US, Iran end Islamabad talks without deal; Bitcoin drops

U.S. and Iranian delegations concluded a 21-hour round of talks in Islamabad without reaching an agreement. The session produced competing accounts from each side about why negotiations stalled.

Vice President JD Vance, who led the U.S. team, told a briefing that Washington presented a “final and best offer” and had been flexible in talks. He said the United States sought “an affirmative commitment that they will not seek a nuclear weapon, and they will not seek the tools that would enable them to quickly achieve a nuclear weapon.” Vance added the U.S. delegation left with a single proposal and would wait to see whether Iran accepts it.

Iranian negotiators described U.S. expectations as unreasonable and said those demands prevented progress. A source close to Iran's negotiating team said Tehran had no plans for another round of talks. Pakistan's foreign minister asked both parties to uphold the fragile two-week ceasefire that preceded the meetings.

Cryptocurrency markets reacted to the diplomatic deadlock. Bitcoin, which had climbed toward $74,000 on Saturday, fell to an intraday low near $71,168 during early Asian trading and was trading around $71,716 at the time of the briefing, off roughly 1.8% over 24 hours. The broader crypto market capitalization declined about 1.7%. Ethereum traded near $2,220 and XRP near $1.33, each down about 2%.

Regional security developments were cited by investors. Iran announced plans to levy crypto-based tolls on ships transiting the Strait of Hormuz. U.S. officials reported Tehran had not located all mines in the strait. U.S. Central Command said two Navy destroyers transited the waterway to begin mine-clearing operations; Iranian officials rejected the U.S. account. The U.S. president said the United States had begun the process of clearing mines from the strait.

Other regional military activity continued while diplomacy paused. Israeli forces carried out airstrikes in Lebanon, and negotiators described the ceasefire as fragile. Control of the Strait of Hormuz and questions about Iran's nuclear program remained unresolved at the end of the Islamabad talks.