US President Donald Trump has cancelled a planned diplomatic mission by his envoys to Pakistan, where talks were expected to explore pathways to ease tensions with Iran, amid growing uncertainty over the fragile geopolitical balance in the Middle East.
The development comes as tension around the Strait of Hormuz continues to rattle energy markets, with analysts warning that supply risks remain elevated and any disruption to shipping lanes could quickly tighten global crude flows.
Trump confirmed the cancellation in remarks to Fox News, saying: “We have all the cards. They can call us anytime they want, but you’re not going to be making any more 18-hour flights to sit around talking about nothing.”
He also downplayed fears of immediate escalation, stating: “No. It doesn’t mean that. We haven’t thought about it yet,” when asked whether the decision signalled a return to hostilities.
Before the cancellation, the White House had said envoys Steve Witkoff and Jared Kushner were en route to Islamabad for what was described as an “in-person conversation” aimed at advancing diplomatic engagement with Iran.
In Islamabad, Iranian Foreign Minister Abbas Araghchi had already concluded meetings with Pakistan’s leadership, describing the discussions as “very fruitful,” while noting that Tehran had presented a “workable framework to permanently end the war.”
He added: “Have yet to see if the US is truly serious about diplomacy,” reflecting continued mistrust between both sides despite ongoing mediation efforts.
Araghchi is expected to continue consultations in Oman and later Russia as Iran intensifies diplomatic outreach amid rising regional tensions and competing security interests.
Military-linked Iranian statements have maintained that control over strategic maritime routes remains central to Tehran’s deterrence posture, warning that any prolonged restrictions would not go unanswered.
European officials have urged immediate reopening of the Strait of Hormuz, stressing that “this is vital for the entire world,” given its role in global energy supply chains.
Market watchers say oil prices are now highly sensitive to any further escalation, with expectations that crude could spike as early as Monday morning if trading resumes with heightened risk premiums already priced in.
With diplomatic channels unsettled and regional actors holding firm positions, attention has now moved to see if backchannel negotiations can still prevent a deeper escalation that could spill further into global energy markets.