Key Takeaway: Iran has not yet decided whether to attend a second round of peace talks in Islamabad after accusing the U.S. of violating the cease-fire by seizing an Iranian cargo ship. President Masoud Pezeshkian called for diplomacy but warned of deep distrust toward U.S. negotiators. The two-week cease-fire is at risk and oil prices rose to around $95/barrel. International efforts, including a potential European defensive mission and calls by China for a comprehensive cease-fire, seek to restore safe passage through the Strait of Hormuz.
Iran: 'No Decision Yet' on Islamabad Peace Talks After U.S. Seizes Ship — Cease-Fire in Jeopardy
U.S. President Donald Trump looks on during a press conference about the conflict in Iran at the White House on April 6, 2026. —Saul Loeb—Getty Images
Iran announced on Monday that it has not decided whether to send officials to a second round of peace talks in Islamabad after accusing the United States of breaching the fragile cease-fire by seizing an Iranian cargo ship in the Gulf of Oman.
Esmail Baghaei, a spokesperson for Iran’s Foreign Ministry, said there are currently "no plans for the next round of negotiations" and emphasized that Tehran will prioritize "national interests and benefits" when deciding whether to participate.
Iranian President Masoud Pezeshkian urged diplomacy while signaling deep mistrust of U.S. negotiators. "War benefits no one, and while standing firm against threats, every rational and diplomatic path should be used to reduce tensions," he said, adding that "distrust of the enemy and vigilance in interactions are undeniable necessities," according to state media.
Talks, Ship Seizure and the Cease-Fire
The planned second round of talks in Islamabad remains uncertain; only the U.S. delegation—again led by Vice President J.D. Vance—had been confirmed to attend. Vance was reported to be arriving with special envoy Steve Witkoff and Jared Kushner.
The two-week cease-fire, set to expire early Wednesday in Iran, is now at risk after U.S. forces intercepted an Iranian cargo vessel that Tehran says was trying to evade Washington’s blockade of the Strait of Hormuz. President Donald Trump said the U.S. Navy intercepted the ship in the Gulf of Oman, damaging its engine room, and that the vessel is now in U.S. custody.
U.S. Central Command (CENTCOM) reported that American forces have directed 27 vessels to turn back or return to Iranian ports since the blockade began on April 13.
Iran’s joint military command described the seizure as an act of piracy and accused the United States of violating the Pakistani-mediated cease-fire by continuing the naval blockade and detaining the ship.
Vice President J.D. Vance speaks as Jared Kushner and special dnvoy Steve Witkoff listen during a news conference after a meeting with representatives from Iran in Islamabad, Pakistan, on April 12, 2026. —Jacquelyn Martin–Pool/Getty Images
Domestic and Regional Reactions
Mohammad Reza Aref, Iran’s first vice president, warned that Tehran would apply economic pressure worldwide by restricting maritime navigation while the blockade continues. "The choice is clear: Either a free oil market for all or the risk of significant costs for everyone," he said, arguing that stable global fuel prices depend on a lasting end to economic and military pressure on Iran and its allies.
Baghaei also accused parties of additional violations related to Lebanon. The remarks coincided with an Israeli military statement that it would maintain positions in southern Lebanon and issue evacuation warnings in some areas. Last week, President Trump announced a 10-day cease-fire between Israel and Lebanon that took effect April 16; despite allegations of violations, it appeared largely holding as of Monday morning.
International Response and Market Impact
A State Department spokesperson told TIME that a second round of talks between Israel and Lebanon is scheduled to be held in Washington, D.C., on Thursday, and reiterated U.S. efforts to facilitate direct, good-faith discussions.
Following the ship seizure and renewed tensions over the Strait of Hormuz, oil prices rose: early trading on Monday saw Brent crude climb to roughly $95 per barrel, about a 5% increase from Friday’s close. Tehran’s restrictions on maritime passage since the initial U.S.-Israeli strikes on Feb. 28 and the ongoing uncertainty over access have contributed to market instability.
European leaders, led by British Prime Minister Keir Starmer and French President Emmanuel Macron, held a summit in Paris focused on safeguarding freedom of navigation. They said they would form a defensive multinational mission to protect merchant ships and clear mines, but only once conditions permit following a sustainable cease-fire.
Chinese President Xi Jinping called for "an immediate and comprehensive" cease-fire to restore normal passage through the strategic trade route.
Outlook
The situation remains volatile: Tehran has not committed to attending further talks, the cease-fire may not be extended if no agreement is reached, and both diplomatic channels and market stability hinge on the coming days. Threats and counteraccusations have increased regional tensions, increasing the risk that a diplomatic window could close unless both sides return to negotiated de-escalation.
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