Islamabad, 12 April

The US and Iran failed to reach a peace deal at their historic 21-hour talks in Pakistan to end the West Asia conflict with US Vice President JD Vance on Sunday citing Tehran not forgoing its nuclear programme as one of the key sticking points.

The failure to arrive at an agreement following the face-to-face negotiations between the two sides raised doubts over the effectiveness of their fragile two-week ceasefire as well as the prospect of reopening of the Strait of Hormuz to stabilise the global energy market.

"We have been at it now for 21 hours. We've had a number of substantive discussions with the Iranians, that's the good news," Vance, who led the US delegation at the talks in Islamabad, said at a press conference.

"The bad news is that we have not reached an agreement and I think that's bad news for Iran much more than it's bad news for the United States of America."

The US Vice President said the American side presented its"final and best offer" to the Iranian side but it did not accept it.

"We just could not get to a situation where the Iranians would accept our terms," he said.

To a question on Iran's nuclear programme, Vance said the US President Donald Trump's "core goal" is to stop Iran from having nuclear weapons.

"The simple fact is that we need to see an affirmative commitment that they will not seek a nuclear weapon and they will not seek the tools that will enable them to quickly achieve a nuclear weapon," he asserted.

"We leave here with a very simple proposal, a method of understanding that this is our final and best offer. We'll see if the Iranians accept it," Vance said.

The Iranian foreign ministry said the success of the "diplomatic process depends on the seriousness and goodwill of the other side, and refraining from excessive and illegal demands"

US special envoy to West Asia Steve Witkoff and Trump's son-in-law and White House advisor Jared Kushner were also part of the US team.

The Pakistan-brokered negotiations began Saturday, four days after the two sides announced a six-day ceasefire.

It was the first direct, high-level engagement between Iran and the US since the 1979 Islamic Revolution.

Vance said the negotiating team was in touch with President Trump and other top US officials.

Iran had laid out a 10-point plan for the talks that included demands for the withdrawal of US forces from West Asia, the lifting of sanctions against Iran, and allowing it to control the Strait of Hormuz.

Pakistan led the diplomatic push to bring the two sides to the table, which became possible after an appeal by Prime Minister Sharif earlier this week, leading to a pause in the fighting.

The conflict began after the US and Israel launched attacks on Iran on February 28, paralysing global energy markets and disrupting trade.

The negotiations were closely watched globally, for their likely far-reaching implications for West Asia's security, global energy markets, and international diplomacy.