The United States and Iran are moving toward a possible resumption of ceasefire negotiations in Pakistan, with talks expected as early as Wednesday as both sides race against an expiring truce and mounting regional tensions.

US officials expressed cautious optimism that diplomacy could regain traction after earlier rounds in Islamabad failed to produce an agreement.

President Donald Trump signaled he is open to participating in the talks if progress warrants it.

“I have no problem meeting them. If they want to meet, and we have some very capable people, but I have no problem meeting them,” Trump said, according to The New York Times.

Washington is seeking a deal that would stabilize global energy markets and prevent further escalation, while maintaining its position that Iran must not retain the capability to develop nuclear weapons.

Tehran, meanwhile, is pursuing sanctions relief while aiming to preserve its nuclear program. It has also leaned on its strategic position near the Strait of Hormuz, a key artery for global oil shipments, as leverage in negotiations.

Renewed diplomacy

An Iranian official said the government is “positively reviewing” the possibility of returning to the negotiating table, marking a shift from earlier refusals to engage amid heightened tensions.

Financial markets reacted quickly to signs of renewed diplomacy. Oil prices eased in early Asian trading, reversing previous gains fueled by fears of supply disruptions.

Both Brent crude and US benchmark prices declined as expectations grew that talks could help stabilize the situation.

Despite this momentum, deep mistrust continues to complicate the path to an agreement.

Iran has accused the United States of intercepting one of its commercial vessels over the weekend, calling the move a violation and demanding the immediate release of the ship and its crew.

US officials defended the interception, saying the vessel carried materials with potential military use and had ignored repeated warnings. The incident has further strained already fragile relations.

Blockades

Iran has warned it will defend its interests if tensions escalate, while also criticizing what it described as pressure-driven diplomacy.

The conflict, which began in late February, has already led to significant casualties and disrupted energy flows, raising concerns about a prolonged crisis that could weigh on the global economy.

Both sides have imposed and lifted blockades near critical oil transit routes at various points, intensifying fears over energy security.

Pakistan, acting as mediator, has urged restraint and called for measures that would allow negotiations to proceed without further escalation.

With the ceasefire set to expire within days, the next round of talks is seen as pivotal.

While US officials say a deal remains within reach, both Washington and Tehran have warned of further action if negotiations collapse, underscoring the high stakes surrounding the fragile diplomatic effort.