The Strait of Hormuz shipping crisis deepened on Monday after US-Iran talks in Islamabad ended without an agreement, extending uncertainty around one of the world’s most important energy routes. Vice President JD Vance said the talks ended after 21 hours when Iran rejected US terms tied to its nuclear programme.

The failure of the talks has kept oil traders, shippers and governments focused on the narrow waterway, where traffic remains far below normal levels despite a ceasefire announced on 8 April 2026. Recent market moves show how quickly the Strait of Hormuz shipping crisis can ripple through fuel prices and global trade.

Talks fail as Hormuz disruption continues

Vance said the US wanted a firm commitment that Iran would not pursue nuclear weapons, but no deal was reached in Islamabad. According to AP, the negotiations ended early on Sunday, 12 April 2026, after roughly 21 hours. Your source article also reported that the unresolved issues included the Strait of Hormuz, a point echoed by Iranian Foreign Ministry spokesman Esmaeil Baqaei.

That breakdown matters because the Strait of Hormuz shipping crisis has not eased in practice. Bloomberg and Al Jazeera both reported in recent days that maritime traffic through the chokepoint remained heavily restricted even after the ceasefire took effect on 8 April. Before the conflict, the route handled roughly a fifth of global oil and liquefied natural gas flows.

Oil markets remain sensitive to every development

Oil prices have reacted sharply to each turn in the crisis. AP reported on 13 April that Brent had recently spiked above $119 a barrel, while Monday trading showed continued volatility as markets assessed the risk of further disruption. That means any delay in restoring normal shipping through Hormuz could keep pressure on fuel costs well beyond the Gulf.

The source article said the US has also tried to cushion the shock by tapping its Strategic Petroleum Reserve. Reuters-carried reporting said the Department of Energy loaned 8.48 million barrels in a second batch announced on 10 April, adding to a broader emergency release programme.

Responses and next steps

Iran has signalled that diplomacy is not over, even though the Islamabad round failed. Baqaei said the two sides found common ground on some issues but still disagreed on several major matters, including Hormuz-related questions. Meanwhile, President Donald Trump said the US would move ahead with stronger action around Iranian shipping, raising fears that the Strait of Hormuz shipping crisis could worsen before it improves.