiye. Al Jazeera’s Bin Javaid said Sharif’s tour was part of a “double-pronged strategy”.

“While the Iranians are speaking to the Pakistani military chief, the Pakistani prime minister and foreign minister are talking to the Saudis and the Qataris. The day after, they go to Turkiye,” he said, with the aim of neutralising any detractors to a deal

Bin Javaid said the detractors include elements in Tehran, in Washington, DC, and most of all, Israel, “which does not want a peace deal and wants a perpetual war in the region”.

‘Very close to over’

The diplomatic push appears bolstered by optimistic comments from US President Donald Trump, who said late on Tuesday that the world should brace for an “amazing two days” and the war on Iran is “very close to over”.

White House Press Secretary Karoline Leavitt later said that further negotiations would likely be held in Islamabad, calling Pakistan-mediated discussions “productive and ongoing”.

“We feel good about the prospects of a deal,” she said on Wednesday.

In Tehran, Iran’s Ministry of Foreign Affairs confirmed that exchanges with the US have continued since the end of the talks in Islamabad. Spokesman Esmaeil Baghaei said “several messages have been exchanged through Pakistan” and that Iranian “positions have been expressed in those exchanges”.

Tensions remain, however.

A US Navy blockade on Iranian ports – which began following the end of the talks – remains in effect in the Strait of Hormuz. The US Central Command claimed it has turned back nine vessels as of Wednesday.

Iran’s military has denounced the blockade as a violation of the April 8 ceasefire. Iran’s Fars News Agency separately reported that a sanctioned Iranian supertanker had crossed the Strait of Hormuz despite the blockade, though it gave no further details.

Ali Abdollahi, the commander of Iran’s joint military command, has also threatened to halt trade in the region if the US does not lift its blockade. He warned that Iran would retaliate by blocking trade through the Red Sea, along with the Gulf and the Sea of Oman.

WASHINGTON — With a fragile ceasefire set to expire with Iran in a matter of days, President Trump is still deciding between diplomacy and a resumption of fighting that may ultimately hinge on his definition of victory.

Negotiations have continued over the last week between the warring sides over a potential agreement that would end the conflict and curtail Iran’s nuclear ambitions, with interlocutors from Pakistan passing messages that have kept talks alive. Tehran has floated an extension of the two-week ceasefire, set to expire Tuesday, that is under active consideration by the American side.

But the Islamic Republic has simultaneously vowed retaliation over a new U.S. blockade of Iranian ports that in effect cut off Tehran’s oil sales, which make up nearly 85% of the country’s export revenue. And the Trump administration is deploying up to 10,000 additional troops to the region, on top of the 50,000 already there, both reinforcing the blockade and threatening ground operations if diplomacy fails.

Conflicting messages from the Trump administration are designed to escalate pressure on Tehran ahead of the ceasefire deadline, potentially extracting concessions at the negotiating table.

But speaking with reporters, Trump has made it clear he is seeking a way to end the war for good.

“I think it’s close to over,” Trump told Fox Business Network’s “Mornings with Maria” on Wednesday. “I view it as very close to over. If I pulled up stakes right now, it would take them 20 years to rebuild that country. And we’re not finished. We’ll see what happens. I think they want to make a deal very badly.”

Negotiations toward that end have proved more challenging than the administration initially anticipated.

Trump has said he started the war in order to eliminate Iran’s nuclear infrastructure, degrade its ballistic missile and drone programs, and destroy its navy. But in talks, the Iranians have not relented on their right to enrich uranium, to maintain conventional defensive capabilities and to police traffic through the Strait of Hormuz, one of the world’s most vital waterways.

Tehran rejected a proposal by U.S. negotiators last week for a 20-year pause on Iran’s domestic enrichment of fissile material, with the Iranians countering with a five-year moratorium, one official said.

In his interview with Fox, Trump said the talks were going so well that an extension of the ceasefire might not be necessary. Yet, speaking with the New York Post, Trump suggested he wouldn’t settle for less than an indefinite cap on Iran’s nuclear work.

“I’ve been saying they can’t have nuclear weapons,” Trump said, “so I don’t like the 20 years.”

“I don’t want them to feel like they have a win,” he added.

The U.S. ceasefire with Iran was predicated on the resumption of free navigation through the Strait of Hormuz. But Iranian threats of a new toll system and warnings of drifting mines have limited traffic, prompting the Trump administration to announce a full blockade of the strait. Despite the U.S. threat, ships have continued transiting the passage this week, suggesting the U.S. blockade has focused more specifically on Iranian ports.

Amid the impasse, global oil prices remain stubbornly high — a concern for Republicans entering this year’s midterm election season. Trump told Fox that he expected prices to drop to prewar levels by the time of the vote in November.

“There’s gonna be a hit, but it’s going to recover, I think, fully,” Trump said. “I think that we will be somewhere around where we were — maybe even lower. And when this is over, I think the stock market is going to boom.”

A second round of high-level negotiations could take place in Islamabad, Pakistan, over the next several days, Karoline Leavitt, the White House press secretary, told reporters at a news briefing Wednesday.

Pakistani officials traveled to Tehran on Wednesday to deliver a message from the U.S. delegation, potentially laying the groundwork for new, in-person talks.

“He’s made his red lines in these negotiations very clear to the other side,” Leavitt said. “We feel good about the prospects of a deal.”

Pakistan’s army chief, Asim Munir, has arrived in Iran for high-level talks aimed at reviving negotiations between Tehran and the United States. The visit comes as Iran warns it could halt trade across key waterways if a US naval blockade on its ports continues.

Sources tell Al Jazeera that Pakistani mediators are hopeful about a breakthrough on Iran’s nuclear programme.

A high-level Pakistani delegation has travelled to Iran to hold talks focused on arranging a fresh round of negotiations between Iran and the United States, a week before their fragile truce is due to expire.

Pakistan Army Chief Asim Munir is heading the delegation that arrived in Tehran on Wednesday evening, according to Iranian state media. It said he came with a new message from the US and plans to coordinate a second round of US-Iran talks, after an initial round in Islamabad ended on Sunday without a deal to end the war.

Pakistan’s Interior Minister Mohsin Naqvi is also joining mediation efforts in Tehran, while Pakistan’s Prime Minister Shehbaz Sharif is in Saudi Arabia for the first stop in a four-day Gulf tour.

Pakistan’s diplomatic blitz comes as competing US and Iranian sea blockades strain tensions – and the global economy – but amid indications of progress towards a deal to end the war, which has killed 3,000 people in Iran and spiralled across the Middle East.

“The urgency is being driven by the ceasefire expiring on April 22, and Pakistani officials are hoping they can get that extended,” said Al Jazeera’s Kimberly Halkett from Islamabad. “Sharif will try and convince regional partners to also use their leverage to convince the US to participate in new talks with Iran and make sure there is no diplomatic line-crossing.”

Washington ‘feels good’ about potential deal

The latest mediation appears bolstered by optimistic comments from US President Donald Trump, who said the world should brace for an “amazing two days” as the war with Iran is close to over.

Trump also said his negotiators were likely to return to Pakistan, thanks largely to the “great job” Munir was doing to moderate the talks.

White House press secretary Karoline Leavitt later reiterated that additional talks with Iran would likely go forward in Islamabad. “We feel good about the prospects of a deal,” she told reporters on Wednesday.

Nevertheless, the US military said its naval blockade on all Iranian ports was still in effect, with US forces “present, vigilant and ready to ensure compliance”.

The blockade, which Iran’s military slammed as a violation of the ceasefire, turned nine ships away as of Wednesday, according to US Central Command.

The commander of Iran’s joint military command, Ali Abdollahi, threatened to halt trade in the region if the US did not lift its blockade. He also warned Iran would retaliate by blocking trade through the Red Sea along with the Gulf and Sea of Oman.

‘Detractors on all sides’

Mediators in the conflict are pushing for a compromise on three main sticking points – Iran’s nuclear programme, control of the Strait of Hormuz, and compensation for wartime damages.

Iran’s Foreign Minister spokesman Esmaeil Baghaei has said Iran is open to discussing the type and level of its uranium enrichment, but his country “based on its needs, must be able to continue enrichment”, according to Iranian state media.

Sources told Al Jazeera that Pakistani mediators are optimistic about a potential major breakthrough on the nuclear front, which is the reason for Munir’s rare diplomatic trip.

“It looks like there is some agreement in the making, but we’ve been cautioned by sources [close to the mediation effort] that there are detractors on all sides,” said Al Jazeera’s Osama Bin Javaid from Doha.

He said the detractors include elements “in Tehran, in Washington, DC, and biggest of them all, according to Pakistani sources, is Israel, which does not want a peace deal and wants a perpetual war in the region”.

U.S. and Iranian negotiators made significant progress in talks on Tuesday, moving closer to a framework agreement to end the war, according to a report by Axios citing two U.S. officials.

Mediators from Pakistan, Egypt, and Turkey are working urgently to bridge

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.

After the first direct talks in decades, Israel and Lebanon have agreed to begin ongoing negotiations for the ‘security of both countries’. Al Jazeera’s Mike Hanna explains why US Secretary of State Marco Rubio sees this ‘milestone’ meeting as just the ‘start of the process’.