US says no deal so far after Iran did not accept terms

By Ariba Shahid, Asif Shahzad and Parisa Hafezi

ISLAMABAD, April 12 (Reuters) – U.S. Vice President J.D. Vance said on Sunday that no deal had been made with Iran after 21 hours of talks in Pakistan: https://www.reuters.com/world/asia-pacific/pakistani-five-star-hotel-becomes-unlikely-site-us-iran-talks-2026-04-11/, pointing out shortcomings in the talks and Iran’s He said he “chose” not to accept the US terms.

An Iranian state television reporter said talks would continue Sunday, but Vance made no mention of resuming talks.

The talks in Islamabad were the first direct US-Iran meeting in more than a decade and the highest-level talks since the 1979 Islamic Revolution. The outcome could determine the fate of a fragile two-week ceasefire and the reopening of the Strait of Hormuz, the transit point for nearly 20% of global energy supplies that Iran has blocked since the war began. The conflict caused global oil prices to soar and killed thousands of people.

The Iranian government said in a post on channel X that the talks had been concluded and technical experts from both sides would exchange documents.

“Despite some remaining differences, negotiations will continue,” the post said, but did not specify when they would resume.

According to a source, Vance https://www.reuters.com/world/us/vance-warns-iran-not-play-us-he-leaves-talks-2026-04-10/, special envoy ⁠Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner met with Iranian Parliament Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi for two hours before resting. The mediator is from Pakistan.

The Iranian delegation wore black on Friday to mourn the late Supreme Leader Ayatollah Ali Khamenei and others killed in the war. The Iranian government said they were carrying the shoes and bags of some of the students killed when the US bombed school nL6N400164 next to a military compound. The Pentagon said the attack was being investigated, but Reuters https://www.reuters.com/world/middle-east/us-investigation-points-likely-us-responsibility-iran-school-strike-sources-say-2026-03-06/ reported that military investigators believe the United States was responsible for the attack.

“There were changes in the mood of the two sides and the temperature waxed and waned during the meeting,” another Pakistani source said, referring to the first round of talks.

Islamabad, a city with a population of more than 2 million, was locked in the streets with thousands of paramilitary personnel and army units for the US-Iran talks.

Pakistan’s mediation role is a remarkable transformation for a country that was a diplomatic pariah a year ago.

HORUZ STRAIT

As the talks began, the US military said that “conditions have been determined” to begin clearing the Strait of Hormuz.

The Strait of Hormuz is at the center of ceasefire talks. The US military said two of its warships had passed through the strait and conditions had been set for demining, while Iranian state media denied that any US ships had passed through the waterway.

Before the talks began, a senior Iranian source told Reuters that the United States had agreed to release nL1N40U035 frozen assets in Qatar and other foreign banks. A US official denied agreeing to release the money.

Tehran is demanding the release of assets abroad, as well as control of the Strait of Hormuz, payment of war reparations and a ceasefire across the region, including Lebanon, according to Iranian state television and officials.

Tehran nL6N40U01E also wants to collect the toll nL1N40Q0L0 in the Strait of Hormuz.

Trump’s stated goals have changed, but he at least wants free passage for global shipping through the strait and the crippling of Iran’s nuclear enrichment program to ensure it cannot produce an atomic bomb.

US ally Israel, which participated in the February 28 attacks on Iran that started the war, is also bombing Tehran-backed Hezbollah militants in Lebanon and says the conflict is not part of the Iran-US ceasefire.

Mutual distrust is high.

(Reporting by Reuters bureaus worldwide; Writing by Idrees Ali; Editing by Lisa Shumaker)