US, Iran weigh longer truce as Pakistan seeks compromise

Pakistan stepped up efforts to ensure the U.S. and Iran prolong a ceasefire beyond its official expiry date next week, though several barriers remain in place including Israel’s ongoing war in Lebanon.

Pakistan’s army chief, Asim Munir, traveled to Iran this week as part of the nation’s role as mediator between the warring sides, after hosting high-level talks between U.S. and Iranian officials last weekend. He was greeted by Iran’s Foreign Minister Abbas Araghchi, who had traveled to Islamabad for the inconclusive negotiations.

The U.S. and Iran are considering a two-week ceasefire extension, according to a person familiar with the matter, who asked not to be identified discussing sensitive matters. Neither side wants to resume fighting, said another person familiar with the discussions.

But comments from both Iranian and U.S. officials on Thursday suggest the sides remain far apart on key issues. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf, who took part in the Pakistan talks, said a permanent ceasefire must cover all areas, including Israel’s campaign against Tehran-allied Hezbollah in Lebanon.

“The ceasefire in Lebanon is as important as the ceasefire in Iran,” he told Lebanese counterpart Nabih Berri in a call, according to Iranian state TV.

Control over the Strait of Hormuz, a key waterway for energy supplies, remains contentious, with a U.S. naval blockade now into its fourth day. Iran, which has effectively shuttered the strait since the start of the war, is meanwhile pressing ahead with plans to charge ships for transit even after the war is over.

U.S. Defense Secretary Pete Hegseth said the U.S. military is ready to resume combat “at the push of a button,” whenever Trump gives the order, and warned Iran not to make poor choices. Washington and Tehran are saying they haven’t agreed to any ceasefire that lasts beyond late Tuesday U.S. time.

There is a possibility the conflict turns into a “frozen war,” according to Sorana Parvulescu, a partner for Europe, Middle East and Africa at Control Risks.

“That is becoming more feasible because there is no good military option on the table right now for the U.S. and because the deal is probably going to prove itself more elusive than meets the eye,” she said in an interview with Bloomberg TV on Thursday.

A key priority is reopening Hormuz, where tensions remain high as the U.S. continues a blockade of vessels bound for and from Iran. Trump announced the move after the talks in Pakistan’s capital of Islamabad ended without a deal.

Thirteen vessels have turned around rather than try to test the U.S. blockade, General Dan Caine, the chairman of the joint chiefs of staff, told reporters on Thursday.

Oil prices remain elevated due to the ongoing block on supplies. Brent crude climbed around 3% to almost $98 a barrel on Thursday after the comments from Ghalibaf and Hegseth.

Iran sees a prolonging of the U.S. blockade as “a prelude to a breach of the ceasefire,” said Ali Abdollahi, the commander of Iran’s joint military headquarters, according to state TV.

The White House hasn’t “formally requested an extension of the ceasefire,” Press Secretary Karoline Leavitt told reporters Wednesday. But she acknowledged “we remain very much engaged in these negotiations,” adding that Pakistan is the sole mediator.

The U.S. is sending thousands of additional troops to the Middle East in the coming days to pressure Tehran into making a deal, the Washington Post reported, citing officials it didn’t name.

The MSCI All Country World Index — the broadest measure of global shares — rose as much as 0.3% to a record and was headed for a 10th day of gains on Thursday, as markets broadly remained optimistic about a deal. Futures for the S&P 500 edged higher after the benchmark closed above the 7,000 mark for the first time.

While Israel joined the U.S. in halting attacks on Iran last week, its military has kept up the campaign against Hezbollah in Lebanon, complicating the broader push for peace.

Prime Minister Benjamin Netanyahu said he told the Israeli military, which invaded Lebanon last month, to expand the buffer zone it’s seeking to establish inside the country.

Negotiations are taking place about a potential ceasefire, Israel’s state-owned Kan News reported Wednesday, citing an unnamed official, who added no decision has been made.

Trump said in a post on social media on Wednesday that the leaders of Israel and Lebanon will hold talks on Thursday. As of late afernoon Israel and Lebanon times, there was no confirmation that the call had taken place. Lebanon’s LBCI reported that President Joseph Aoun had told U.S. Secretary of State Marco Rubio he would not speak to Netanyahu.

Beirut is seeking a ceasefire as an entry point for direct negotiations between the two countries, Aoun said on X, with the withdrawal of Israeli troops from the south of the country “an essential step.”

Trump later spoke to Aoun, with the latter’s office saying the U.S. was committed to a ceasefire in Lebanon.

Talks between Israel and the government in Beirut, which has little sway over Hezbollah, took place on Tuesday in Washington. That conflict has killed more than 2,000 people and displaced a million, according to Lebanese authorities.

Trump has vacillated between declaring the conflict with Iran nearly won and threatening escalation, while questions remain about the issues that drove the U.S. and Israel to launch the latest bombardment — chief among them concerns over Iran’s nuclear program.

Iran has said it isn’t pursuing a weapons program. The country’s right to peaceful use of nuclear energy “cannot be revoked,” Foreign Ministry Spokesman Esmail Baghaei said Wednesday. However, the level and type of enrichment are “negotiable,” he added.

Even with a deal, restoring Gulf energy flows fully may take weeks or even months, adding to fears of global inflation and a slowdown in economic growth. There are also concerns about disruptions to other supplies, particularly fertilizer, where shortages could hurt food output and raise prices.

The United Nations is ready to set up a corridor to move fertilizer through Hormuz, though it hinges on a political agreement, according to a top U.N. official.