Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
10JUL

Islamabad talks open in separate rooms

3 min read
09:40UTC

The first formal US-Iran negotiating session since 1979 opened at the Serena Hotel in Islamabad on Saturday with both delegations staying in separate rooms. Pakistani officials physically walked messages between them.

EconomicDeveloping
Key takeaway

Vance and Ghalibaf are in the same hotel but will not meet, by design.

Vice President JD Vance arrived at Nur Khan air base on Friday leading a 30-member US delegation that includes Steve Witkoff and Jared Kushner . Iran sent Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. Both delegations are staying at the Serena Hotel, where Saturday's talks are taking place, in separate rooms; Pakistani officials physically walk messages between them, and no face-to-face meeting is contemplated 1.

The historical precedent cited by Pakistani officials is the 1988 Geneva Accords on Afghanistan, when Afghan and Pakistani delegations never met directly. Zamir Akram, a former Pakistani ambassador to the United Nations, described Islamabad's own success bar on the record: "breathing space, not expecting anything big" 2. Pakistani diplomats logged more than 25 high-level contacts in the run-up to the summit.

Ghalibaf went to meet Prime Minister Shehbaz Sharif before any contact with the Americans, and Iranian state television said the "timing of talks with the US delegation will be determined after preconditions are clarified" through the Pakistani mediators 3. This is the same Ghalibaf who rejected the ceasefire framework earlier in the week and whose presence in the room gives the Supreme Leader's inner circle a pre-built justification for walking out . The format is designed to survive failure, not to produce success.

Deep Analysis

In plain English

The US and Iran have not held formal talks since the 1979 Iranian revolution made them enemies. In Islamabad, both sides are staying in the same hotel but in separate rooms — Pakistani officials physically walk messages back and forth between them, like a diplomatic version of passing notes through a classroom. This format is called a 'proximity talk'. It was chosen because both sides want to keep talking, but neither can afford to be seen sitting across a table from the other without facing severe domestic backlash. Pakistan's own goal, by its own admission, is simply to keep the conversation going — not to reach an agreement.

Deep Analysis
Root Causes

The proximity format reflects a specific domestic political constraint on both sides. For Iran, direct contact with the US would require the Supreme Leader's explicit public sanction — which Mojtaba Khamenei has not given — while the presence of Ghalibaf rather than Araghchi alone signals the format was designed to maintain deniability for the leadership.

For the US, the Witkoff and Kushner inclusion despite prior Iranian exclusion requests signals Washington is prioritising internal coalition management over Iranian comfort. Neither side entered Islamabad intending a breakthrough; both entered intending to demonstrate good faith without committing to it.

What could happen next?
  • Precedent

    The Islamabad format establishes that the US and Iran can conduct structured indirect communication after 47 years of no formal diplomatic channel — a floor, not a ceiling, for future contact.

  • Risk

    Pakistan Defence Minister Khawaja Asif's deleted post calling Israel 'a cancerous state' prompted Netanyahu's office to declare Pakistan cannot serve as a neutral arbiter, undermining the format's legitimacy before substantive exchanges begin.

First Reported In

Update #65 · Iran lost its own minefield

Al Jazeera· 11 Apr 2026
Read original
Different Perspectives
Indian refiners
Indian refiners
Indian refiners kept lifting discounted Urals as the India/Baltic price split widened past $9-10 a barrel, a gap that only grows as GL X1's Iranian wind-down cuts an alternative discounted grade off the market by 17 July. Cheaper Russian feedstock is being locked in while it lasts.
Chinese refiners
Chinese refiners
Chinese refiners gain leverage as the Urals-Brent discount widens, since Beijing's state buyers already source discounted Russian barrels near the fiscal floor unaffected by Western insurance costs. A wider discount, if it holds past 23 July, lets them lock in cheaper term contracts regardless of the cap's outcome.
US money managers (CFTC-tracked)
US money managers (CFTC-tracked)
Managed money trimmed WTI net length into the rally, positioning that reflects doubt the Hormuz premium survives without freight or war-risk confirmation. The Brent-WTI spread widening almost entirely on the Brent leg supports that scepticism about a broad-based repricing.
OPEC+ (Saudi-led subgroup)
OPEC+ (Saudi-led subgroup)
Saudi Arabia is defending market share through a fourth straight 188kbd August hike even as OPEC's own July MOMR cut 2026 demand growth for the fourth consecutive month. At a $108-111 fiscal breakeven, every added barrel costs Riyadh revenue it cannot recoup, so the hike reads as a positioning signal, not a demand bet.
Greek shipping registries
Greek shipping registries
Greece, backed by Cyprus and Malta, is pushing a three-month cap-freeze compromise against the Commission's freeze to January 2027 ahead of the 23 July vote. Athens' and Valletta's combined tanker registrations mean a shorter review gives their insurers more frequent chances to reprice risk on Russian cargoes.
Russia (Deputy PM Alexander Novak)
Russia (Deputy PM Alexander Novak)
Novak extended the diesel export restriction to producers on 8 July, the first producer-binding curb of the war, protecting the domestic pump price ahead of any refinery repair timeline. Urals still trades below Russia's $59 budget floor even as Brent gained, so the ban trades export revenue for fiscal stability at home.