Vice President JD Vance told reporters in Islamabad Sunday that after 21 hours of marathon talks in Pakistan, the United States and Iran failed to seal a cease‑fire deal. Accompanied by former White House adviser Jared Kushner and developer Steve Witkoff, Vance said Washington laid out its red lines and Iran rejected them.

The Iranian delegation, led by Parliament Speaker Mohammad‑Bagher Ghalibaf, focused on technical issues such as traffic through the Strait of Hormuz, a possible cease‑fire extension and phased sanctions relief, according to U.S. and Pakistani officials. Those topics skirted the core grievances that sparked the six‑week war, including Tehran’s support for proxies and its nuclear and missile programs.

The breakdown leaves a fragile two‑week ceasefire hanging by a thread, with oil tankers still struggling to navigate the Hormuz bottleneck and fighting between Israel and Hezbollah in Lebanon persisting. Market participants fear renewed shipping disruptions could tighten global oil supplies, nudging Brent crude toward $90 a barrel. The stalemate underscores immediate geopolitical risk for energy markets.

Investors will watch diplomatic channels closely; any reversal could revive demand for defense contracts and lift sanctions‑related equities. Meanwhile, shipping firms are likely to price in higher freight premiums until a durable settlement emerges. The uncertainty also pressures regional banks with exposure to Iranian trade.