US–Iran Peace Talks Collapse in Islamabad as Washington Issues ‘Final Offer’

High-stakes peace talks between the United States and Iran have ended without a deal after marathon negotiations in Islamabad, raising fresh uncertainty over the fragile ceasefire and the wider regional conflict.

Speaking after the talks, US Vice-President JD Vance said both sides failed to reach an agreement, blaming Tehran for rejecting Washington’s terms.

“We just could not get to a situation where the Iranians would accept our terms,” Vance said, adding that the United States had presented its “final and best offer.”

Iran, however, pushed back, with its foreign ministry accusing Washington of making “excessive demands” and insisting that any agreement must respect its “legitimate rights and interests.”

The negotiations, which lasted over 20 hours, were widely seen as a long shot, with deep divisions between both sides on key issues, including Iran’s nuclear programme and broader security concerns in the region.

The failure of the talks has cast doubt on the durability of the recent ceasefire, with analysts warning that hostilities could resume if diplomatic efforts stall.

The breakdown also comes amid rising tensions across the Middle East. Israel’s military said it carried out strikes on targets in southern Lebanon, while both Israel and Lebanon are expected to hold separate talks in Washington next week.

Despite the setback, Iranian officials signalled that diplomacy remains open. A spokesperson said expectations for a quick agreement were unrealistic, noting that the talks took place in an atmosphere of “mistrust, suspicion and doubt.”

Meanwhile, Pakistan, which hosted the negotiations, urged both sides to uphold the ceasefire and continue dialogue, stressing the need for lasting peace in the region.

The outcome leaves critical questions about the next steps, as global attention turns to whether renewed diplomacy or escalating conflict will define the next phase of US-Iran relations.