The U.S., Iran, and Pakistan are scheduled to meet for peace talks, with Pakistan mediating. However, the two sides remain deeply divided over key issues despite President Donald Trump's claim that Tehran's proposals were "a basis" for negotiations. Both sides are sticking to their competing demands to reach a peace deal. The fate of shipping through the Strait of Hormuz, and Israel's conflict in Lebanon remain key issues.

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

Who will attend?

The 'Iranian' side is expected to have the discussions handled by the Parliament Speaker Mohammed Baqer Qalibaf and the new Secretary of the Supreme National Security Council Mohmamad Baqer Zölqadr.

Vice President J.D. Vance, White House Middle East Envoy Steve Witkoff, and Jared Kushner's father-in-law President Donald Trump are expected to be part of the team.

Kushner, Witkoff and others conducted negotiations about Iran's nuclear program that were in progress when Israel and the U.S. launched the surprise attack that started the war on 28 February.

Where do both sides stand?

The Iranian delegation presented a 10-point plan, which showed little overlap with the 15-point Washington plan previously presented, indicating that there would be major gaps to fill.

Iran's proposal, for example, includes a request to enrich uranium. This was previously ruled out by Washington and Trump insisted that it is non-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 an emphasis on reconstruction, reparations, and sanctions relief. However, it could not expect a?agreement regarding uranium enrichment.

WHAT WILL TOP THE AGENDA OF THE ISLAMABAD TALKS?

Prior talks focused on Iran’s nuclear program and missiles. These issues are now overshadowed because of the Strait of Hormuz. This is a chokepoint where around a 5th of the world’s oil and gas (usually liquefied) flows.

The global economy has been shook by the effective closing of Iran's waterway, since the start of the war in February. Oil prices have risen.

Tehran has said that it will charge a fee to ships transiting the narrowest part of the Strait between Iran and Oman, which measures just 34 km.

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 agreement as long as Israel continues to strike Lebanon.

How do the US 15-point plan and Iran's 10-point plan 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, commited to”: non-aggression, continued Iranian control of the Strait of Hormuz, acceptance of enrichment, lifting of all primary and secondary sanction, termination of all resolutions passed by U.N. Security Council, Board of Governors of International Atomic Energy Agency, withdrawal of U.S. Combat Forces from the region, and

According to Israeli sources Trump's 15 point proposal, sent via Pakistan to Iran, included removing Iran’s stock of highly enriched?uranium and halting enrichment. It also called for curbing the ballistic missile program, as well as 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 settling a dispute that will last?

Trump may have declared victory but Washington has not achieved the goals he set out to justify the war: eliminating Iran's ability to attack its neighbors, destroying its nuclear program and creating conditions to make it easier for Iranians topple their governments.

Iran has said it will not make any major concessions on these points, and that it is prepared to continue fighting. The Strait of Hormuz gives it an economic advantage over an enemy with superior weapons.

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

Israel sees Tehran, which is waging a parallel conflict with Iran's Hezbollah ally in Lebanon, as an existential danger.

Benjamin Netanyahu, the Israeli prime minister, wants regime change in Iran. However this would require boots on ground and there are no guarantees that stability would follow.

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 to cease all military activity in Lebanon, but did not stop the action. (Written by Michael Georgy, with additional writing by Angus McDowall. Edited by Sharon Singleton.)

(source: Reuters)