World April 25, 2026 11:43 AM

Iran Rejects 'Maximalist' U.S. Terms as Pakistan Pushes to Cement Ceasefire

Tehran outlines principled positions after Islamabad talks while regional transport and energy flows remain disrupted

By Maya Rios
Iran Rejects 'Maximalist' U.S. Terms as Pakistan Pushes to Cement Ceasefire

Iran’s foreign minister, Abbas Araqchi, presented Tehran’s demands and reservations regarding U.S. positions following discussions with Pakistan’s leadership as Islamabad intensifies mediation efforts to end the conflict. Although a ceasefire is in place, key regional corridors including the Strait of Hormuz and air routes remain constricted, keeping energy markets and global transport under pressure.

Key Points

  • Iran’s foreign minister met Pakistani leaders and outlined Tehran’s principled positions while rejecting what it calls maximalist U.S. demands - impact on diplomacy and regional negotiations.
  • Transport and energy flows remain constrained: flights from Tehran have only partially resumed; shipping through the Strait of Hormuz is dramatically reduced, contributing to a 16% surge in Brent crude - impact on energy markets and shipping sectors.
  • U.S. officials continue to press for verifiable Iranian concessions while Pakistan mediates, creating sustained policy uncertainty affecting global trade and financial markets.

Iran’s top diplomat to Pakistan, Foreign Minister Abbas Araqchi, set out his country’s positions and cautions about U.S. demands on Saturday after meetings with Prime Minister Shehbaz Sharif and other senior Pakistani officials, Pakistani government sources said. Araqchi and his delegation left Islamabad under the protection of a military jet, according to those sources, though officials released few details of the discussions.

Pakistan’s renewed push to broker a settlement comes amid a wider impasse between Tehran and Washington. Iran has previously ruled out another round of direct talks with the United States, and in recent weeks Tehran has largely closed the Strait of Hormuz - a waterway that typically handles about one-fifth of global crude and liquefied natural gas shipments - even as the United States has been restricting Iran’s oil exports.

Tehran outlines its stance

In a statement posted on the foreign minister’s official Telegram account, Araqchi said he had "explained our country’s principled positions regarding the latest developments related to the ceasefire and the complete end of the imposed war against Iran." An Iranian diplomatic source in Islamabad told Reuters that, "Principally, Iranian side will not accept maximalist demands."

The conflict began with U.S.-Israeli airstrikes on Iran on February 28 and, although a ceasefire is now in place, the period of active hostilities that followed saw Iran strike targets in Israel, U.S. bases and Gulf states. That round of fighting sent energy prices to multi-year highs, contributing to inflationary pressure and dimming prospects for global growth.

U.S. officials have urged Iran to take advantage of a chance to strike a deal. U.S. Defence Secretary Pete Hegseth told reporters Iran had a window to "choose wisely," saying, "All they have to do is abandon a nuclear weapon in meaningful and verifiable ways."

Diplomatic contacts and uncertainty

Araqchi arrived in Islamabad on Friday. An Iranian foreign ministry spokesperson later posted on X that Tehran’s delegation did not plan to meet U.S. representatives directly and that Iran’s concerns would be conveyed to Pakistan as mediator. It was not immediately clear if or when Araqchi would return to Pakistan after his departure.

The White House had said President Donald Trump’s special envoy Steve Witkoff and Jared Kushner would travel to Islamabad on Saturday. Trump told Reuters on Friday that Iran planned to submit an offer designed to address U.S. demands but said he did not know the details of any proposal and declined to identify with whom Washington was negotiating. White House press secretary Karoline Leavitt said the U.S. had observed some recent movement from the Iranian side and hoped for further progress, while Vice President JD Vance was reported to be prepared to travel to Pakistan as well.

Transport corridors remain constrained

Although the ceasefire extension has allowed some normalization, limitations on transport and trade persist. Days after the ceasefire was extended, international flights resumed from Tehran’s Imam Khomeini International Airport, with initial departures to Medina, Muscat and Istanbul. Iranian media described passengers queuing at check-in desks and quoted a traveler saying, "Well, it’s a good feeling. When flights resume, trade is done, and people can do their jobs. It’s a good feeling." Prior to this, Iranian airspace had largely been closed since the start of the conflict, contributing to the cancellation, rerouting and rescheduling of tens of thousands of flights worldwide because of missile and drone threats.

Shipping through the Strait of Hormuz remains sharply reduced. Shipping data showed that five ships transited the strait in a 24-hour period, compared with roughly 130 a day before the war. Among those five was an Iranian oil-products tanker, but none were the large crude supertankers that normally underpin global oil supplies. Data analytics firm Vortexa reported 35 total transits through the U.S. blockade from April 13 to 22, involving Iran-linked or sanctioned vessels on inbound and outbound journeys.

Market reactions to these disruptions have been significant. Brent crude futures rose sharply this week, surging 16% amid uncertainty over negotiations and renewed regional violence.

Military posture and regional ceasefires

Iranian state media quoted a defence ministry spokesperson as saying, "The enemy, whose objective of crippling Iran’s missile and military capabilities has failed, is now seeking an honorable exit from the quagmire of war," adding, "Iran is today in firm control of the Strait of Hormuz." Iranian state television also cited the country’s top military command reiterating that Iran would respond if U.S. forces continued what it called a "blockade and piracy" in the region.

On a related front, Israel and Lebanon extended their ceasefire for three weeks at a White House meeting brokered by Trump. Nevertheless, there are few signs of a lasting end to hostilities in southern Lebanon. Israel invaded its northern neighbour last month, citing the need to counter Iran-backed Hezbollah after the militant group fired across the border. Tehran has said a ceasefire in Lebanon is a precondition for broader talks.

Violence in the Lebanon-Israel front persisted even after the extension: Lebanon’s state news agency reported that four people were killed in Israeli strikes in southern Lebanon on Saturday, and the Israeli military said Hezbollah had fired rockets at Israel.

Outlook and constraints

Pakistan’s mediation effort seeks to translate the ceasefire into a more enduring resolution, but significant obstacles remain. Tehran has set out clear limits on what it will accept, describing some U.S. positions as maximalist, while U.S. officials continue to press for verifiable steps related to Iran’s nuclear ambitions. Meanwhile, disruptions to air and sea routes continue to constrain trade and energy supplies, sustaining elevated prices and market uncertainty.


Summary

Iran’s foreign minister conveyed Tehran’s positions and reservations over U.S. demands during talks in Islamabad as Pakistan increased efforts to mediate an end to the conflict. The ceasefire has allowed some resumption of flights but major transport routes including the Strait of Hormuz remain limited, sustaining high energy prices and market volatility. Diplomatic uncertainty persists as Tehran says it will not accept maximalist demands and U.S. officials urge Iran to take a chance on a negotiated settlement.

Risks

  • Fragile ceasefires and continued cross-border hostilities, particularly in southern Lebanon, pose a risk of renewed fighting that would further disrupt energy and transport sectors.
  • Persistent restrictions on the Strait of Hormuz and other trade routes could keep oil and LNG supplies constrained and sustain price volatility, affecting inflation and economic growth prospects.
  • Diplomatic deadlock - Tehran’s refusal to accept maximalist demands and the absence of direct Iran-U.S. talks - increases uncertainty for negotiations and market stability.

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