U.S.–Iran Truce Wobbles With Hormuz Restrictions as Direct Talks Move to Pakistan

Overview

• A Pakistan-brokered two-week pause between the U.S. and Iran quickly frayed as Iran reported new attacks and Tehran and Islamabad insisted the deal covered Lebanon, a claim the U.S. and Israel rejected.
• The White House confirmed in-person negotiations in Islamabad led by Vice President J.D. Vance, with senior envoys joining to seek terms for a broader de‑escalation.
• Iranian outlets said forces were blocking many tankers in the Strait of Hormuz, while U.S. officials pointed to some increase in traffic, leaving shippers and insurers uncertain about safe passage.
• Oil prices, which fell on initial truce headlines, rebounded as doubts grew over the deal’s scope and staying power, and investors pulled back from risk as they watched Hormuz developments.
• Brazil moved to blunt costs with immediate fuel subsidies and a study to let workers use FGTS savings to cut debt, and exporters in Espírito Santo reported higher freight and insurance and are diverting coffee and pepper to other markets.