US-Iran Peace Talks: JD Vance-led US delegation arrives in Islamabad; MB Qalibaf, A Araghchi lead Team Iran

US Vice President JD Vance arrived in Islamabad on Saturday for discussions with a delegation from Iran over the Middle East conflict. The development comes at a time when both the US and Iran have agreed to a temporary ceasefire after five weeks of escalations that began with joint US-Israel strikes against Tehran that killed Iran's supreme leader. One of the main talking points is the reopening of the Strait of Hormuz, which has remained effectively blocked during this period -- impacting the energy supplies and prices across the globe.

Delegations from the US and Iran are expected to meet at 1 pm local time (1:30 pm in India), according to sources.

Many experts view this as the most challenging assignment of Vance's vice-presidency so far.

Add Zee Business as a Preferred Source

All eyes on US-Iran peace talks in Pakistan as both sides arrive in Islamabad

Vance is set to spearhead the American delegation, which includes President Donald Trump’s special envoy, Steve Witkoff, according to foreign media reports.

Iranian Parliament Speaker Mohammad Bagher Qalibaf, who reportedly arrived in Islamabad before the American delegation, and Foreign Minister Abbas Araghchi will be representing Iran in the discussions. Tehran has a 14-member delegation in the Pakistani capital.

According to sources, both sides are likely to engage in discussions on a permanent ceasefire, Iran's nuclear programme and regional security.

Before setting out for Pakistan, Vance warned Iran not to “play” with the US. Hours after that, Qalibaf said on social media that Iran will only engage in talks only on one condition: an Israeli ceasefire in Lebanon and the release of blocked Iranian assets. Even after the US-Iran ceasefire, escalations were reported between Israeli forces and Hezbollah along the border of southern Lebanon.

Trump wished Vance good luck, saying: “We’ll find out what’s going on. They’re militarily defeated."

“The Iranians don’t seem to realise they have no cards, other than a short term extortion of the World by using International Waterways,” Trump posted on social media on Friday. “The only reason they are alive today is to negotiate!”

Pakistani authorities have reportedly urged residents to stay inside. Pakistan PM Shehbaz Sharif said Friday that the conflict was entering a “difficult phase”, describing it as a “make-or-break” moment for both sides.

Before departing for Washington on Friday, Vance expressed hope that talks with the Iranian side will be “positive". “If they’re going to try and play us, then they’re going to find that the negotiating team is not that receptive," he reportedly said.

Ghalibaf reportedly said his negotiators have "good intentions" but "do not trust" the US.

Israel-Lebanon peace talks begin soon

Israel and Lebanon are set to engage in direct negotiations in the US capital on Tuesday, according to Lebanese President Joseph Aoun’s office. Beirut has shown intent to hold direct discussions with the Israeli side to end the war, but under a ceasefire similar to the one with Iran.

Israel reportedly wants the Lebanese government to assume responsibility for disarming Hezbollah. Tel Aviv sought a similar arrangement in a November 2024 ceasefire too.

Strait of Hormuz remains effectively block; why makes it crucial in US-Iran talks

The maritime region, connecting the Persian Gulf with the Gulf of Oman and then the Arabian Sea, normally enables the supplies of about one-fifths of the world's oil and gas consignments. The waterway remains a sticking point in the conflict as its closure has sent ripples across oil markets, including a nearly four-year high in Brent in mid-March.

Although easing of tensions has brought Brent to $95 a barrel-odd levels, analysts say that a prolonged blockage of the region could dent global growth. Iran’s control over the strait has proved its biggest strategic advantage in the conflict.

Meanwhile, global economic watchdog IMF has warned of weaker and uneven world economic growth a large, global and asymmetric supply shock to countries due to the Middle East conflict.

Its MD Kristalina Georgieva has warned that the world economy is entering a more fragile phase, with growth prospects now tilting downward even under the most optimistic assumptions.