On Tuesday, Pakistani officials announced that Islamabad has suggested a second round of discussions involving the U.S. and Iran. This comes as U.S. Vice President JD Vance acknowledged that recent negotiations with Iran have made “some progress.” Meanwhile, U.S. President Donald Trump noted on Monday that the other party has reached out and expressed a desire to negotiate a deal.

The Pakistani representatives, wishing to remain unnamed due to restrictions on speaking to the media, provided this information.

On the other hand, a high-ranking Hezbollah official declared on Monday that the Lebanese militant faction would not comply with any outcomes from the upcoming direct talks between Lebanon and Israel, which are scheduled to commence Tuesday in Washington.

Lebanese authorities are aiming for a ceasefire in the conflict with Israel, which has claimed at least 2,089 lives in Lebanon. Israeli Prime Minister Benjamin Netanyahu, however, has expressed that he is not in favor of a ceasefire, focusing instead on disarming Hezbollah and possibly reaching a peace agreement with Lebanon.

The situation intensified with the U.S. initiating a blockade of Iranian ports on Monday, while Iran has vowed retaliation. This standoff heightens global economic risks and threatens to unravel any ceasefire efforts, potentially reigniting hostilities.

Here’s the latest update:

Xi floats proposal to promote Middle East peace

Chinese President Xi Jinping floated a four-point proposal for promoting Middle East peace during a meeting Tuesday with Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the crown ⁠prince of Abu Dhabi, Chinese official news agency Xinhua reported.

Xi’s proposal calls for upholding the principle of regional peaceful coexistence and respecting national sovereignty while underscoring the principles of coordinating development and security, Xinhua reported.

“Safeguard the authority of the international rule of law. It can’t be ‘use it when it suits us, discard it when it doesn’t,’ and we cannot allow the world to revert to the law of the jungle,” Xi said.

Oil falls and stocks gain on hopes of renewed US-Iran talks

Asian stocks were trading higher tracking and oil fell on Tuesday as expectations rose over a possible second round of talks between the U.S. and Iran.

Benchmark U.S. crude fell 1.7% early Tuesday to $97.37 a barrel. Brent crude, the international standard, was down 0.9% to $98.49 per barrel.

Tokyo’s Nikkei 225 was up 2.3% to 57,804.81. South Korea’s Kospi jumped 2.7% to 5,968.06.

Hong Kong’s Hang Seng rose 0.5% to 25,783.41, while the Shanghai Composite index climbed 0.5% to 4,007.93.

Oil prices continued to pull back on Tuesday from earlier gains.

Pakistan proposes second round of talks in Islamabad

Pakistan has proposed hosting a second round of talks between the United States and Iran in Islamabad in the coming days, before the end of the ceasefire, two Pakistani officials said.

The officials, who spoke on condition of anonymity because they were not authorized to discuss the matter with the press, said the proposal would depend on whether the parties request a different location.

One of the officials said that, despite ending without an agreement, the first talks were part of an ongoing diplomatic process rather than a one-off effort.

— By Munir Ahmed