One of the biggest sticking points in the negotiations was the Strait of Hormuz, a crucial global oil chokepoint, with Iran insisting on maintaining control and rejecting US pressure to guarantee unrestricted access, the Iranian state broadcaster said.
At the same time, the US pushed for strict commitments from Iran to halt nuclear weapons development, a condition Tehran has refused to accept under the current terms.
The talks also touched on broader issues, including lifting sanctions, war reparations, and guarantees against future military action, but none of these saw convergence.
Earlier, US President JD Vance, who headed the US delegation in Islamabad, said that the talks failed because Iran "chose not to agree" to US terms. Calling it a "bad news for Iran," he said that the American side approached the talks with flexibility, but despite those efforts, no meaningful progress was achieved.
Outlining the next step, he said the US had placed a final proposal on the table. “We leave here with a very simple proposal—a method of understanding that is our final and best offer. We'll see if the Iranians accept it.”
The Islamabad talks marked one of the most intensive rounds of direct engagement between the two sides in recent times, involving senior officials and mediated by Pakistan.