The high-stakes diplomacy that led to Pakistan hosting US-Iran peace talks

Pakistan’s leaders are setting up to host US-Iran peace discussions following its role in securing a two-week ceasefire. Ahead of the talks, Islamabad declared a two-day holiday to mark the occasion. While the event’s confirmation remains pending, the city has already mobilized around 10,000 security personnel, resulting in a noticeable decrease in public activity.

A critical moment for global stability

The Strait of Hormuz, a key oil transit route for 20% of global supply, is central to the world’s hopes for an end to hostilities. However, Pakistan’s own interests are equally at risk. If negotiations falter, the nation could face a “nightmare scenario” involving conflict with both Iran and its neighbors Afghanistan and India, warns Abdul Basit, a South Asia expert at Nanyang Technological University.

“Three of Pakistan’s borders could become battlegrounds,” Basit explains, highlighting ongoing tensions with Afghanistan and India. “With insurgencies already active in two provinces, the country cannot afford further strain.”

Pakistan’s strategic alliances

Pakistan’s unique role stems from its diplomatic leverage with the US, Iran, and Gulf states. The reconciliation efforts are spearheaded by military chief Asim Munir, whom US President Donald Trump refers to as his “favourite field marshal,” according to Mushahid Hussain Syed, a senator from the ruling Pakistan Muslim League party.

Munir, arguably Pakistan’s most influential figure, has strengthened ties with Trump since the latter’s second term. Maleeha Lodhi, a former Pakistan ambassador to the US and UN, notes that Munir provided Trump with “two early wins”: capturing the 2021 Kabul airport bombing mastermind and demonstrating support for his role in avoiding a wider India-US war.

“Trump needed this victory after the tariff wars drained his political momentum,” Lodhi adds. “Pakistan’s backing was a significant boost.”

Economic and technological ties

Pakistan has also deepened its relationship with Trump’s administration through economic partnerships. In September 2025, the Frontier Works Organisation, a military-backed mining entity, inked a $500m deal with a US firm. The ceremony at the Prime Minister’s House included Munir’s presence, signaling military endorsement.

Further, in January, Pakistan signed an agreement with World Liberty Financials, a cryptocurrency venture co-founded by Trump and his family. This deal could integrate a stablecoin into Pakistan’s digital payment system, enhancing economic collaboration.

Neutral stance amid regional tensions

Despite close ties with the US, Pakistan has maintained a balanced approach. It officially criticized the initial US-Israeli strikes on Iran but also condemned Iran’s attack on Saudi Arabia’s oil infrastructure. On 7 April, Islamabad abstained from a UN Security Council resolution calling for coordinated efforts to reopen the Strait of Hormuz, reflecting its cautious diplomacy.

This delicate balancing act underscores Pakistan’s role as a mediator, navigating its own challenges while aiming to stabilize global tensions.