US-Iran peace talks in Islamabad collapsed after a 21-hour marathon session failed to yield a deal, prompting President Donald Trump to vow a naval blockade of the Strait of Hormuz. The two sides had sent large delegations—including two planeloads of Iranian negotiators and nearly 300 US officials—but were unable to resolve a 20-year nuclear dispute compounded by new issues such as control of the strait and compensation for US attacks.
Robert Malley, a veteran of previous nuclear talks, noted that 21 hours was either too many or too few to achieve a breakthrough. The breakdown immediately rattled markets, with Australia's S&P/ASX 200 falling 0.8% and oil prices rising above $100 a barrel. Analysts warned that a blockade could disrupt global oil supply, fuel inflation, and complicate central bank policies.
Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, taunted Trump over rising petrol prices, posting an image of Washington-area gas station figures with the message: 'Enjoy the current pump figures. With the so-called ‘blockade', Soon you'll be nostalgic for...'
Separately, Trump launched a scathing attack on Pope Leo XIV, calling him 'weak on crime' and 'terrible for foreign policy' after the pontiff denounced the 'delusion of omnipotence' fueling the US-Israel war in Iran and prayed for peace. Trump insisted he was not a fan of the pope, who he claimed only became pope because of his presidency.
