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US-Iran talks pause for now, disagreements remain

Published by Global Banking & Finance Review

Posted on April 11, 2026

5 min read

· Last updated: April 12, 2026

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US-Iran talks pause for now, disagreements remain
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By Ariba Shahid, Asif Shahzad and Parisa Hafezi ISLAMABAD, April 12 (Reuters) - Negotiations between the United States and Iran appeared to have concluded for now, Iran's government said early on

US military to block ships from Iranian ports after talks yield no agreement

US-Iran Tensions Escalate Over Strait of Hormuz Blockade

By Bo Erickson, Saad Sayeed and Asif Shahzad

MIAMI/ISLAMABAD, April 12 (Reuters) - President Donald Trump said on Sunday the U.S. Navy would start blockading the Strait of Hormuz, raising the stakes after marathon talks with Iran failed to reach a deal to end the war https://www.reuters.com/world/iran/, jeopardizing a fragile two-week ceasefire.

The U.S. Central Command said U.S. forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports at 10 a.m. ET (1400 GMT) on Monday.

It would be "enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman," a CENTCOM statement on X said.

U.S. forces would not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports, and additional information would be provided to commercial mariners through a formal notice prior to the start of the blockade, it said.

Trump said in a post on social media the U.S. would take action against every vessel in international waters that had paid a toll to Iran, and begin destroying mines that he said the Iranians had dropped in the Strait, a choke point for about 20% of global energy supplies that Iran has blocked.

    "No one who pays an illegal toll will have safe passage on the high seas," Trump wrote, adding: "Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

Iran's Response to US Blockade Threats

Iran's Revolutionary Guards responded to Trump by warning that military vessels approaching the Strait will be considered a ceasefire breach and dealt with harshly and decisively, underlining the risk of a dangerous escalation.

Iran's Parliamentary Speaker Mohammad Baqer Qalibaf, who led his country's delegation to the talks along with Foreign Minister Abbas Araqchi, said Trump's new threats would have no effect on Iran.

"If you fight, we will fight, and if you come forward with logic, we will deal with logic," he said in comments carried by state media.

Breakdown of US-Iran Talks

The weekend talks in Islamabad, which followed the announcement of a ceasefire on Tuesday, were the first direct U.S.-Iranian meeting in more than a decade and the highest-level discussions since the 1979 Islamic Revolution.

Iran's Perspective on Negotiations

IRAN BEMOANS 'MAXIMALISM, SHIFTING GOALPOSTS, AND BLOCKADE'

Araqchi said Iran had engaged in good faith but had "encountered maximalism, shifting goalposts, and blockade" when just inches away from an "Islamabad MoU."

"Zero lessons earned," he added. "Good will begets good will. Enmity begets enmity."

US Delegation's Assessment

Speaking after the talks, Vice President JD Vance, who headed the U.S. delegation, said: "The bad news is that we have not reached an agreement, and I think that's bad news for Iran much more than it's bad news for the United States of America."

Economic and Political Impact

Six weeks of fighting has killed thousands nL1N3ZZ07R, roiled the global economy nL1N40C0PY and sent oil prices soaring as Iran prevented traffic through the Strait. Oil prices jumped above $100 per barrel early on Monday.

Trump said on Sunday the price of oil and gasoline ​may remain high https://www.reuters.com/world/asia-pacific/trump-says-us-start-blockading-strait-hormuz-2026-04-12/ through November's midterm elections, a rare acknowledgement of the potential political fallout from the war.

A few hours after Trump's comments, Qalibaf took to social media to post a map of Washington-area gasoline prices and the comment: "Enjoy the current pump figures. With the so-called 'blockade', Soon you'll be nostalgic for $4–$5 gas."

The dollar jumped against other major currencies on Sunday L6N40V06C, as investors sought the relative safety of the currency after the talks failed to yield a deal, plunging markets into a seventh week of uncertainty.

Prospects for Further Negotiations

MORE NEGOTIATIONS?

In an interview with Fox News after his post about the Strait, Trump nevertheless said he believed Iran would continue to negotiate and called the discussions "very friendly."

"I do believe they're going to come to the table on this, because nobody can be so stupid as to say, ‘We want nuclear weapons,’ and they have no cards," Trump told Fox News from his golf course near Miami, Florida.

Trump also said NATO allies he has criticized for failing to back the war he launched along with Israel on February 28 wanted to help with the operation in the Strait.

There was no immediate comment from Washington's allies.

Key Sticking Points in the Talks

A U.S. official said Iran had rejected Washington's call for an end to all uranium enrichment, the dismantling of all major enrichment facilities and the transfer of highly enriched uranium. 

The two sides also failed to reach agreement on the U.S. demand that Iran cease funding for Hamas, Hezbollah and the Houthis as well as fully open the Strait, the official added.

Qalibaf blamed the U.S. for not winning Tehran's trust, despite his team offering "forward-looking initiatives." Iran's President Masoud Pezeshkian, who discussed the talks in a call with Russian President Vladimir Putin, said Tehran wanted "a balanced and fair agreement."

"If the United States returns to the framework of international law, reaching an agreement is not far off," he told Putin, Iranian state media reported.

Iran's semi-official Tasnim news agency said "excessive" U.S. demands had hindered reaching a deal. Other Iranian media said there was agreement on a number of issues, but the Strait and Iran's nuclear program were the main sticking points.

Current Status of Maritime Traffic

Despite the stalemate, three supertankers fully laden with oil passed through nL1N40U04R the Strait of Hormuz on Saturday, shipping data showed. They appeared to be the first vessels to exit the Gulf since the ceasefire deal.

(Reporting by Reuters bureaus worldwide, Writing by Idrees Ali, Lisa Shumake

Key Takeaways

  • Historic direct talks held in Islamabad under Pakistan’s mediation, first in over a decade, aiming to extend and stabilize a fragile two‑week ceasefire and reopen the vital Strait of Hormuz (en.wikipedia.org)
  • Disagreement persists: Iran claims the US agreed to unfreeze $6 billion in assets held in Qatar and other banks, which Washington has denied (al-monitor.com)
  • Security remains tense—US warships transited the Strait for the first time since the war began amid mine‑clearance plans, but Iran contests coordination; full control and reopening terms remain unsettled (axios.com)

References

Frequently Asked Questions

Why did the US-Iran talks pause?
The talks paused after 14 hours due to remaining disagreements, with both sides planning to continue technical exchanges.
What was the main focus of the US-Iran talks in Islamabad?
Key issues included a ceasefire, reopening the Strait of Hormuz, release of frozen assets, and regional stability.
How has the conflict affected global finance?
The conflict has caused global oil prices to soar and led to increased financial uncertainty.
What role did Pakistan play in the negotiations?
Pakistan acted as mediator, hosting the first direct US-Iran talks in over a decade with high security measures in Islamabad.
What demands did Iran make during the negotiations?
Iran demanded control of the Strait of Hormuz, war reparations, release of foreign assets, and a regional ceasefire.

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