Hormuz deadlock: The $100-a-barrel standoff in Islamabad

The high-stakes peace talks in Islamabad have hit a critical wall over the world’s most vital oil artery: the Strait of Hormuz.

While a fragile two-week ceasefire holds, the core of the conflict has shifted from the battlefield to the negotiating table at the Serena Hotel.

The Core Conflict

Iran is demanding full sovereignty over the Strait, including a controversial proposal to charge a “toll” for safe passage.

The United States, led by Vice President JD Vance, has categorically rejected this, insisting the waterway remains international and free.

With nearly 20 million barrels of oil passing through the Strait daily, the deadlock has sent tremors through global energy markets.

The Players and the Stakes

The US Vice President JD Vance is holding a firm line, backed by President Trump’s “no cards” rhetoric.
Iran: Parliament Speaker Mohammad Bagher Ghalibaf is pushing a 10-point plan that includes total US military withdrawal and 45 years of sanctions relief.

The Mediator:

Pakistan’s PM Shehbaz Sharif has described these talks as “make or break” for global economic stability.

As expert committees continue closed-door sessions on nuclear and military details, the world watches the Strait.
A failure to resolve this “toll” dispute could reignite a conflict that has already caused the largest oil supply shock in history.

Meanwhile, two US Navy warships have transited the Strait of Hormuz at the start of an operation to clear the strategic waterway of mines laid by Iran, US Central Command said Saturday.

The announcement – which marks the first such transit since the US-Israeli war with Iran began – came shortly after President Trump said Washington had started “clearing out” the strait, through which a fifth of the world’s crude oil passes.