The United States and Iran are expected to return to the negotiating table on Wednesday as a temporary ceasefire between both countries moves closer to its expiry, raising fresh hopes of easing tensions in the Middle East.
American officials said they were optimistic the talks would go ahead in Pakistan, while a senior Iranian official indicated Tehran was still weighing whether to participate.
The renewed diplomatic effort comes amid growing concerns over global oil supply and wider geopolitical risks.
US President Donald Trump has maintained that any future agreement must ensure Iran does not acquire nuclear weapons.
Sources familiar with the discussions told Reuters that progress had been made ahead of the planned meeting.
“Things are moving forward, and the talks are on track for tomorrow,” one source said on condition of anonymity.
Although both sides have shown willingness to resume dialogue, major disagreements remain unresolved.
Iranian officials said the country was “positively reviewing” participation, but no final decision had been taken.
Tehran is also believed to be using its strategic control of the Strait of Hormuz as leverage in seeking sanctions relief and guarantees against renewed hostilities.
Washington, however, continues to insist that any deal must include firm restrictions on Iran’s nuclear programme.
The planned negotiations follow a two-week ceasefire agreement reached on April 8 after a sharp escalation in regional tensions.
That truce included the reopening of the Strait of Hormuz, one of the world’s most critical oil shipping routes.
The ceasefire was reportedly brokered by Pakistan with support from China, shortly before a US deadline for further escalation.
Previous talks in Islamabad failed to secure a lasting breakthrough, fuelling fears of renewed conflict.
Oil markets reacted cautiously to the latest developments, with Brent crude and US West Texas Intermediate slipping slightly in early trading as investors responded to hopes of resumed diplomacy.
Despite the diplomatic momentum, tensions remain high.
Iran recently accused the United States of intercepting one of its commercial vessels, calling the action a breach of the ceasefire.
US officials, however, said the vessel ignored warnings and may have been transporting dual-use materials.
China, a key buyer of Iranian crude, has also voiced concern over the incident and warned of its potential impact on regional stability.
Analysts say the coming talks could prove decisive not only for peace efforts in the region, but also for global energy prices and wider financial markets.