Skip to content
You can now search across every topic, entity and event.What's new
European Energy Markets
31JUL

Pakistan takes over the Iran channel

2 min read
09:44UTC

Iran's interior minister flew to Pakistan for the second time in ten days to meet the army chief, and the precondition Islamabad set broke the same morning.

EconomicDeveloping
Key takeaway

Pakistan now brokers the war, on a condition the Houthis broke within hours of it being set.

Iran's Interior Minister Eskandar Momeni met Pakistan's army chief, General Asim Munir, in Islamabad on his second visit to the country in ten days, according to a Reuters account published on 25 July, with China separately pushing the same track 1. A Pakistani official said a halt to attacks on Saudi Arabia and other Gulf states is now a precondition for talks to resume 2.

Momeni is an unusual envoy for a nuclear-adjacent negotiation. Interior ministers run police forces, not foreign policy; his standing here comes from being described as close to the Islamic Revolutionary Guard Corps, which means Islamabad is talking to the institution that fires the missiles rather than the ministry that signs the paper. Pakistan has held this brokerage before, and it inherits the file from a Qatar, Egypt, Pakistan and Oman ceasefire plan submitted on 22 July that produced no truce.

The Baghdad channel needs a clarification we owe readers. Ali al-Zaidi's visit to Tehran on 23 July is not in dispute: his own statement and Iranian state coverage place the Iraqi prime minister at Saadabad Palace with President Masoud Pezeshkian, signing agreements on transport, rail construction, a Tehran-Baghdad sister-city arrangement and public administration. What Baghdad's media office called "completely baseless" is the narrower New York Times claim that he carried a US ceasefire proposal and that Iran rejected it . Tehran has never confirmed that claim either, and Press TV's own coverage records neither side confirming messages passing through Washington.

Islamabad's precondition lasted hours. Houthi missiles reached Jazan and Yanbu the same morning it was conveyed, an escalation Iran supplies personnel to and does not fully command 3. A mediator whose entry condition can be broken by a third party it does not control has bought itself a channel that any Houthi launch officer can close, which is the structural weakness of routing this war's diplomacy through a state with leverage in Tehran and none in Sanaa.

Deep Analysis

In plain English

Iran's Interior Minister Eskandar Momeni has now visited Pakistan twice in ten days, meeting Pakistan's army chief Asim Munir. This matters because Pakistan, backed by China, appears to be taking over as the main channel for indirect US-Iran talks, after earlier attempts through Oman, Qatar and Iraq all stalled or ran into disputes. But the diplomatic effort barely got going before it hit a problem: Pakistan reportedly wants a halt to attacks across the Gulf as a condition for serious talks, and that condition broke within hours when Houthi forces, aligned with Iran but not directly controlled by it, struck two Saudi energy sites.

Deep Analysis
Root Causes

Pakistan's standing to mediate rests on a structural position neither the US nor Iran can easily replace: it maintains working military ties with Washington while sharing a long land border and demographic overlap with Iran, and China's backing gives it economic leverage over Tehran that neither Oman nor Iraq can offer.

That structural fit does not solve the precondition problem: Islamabad's own precondition for a serious channel, a halt to Gulf attacks, was broken within hours by the Houthi strikes on Jazan and Yanbu , an escalation Pakistan cannot control because it originates with a different Iranian-aligned actor entirely.

What could happen next?
  • Meaning

    A fourth mediation channel opening within weeks of three prior ones stalling suggests neither side wants to be seen closing the door, even without proximity to terms.

    Immediate · Reported
  • Risk

    Pakistan's stated precondition breaking within hours shows the channel cannot control the actor most likely to derail it, the Houthis.

    Immediate · Assessed
  • Opportunity

    Chinese backing gives the Islamabad channel financial leverage over Tehran that earlier channels lacked, which could make it more durable if the precondition issue is managed.

    Medium term · Suggested
First Reported In

Update #162 · Munitions, not Iran, halted US bombing

GlobalSecurity.org (citing Reuters, New York Times, White House)· 26 Jul 2026
Read original
Different Perspectives
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.
European Commission
European Commission
Brussels holds the bloc to 90% on a flexible window while Germany, holding roughly a quarter of EU storage capacity, tracks toward missing its own lower 80% figure by 21 points. A national shortfall this size in the anchor market matters more to bloc security than the flexible timetable alone can absorb.
French power exporters and CRE
French power exporters and CRE
French day-ahead rose in step with Germany but by less, reopening a EUR 7-17 premium that makes northward export flows commercially attractive again after the EUR 43.09 discount evaporated in days. CRE separately authorised RTE and Enedis to buy flexibility locally, betting the coming winter's binding constraint is grid congestion rather than a shortage of firm capacity.
TTF trading desk
TTF trading desk
A visible national shortfall like Germany's 21-point gap is a directional signal, not noise, for a desk holding the summer-winter spread. TTF's flat EUR 58-60 range through this week's German price swings says the market has not yet chosen to reprice refill risk into the front of the curve.
German cavern and CCGT operators
German cavern and CCGT operators
German caverns kept buying prompt gas at TTF near EUR 58-60 through the inversion; the wind collapse to 2.4 GW then flipped the spark spread to plus EUR 29 and put turbines back in the same queue. Every day turbines win that bid, injection at a third of the 877 GWh/day pace needed falls further behind.
Slovakia
Slovakia
Slovakia says it dropped its hold-out on the 21st sanctions package only after Ursula von der Leyen personally signed written gas-price and supply guarantees. The Council of the European Union's own 17,238-character release on the package names neither Slovakia nor any guarantee, leaving Bratislava's account unconfirmed by the institutional record.