Iran's foreign minister left Islamabad before US envoys arrived, prompting President Trump to cancel the delegation's trip and suggest future talks would happen by phone.

Envoys turned back as talks unravel

Iran's Foreign Minister Abbas Araghchi arrived in Islamabad on Friday as part of Pakistan-brokered efforts to revive direct negotiations with Washington. The White House had confirmed that envoys Steve Witkoff and Jared Kushner would travel to Pakistan on Saturday to, in its words, "move the ball forward towards a deal."

Araghchi departed before the US delegation landed. Trump then cancelled the trip and suggested the next round of contact would happen by telephone, posting: "If they want to talk, all they have to do is call!!!"

Araghchi had met Pakistani Prime Minister Shehbaz Sharif in Islamabad as part of the diplomatic outreach, but Tehran had not committed to a direct meeting with the US side.

Blockade and seizures fuel impasse

The diplomatic breakdown is playing out against a hardening maritime confrontation. Trump has said the US is keeping the Strait of Hormuz closed and that vessels will need permission from the US Navy to transit the waterway. The US Navy has intercepted 33 vessels since imposing its blockade on ships coming to and from Iran, according to Central Command.

Iran's Islamic Revolutionary Guard Corps has responded by seizing vessels of its own. The IRGC said its seizures were in response to what it described as the US capture of an Iranian commercial vessel. The International Chamber of Shipping has said both countries should immediately release the crews of captured vessels, calling the seizures a violation of international law.

Oil prices climbed above $106 per barrel as the deadlock persisted.

Sanctions and stranded cargo

The US Treasury sanctioned a Chinese "teapot" refinery, Hengli, for purchasing Iranian oil, saying the facility had generated hundreds of millions of dollars for Iran's military. Separately, with roughly 3,000 containers stranded in Pakistani ports due to the US blockade, Iran has been exploring overland transit routes to move sea cargo.

Ceasefire holds, blockade does not move

Trump extended the US-Iran ceasefire — the second such extension — after Pakistan's request, but made clear the naval blockade would remain in place until Iran presents a unified proposal. Iran has said it blames US "breach of commitments, blockade and threats" for stalling negotiations. Tehran has also stated it will keep the Strait of Hormuz closed until Washington lifts its blockade of Iranian ports.

Commercial flights resumed at Tehran's Imam Khomeini International Airport following weeks of disruption caused by the conflict — a sign that the ceasefire was holding even as the broader standoff showed no sign of resolution.