How a Netanyahu phone call to JD Vance 'shifted focus' in Iran-US negotiations

The United States and Iran failed to reach a peace deal after marathon 21-hour talks in Islamabad, casting uncertainty over a fragile two-week ceasefire, with both sides blaming each other for the breakdown.US Vice President JD Vance, who led the American delegation, said Iran refused to accept Washington’s terms despite what he described as a "final and best offer." "We just could not get to a situation where the Iranians would accept our terms," Vance said, adding that, "We leave here with a very simple proposal… this is our final and best offer. We'll see if the Iranians accept it."Hours after the talks collapsed, US President Donald Trump posted on social media that negotiations failed because "Iran is unwilling to give up its nuclear ambitions."Iran, however, pointed to alleged external interference as a key reason for the breakdown. According to Iranian media, Foreign Minister Seyed Abbas Araghchi claimed that a phone call from Israeli Prime Minister Benjamin Netanyahu to Vance during the negotiations derailed progress."Netanyahu's call to Vance during the meeting shifted the focus from US-Iran negotiations to Israel's interests," Araghchi wrote on X, Press TV reported.

"The US tried to achieve at the negotiating table what it could not achieve through war," he added.The talks reportedly collapsed over unresolved differences on Iran’s nuclear programme, control of the Strait of Hormuz, and the release of frozen Iranian assets.Iranian officials said the atmosphere of mistrust also made a deal difficult. Foreign ministry spokesperson Esmaeil Baqaei said, "These talks happened in the aftermath of a 40-day war and in an ambiance of mistrust and skepticism." "Naturally, we should have never expected to reach a deal in one session. We will continue to work to bring the two views of Americans and Iranians closer together," he added.The failure of the talks casts immediate doubt on the durability of the tenuous ceasefire that had paused escalating hostilities. While neither side has formally declared an end to the truce, the lack of progress, combined with hardening rhetoric that suggests that renewed confrontation remains a real possibility.Uncertainty over oil shipping and energy prices has resurfaced after the collapse of the talks. Before the ceasefire announced on April 9, Brent crude had surged above $119 per barrel, its highest level since the early phase of the Strait of Hormuz crisis. The temporary diplomatic pause had eased prices to around $95, but that relief is now fading, analysts said, warning that crude could return to triple-digit levels if the ceasefire lapses without a follow-up agreement.Financial markets in Asia are also expected to react sharply when trading opens on Monday, with fears of disruption in the Strait of Hormuz likely to push oil prices higher. As per reports, analysts warn that crude could surge amid supply concerns, while equity markets, especially in energy-importing economies may face broad sell-offs.The juxtaposition of high-stakes diplomacy in Pakistan and escalating rhetoric elsewhere underscores the fragile balance between negotiation and confrontation, with consequences that could extend far beyond the region.