U.S. Vice President JD Vance said no agreement was reached with Iran following extended negotiations held in Pakistan, signaling a setback after Washington presented what it described as its “final and best offer.” Iranian officials also expressed dissatisfaction, with their lead negotiator stating that U.S. representatives failed to build sufficient trust during the discussions.

The outcome leaves significant uncertainty around the fragile ceasefire that began Tuesday, though no specific date was provided for the start of the truce. Without a clear commitment from Iran to reopen the Strait of Hormuz, concerns are growing over continued disruptions to global energy markets, as the strategic waterway remains a critical route for oil shipments.

Regional tensions remain elevated beyond the stalled talks. Diplomatic engagement between Israeli and Lebanese officials is expected in the coming week, even as hostilities persist. Israeli forces reported overnight strikes in southern Lebanon, stating they targeted and destroyed a rocket launcher prepared for imminent use. The strikes reportedly resulted in casualties, underscoring the ongoing volatility in the region.

The lack of progress in negotiations highlights broader challenges in restoring stability, with both diplomatic and military developments shaping an increasingly uncertain outlook.