Key insights
- Trump canceled a planned envoy visit to Pakistan after Iranian officials left early, citing wasted time and internal confusion within Iran's leadership. He asserted the U.S. holds all the leverage and Iran only needs to call to negotiate. Iran downplayed the mission and threatened retaliation if the U.S. continues its blockade. This increases geopolitical risk, potentially impacting oil prices and risk sentiment in equity markets.
Investing.com -- U.S. President Donald Trump said he canceled the planned visit of U.S. envoys to Islamabad on Saturday in a post on Truth Social, adding that the US has "all the cards" and all Iran has to do "is call." Jared Kushner and Steve Witkoff were scheduled to arrive this weekend in Pakistan for a fresh round of diplomacy aimed at ending the eight-week conflict with Iran, but their trip was canceled after Iran’s Foreign Minister Abbas Araqchi left Pakistan early, before the envoys arrived.
In a post on Truth Social, Trump stated: "Too much time wasted on traveling, too much work! Besides which, there is tremendous infighting and confusion within their “leadership.” Nobody knows who is in charge, including them. Also, we have all the cards, they have none! If they want to talk, all they have to do is call!!!"
The post followed Araqchi’s early departure from Islamabad. Prior to leaving, he met with Pakistani officials and relayed Tehran’s negotiating positions, along with its concerns over U.S. demands.
In a Telegram post, Araqchi said that he “outlined Iran’s principled positions regarding recent developments related to the ceasefire and the complete end of the war” to Pakistani officials.
Meanwhile, an Iranian diplomatic source told Reuters: “Principally, Iranian side will not accept maximalist demands."
While Araqchi reached Islamabad on Friday, Tehran had publicly downplayed the mission, with a foreign ministry spokesperson confirming that Iranian officials have no plans to meet directly with the Americans, intending instead to convey observations through Pakistani mediators.
Meanwhile, the Khatam al-Anbiya Central Headquarters, the highest operational command center of Iran’s armed forces, has threatened the United States with retaliation from Iran’s armed forces if the US continues its blockade, according to the official news agency IRNA.
"We are ready and determined, while monitoring enemy movements and behavior in the region," the Iranian army said in a statement.
Reza Talaei-Nik, the spokesperson for Iran’s Ministry of Defense said the ministry is well-equipped, and the country’s weapon and ammunition needs continue to be met and its strategic reserve maintained.
The standoff between Washington and Tehran has become increasingly costly. Iran has effectively shut the Strait of Hormuz — a vital route for about one-fifth of global oil flows — while the United States continues to restrict Iranian oil exports.
Iran’s Imam Khomeini International Airport (IKA) officially resumed operations this morning, marking a tentative step toward normalcy following the recent conflict.
Domestic carriers have already commenced initial flight schedules, with the first aircraft departing for Istanbul and Muscat.
The diplomatic friction coincides with a deepening economic squeeze. The U.S. continues to maintain a naval blockade on Iranian ports, forcing a near-total shutdown of the Strait of Hormuz.
As the U.S. aims to force Tehran into concessions regarding its nuclear program and regional activities, ship-tracking data reveals a stark reality: fewer than five ships crossed the waterway in the last 24 hours, compared to pre-war averages of 130 per day.
Despite the gridlock, President Trump remains optimistic, suggesting that Iran is preparing to make an offer. White House officials have pointed to "some progress" in recent days, though they have stopped short of providing details.
Meanwhile, the human and economic costs continue to mount. With over 5,000 lives lost and U.S. gasoline prices reaching multi-year highs, the conflict has become a significant political liability.
The US Navy is hunting for and clearing out mines in the Strait of Hormuz as a step toward opening up the Strait, U.S. officials have said. However, experts have pointed out that the process could take months. According to an unnamed source mentioned in a report by AP, Pentagon officials have admitted to US lawmakers that the process could take six months.
While not providing a timeline, Defense Secretary Pete Hegseth stated in a news conference Friday that they are confident of their ability to clear any mines they identify.
Meanwhile, Trump has ordered the Navy to attack boats that are laying mines in the strait.
Global energy markets remain on edge as investors weigh the potential for a ceasefire against the risk of prolonged regional instability. Brent crude has traded above $105 per barrel this week, driven by uncertainty over the peace talks and the continued throttling of essential supply routes.
Although Israel and Lebanon have extended their own ceasefire, the broader standoff between Washington and Tehran continues to cloud the global growth outlook. The "clock is ticking" for both sides, but until a unified diplomatic channel is established, the risk premium on energy assets is unlikely to dissipate.
Simon Mugo contributed to this article