The United States is reportedly exploring the possibility of a second set of peace negotiations with Iran in Pakistan, expressing confidence in reaching an agreement. This comes as Iran has warned of closing Red Sea trade routes unless the US lifts its naval blockade on Iranian ports.

A delegation from Pakistan touched down in Tehran on Wednesday, bringing a fresh proposal from Washington. This development follows a statement from US President Donald Trump, who suggested that discussions might restart this week. The prior talks in Islamabad over the weekend did not yield a resolution.

Leading the initial discussions, US Vice President JD Vance mentioned that a “grand bargain” is being proposed to Iran. This offer aims to conclude the six-week conflict and tackle the long-standing issues surrounding Iran’s nuclear activities.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu remarked on Wednesday that Israel and the United States share unified objectives concerning Iran.

“We aim for the removal of enriched materials from Iran, the cessation of enrichment capabilities within the country, and certainly, we want the Strait of Hormuz to be reopened,” he stated.

Investor confidence was reflected in market activities, with stocks climbing and crude oil prices declining. This positive sentiment is tied to the potential for an agreement that would allow oil to flow again through the Strait of Hormuz, a key point of contention since it was blocked by Iranian forces following the US-Israeli military actions.

‘Close to being over’

The US has sought to turn the screws on Iran with a blockade of its ports, with the US Central Command claiming to have “completely halted economic trade going into and out of Iran by sea”.

The picture based on recent maritime tracking data in the Strait of Hormuz was less clear-cut, and Iran’s Tasnim news agency reported shipping has continued from southern Iran.

But the head of Iran’s military central command centre warned a US failure to lift the blockade would constitute “a prelude” to violating the two-week ceasefire struck on 8 April.

Speaking to the New York Post on Tuesday, Trump said a new round of talks could take place in Pakistan “over the next two days”, while telling Fox Business the war was “very close to being over”.

On the Iranian side, a foreign ministry spokesman said “several messages” had been exchanged via Islamabad since talks wrapped up on Sunday.

Foreign minister Abbas Araghchi on Wednesday welcomed a Pakistani delegation led by army chief Asim Munir in Tehran that Iranian state television said was to relay a new US message and discuss a second round of talks.

‘Grand bargain’

Trump has insisted that any deal must permanently bar Iran from acquiring a nuclear weapon.

Reports said the US had sought a 20-year suspension of Iran’s uranium enrichment programme during the Islamabad talks, and that Iran, in turn, proposed suspending its nuclear activity for five years — an offer US officials rejected.

Tehran has always insisted its nuclear programme is for civilian purposes and its foreign ministry said Wednesday that Iran’s right to enrich uranium was “indisputable”, although the level of enrichment was “negotiable”.

The US vice president said Tuesday that Trump had pledged to “make Iran thrive” if it committed to “not having a nuclear weapon”.

“That’s the kind of Trumpian grand bargain that the president has put on the table,” Vance said, adding: “We’re going to keep on negotiating and try to make it happen.”

Lebanon talks

The latest signals on US-Iran talks came as Israel and Lebanon also agreed to open direct negotiations after their first high-level face-to-face meeting since 1993 took place on Tuesday, local time, in Washington.

Netanyahu on Wednesday spoke of two central objectives in the negotiations with Lebanon: “First, the dismantling of Hezbollah; second, a sustainable peace … achieved through strength.”

The Trump administration is pressing hard for an end to the conflict between Israel and Iran-backed Hezbollah militants in Lebanon, fearing it could jeopardise a broader settlement.

The US state department said “all sides agreed to launch direct negotiations at a mutually agreed time and venue”.

But the diplomatic push remained fragile with Hezbollah, which is hostile to any talks, firing dozens of rockets at Israel, whose military claimed hits on more than 200 targets linked to the militant group in Lebanon over 24 hours.

Israel’s military chief of staff said he had ordered areas south of Lebanon’s Litani River to be turned into a Hezbollah “kill zone” as troops pressed a major offensive there.

Lebanese authorities said Israeli strikes on the country’s south killed at least three paramedics on Wednesday.

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