Iran Rejects US Demands, Pakistan Mediates Hormuz
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- Iran says it will not accept 'maximalist' US demands, demonstrating continued resistance to US conditions.
- Pakistan hosts talks between Iranian Foreign Minister Abbas Araqchi and Prime Minister Shehbaz Sharif, and plans to mediate between Tehran and Washington.
- US special envoy Steve Witkoff and Jared Kushner travel to Islamabad, while Defense Secretary Pete Hegseth urges Iran to abandon nuclear ambitions for a deal.
- Trump says Iran will make an offer to satisfy US demands, but details remain unknown; Vice President JD Vance is ready to travel to Pakistan.
- Hormuz Strait remains largely closed, with few ships crossing, keeping oil and LNG shipments at a fraction of normal levels.
Why it matters: Oil exporters and global markets gain clarity on potential continued Hormuz blockage, while US and Iran lose diplomatic leverage; the standoff risks keeping oil prices above $80 per barrel, tightening inflation for consumers.
