Although President Donald Trump said that the proposals from Tehran would be a basis for negotiations, they remain deeply divided over key issues. Both sides are sticking to their competing demands to end the war. The fate of shipping through the Strait of Hormuz, and Israel's conflict in Lebanon are key issues.

The Middle East could be shaped for generations by the progress of the talks.

Where do both sides stand?

A delegation from Iran is expected to arrive at Islamabad for talks, based on a 10-point plan. This proposal shows little overlap with the 15-point Washington plan, indicating that there are major gaps to be bridged.

Iran's proposal, for example, includes a request to enrich uranium. This was previously rejected by Washington and Trump insisted that it is not negotiable. The 10 points do not also address Iran's nuclear and missile capabilities that Israel and the U.S. both say must be drastically curtailed.

Tehran's formidable missile arsenal has been declared non-negotiable. However, it is not known how many weapons will remain after the war.

A Pakistani official said that Iran would be able to meet many of its requests, with a focus on reparations, reconstruction and sanctions relief. However, it could not expect an agreement to be reached on uranium enrichment.

WHAT WILL TOP THE AGENDA OF THE ISLAMABAD TALKS?

Prior talks focused on Iran’s nuclear programme and missiles. These issues are now overshadowed because of the Strait of Hormuz. This is a chokepoint that carries a fifth of all the oil and gas in the world. The global economy has been shaken by the effective closing of the waterway in Iran since the beginning of the conflict on February 28. Oil prices have risen.

Tehran has said that it will seek to charge ships transiting the narrowest part of the Strait between Iran and Oman, which measures just 34 km wide (21 miles).

Trump had threatened devastation if Tehran refused to agree to a ceasefire agreement and reopening the strait.

Tehran has said that there will be no deal if Israel continues to strike Lebanon. There is no sign that Iran has lifted its blockade on the waterway.

How do IRAN'S 10 POINT and U.S.15-POINT PLANS compare? Iran's Supreme National Security Council stated in a press release that Washington agreed to accept Iran’s 10-point plan, and that the United States had "in principle" committed to: non-aggression, continued Iranian control of the Strait of Hormuz, acceptance of enrichment, lifting of all primary and secondary sanction, termination of all U.N. Security Council resolutions and Board of Governors of International Atomic Energy Agency, withdrawal of U.S. Combat Forces from the region, and cessation of warfare on According to Israeli sources Trump's 15 point proposal, sent via Pakistan to Iran, included removing Iran’s highly enriched nuclear uranium stocks, stopping enrichment, curtailing its ballistic missile program, and cutting funding to regional allies.

Trump has warned that if Iran does not comply with his demands, he will escalate the fighting.

What are the?Chances of Reaching a Lasting Settlement?

Trump may have declared victory but Washington has not achieved the goals he set out to justify the war: to destroy Iran's nuclear programme, eliminate its ability to attack neighbours and create conditions to make it easier for Iranians?topple their government.

Iran has said it will not make any major concessions and that it is willing to fight patiently, as the Strait of Hormuz gives it an economic advantage over an opponent with superior firepower.

ISRAEL’S POINT OF VIEW AND LEBANON’S PLACE?

Israel, which is pounding Iran’s Hezbollah ally in Lebanon as part of a parallel war, views Tehran as an existential danger.

Benjamin Netanyahu, the Israeli prime minister, wants to see a regime change in Iran. However this would require troops on the ground. There are also no guarantees that there will be stability afterward.

Question of whether ceasefire includes Israel's war with Hezbollah is a point of contention that has threatened the truce.

The U.S., Israel and Iran say that Lebanon is not part of the deal. However, Iranian President Masoud Pesshkian said that a ceasefire in Lebanon was a condition for Tehran's agreement with Washington.

Israel announced that it had reached a deal with Iran on a ceasefire, but added that the agreement did not include an end to military actions in Lebanon.

(source: Reuters)