Hope for a broader Middle East de-escalation is growing after new signs of movement in talks between the United States and Iran. At the same time, Israeli leaders are discussing a possible ceasefire in Lebanon, where fighting with Iran-backed Hezbollah has dragged on for weeks. Reuters reported that US President Donald Trump said talks between leaders in Lebanon and Israel were expected on Thursday.

The latest diplomatic push comes after earlier negotiations failed to secure a breakthrough. One of the biggest sticking points has been Lebanon’s role in the wider conflict, alongside long-running disputes over Iran’s nuclear programme. Reuters reported that Pakistan has again stepped into a key mediation role, with Field Marshal Asim Munir arriving in Tehran to help narrow the gap between Washington and Tehran.

Pakistan Returns to the Centre of Negotiations

The White House said the conversations have been “productive and ongoing”. Press secretary Karoline Leavitt said officials felt positive about the chances of a deal, although no fresh in-person talks had yet been confirmed. Reuters also reported that more talks could happen in Pakistan as early as this coming weekend.

Iranian foreign minister Abbas Araqchi also signalled support for diplomacy, saying Tehran remained committed to promoting peace and stability in the region. That matters because the conflict has already killed thousands of people, mainly in Iran and Lebanon, and has shaken global energy markets.

Oil Route Fears Keep Global Markets on Edge

A big part of the urgency is the Strait of Hormuz, one of the world’s most important shipping routes for crude oil and gas. Reuters reported that the war has sharply disrupted movement through the strait, cutting Gulf exports and forcing energy importers to look elsewhere. Investors have reacted strongly, with oil prices and global markets watching every new sign of progress or collapse.

The US has also increased pressure on Iran’s oil trade. Treasury secretary Scott Bessent said Chinese purchases of Iranian oil could pause and warned of possible secondary sanctions.

Nuclear Dispute Still Stands in the Way

Despite the renewed optimism, major differences remain. Reuters reported that Washington proposed a 20-year suspension of Iranian nuclear activity, while Tehran suggested a shorter halt of three to five years. The US also wants enriched nuclear material removed from Iran, while Tehran wants international sanctions lifted.