Oil Markets Face Renewed Volatility as Islamabad Talks Fail

April 12, 2026 — Oil Markets Face Renewed Volatility as Islamabad Talks Fail.

Historic Negotiations End Without Agreement

After 21 hours of marathon negotiations at Islamabad's Serena Hotel — the highest-level face-to-face engagement between the U.S. and Iran since 1979 — Vice President JD Vance announced that Iran had 'chosen not to accept our terms.' The core impasse centered on Iran's nuclear program, with the U.S. demanding an 'affirmative commitment' to end enrichment, and Tehran insisting on its sovereign right to nuclear technology. Pakistan's PM Sharif urged both sides to continue diplomacy despite the breakdown.