US-Iran Peace Talks Gain Momentum with Pakistan as Host; VP Vance Tapped as Lead Negotiator, Oil Drops Below $100

US-Iran Peace Talks Gain Momentum with Pakistan as Host; VP Vance Tapped as Lead Negotiator, Oil Drops Below $100

N
News Editor 01
2026-07-22 14:10:13
Pakistan brokers US-Iran peace talks in Islamabad, with VP JD Vance reportedly chosen as US chief negotiator. Trump issued a 5-day ultimatum over the Strait of Hormuz, but the diplomatic progress pushed oil prices below $100/barrel.
geopoliticsUS-Iranoil pricesPakistanTrump

Pakistan is actively mediating potential peace negotiations between the United States and Iran, offering its capital Islamabad as the venue. According to The Guardian, Pakistani Prime Minister Shehbaz Sharif said the country is ready to facilitate "meaningful and decisive talks" to end nearly a month of Middle East conflict. The White House confirmed that Pakistan's Army Chief Asim Munir spoke with President Donald Trump on Sunday about the situation.

VP Vance Tapped as Lead US Negotiator

Pakistani sources indicate that if talks proceed, US Vice President JD Vance could be appointed as the lead US negotiator. Earlier attempts by Trump's Middle East envoy Steve Witkoff and son-in-law Jared Kushner failed to gain Iranian trust. Iranian diplomatic sources explicitly rejected engaging with those two, calling Vance a more acceptable counterpart for dialogue.

Trump Issues 5-Day Ultimatum; Oil Prices Slide Below $100

Despite the diplomatic window, Trump has not eased pressure on Iran. Over the weekend he issued a five-day ultimatum, warning that if Iran does not reopen the strategic Strait of Hormuz, the US will "completely destroy" Iran's power plants and energy infrastructure. Concurrently, Trump claimed that officials from both sides are engaged in "very strong dialogue" and have reached agreement on most points. The positive talk signals calmed market fears, driving international crude oil prices sharply lower, falling below $100 per barrel to a fresh recent low.

Pakistan Pursues Hosting Role with Stakes of Its Own

While Qatar, Turkey and Egypt are also considered potential venues, sources say Tehran prefers Islamabad. Pakistan maintains close ties with both the Trump administration and Gulf states, and is home to the world's second-largest Shia Muslim population after Iran. The country heavily depends on oil and gas imports passing through the Strait of Hormuz; the conflict has already caused severe energy shortages and price spikes. Hence, Pakistan is eager to mediate to ease domestic economic strain.

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