Efforts led by Pakistan to broker peace between Iran and the United States have faltered. According to a report by The Wall Street Journal, Tehran has formally informed mediators that it will not attend proposed talks with American officials in Islamabad. Iranian officials have also rejected Washington’s conditions outright, calling them unacceptable. The refusal marks a significant setback for Islamabad, which had positioned itself as a neutral facilitator capable of bringing both sides to the table.Also read: Is Pakistan running out of strategic roomThe collapse of talks reflects not just diplomatic friction but a widening gap in expectations. Donald Trump has escalated rhetoric in recent days, warning that Iran could be bombed “back to the Stone Ages” if it refuses to agree to US terms. Such statements have hardened Tehran’s stance, making direct engagement politically and strategically difficult.WatchAs Iran War Jolts Pakistan's Economy, India Acts as Key Stabiliser for NeighboursPakistan’s own officials have acknowledged the impasse. Foreign Office spokesperson Tahir Andrabi admitted that “obstacles” were hindering progress, though he stopped short of detailing them. Despite this, Islamabad insists it will continue efforts to create conditions for “meaningful negotiations”.The country has maintained regular contact with Tehran, including a recent call between Iranian President Masoud Pezeshkian and Prime Minister Shehbaz Sharif, where both sides emphasised trust-building.However, the broader context of the conflict has made mediation increasingly complex. The war—triggered by US-Israeli strikes that reportedly killed Iran’s supreme leader Ali Khamenei—has spiralled into a multi-country crisis. Iranian missile and drone attacks have targeted several Gulf states, raising fears of a wider regional war. So far, countries like Saudi Arabia have shown restraint, but analysts warn that any retaliation could ignite a broader conflict involving multiple powers.Economic pressures are also compounding tensions. Iran’s restrictions on the Strait of Hormuz have disrupted global energy supplies, driving up oil prices and straining economies worldwide. While Iran recently allowed limited passage for Pakistani vessels, seen as a goodwill gesture, it has not translated into diplomatic progress.For Pakistan, the stakes are particularly high. Bound by a defence agreement with Saudi Arabia and already managing tensions with neighbouring India and instability along the Afghan border, Islamabad has little appetite for further escalation. Its mediation push was as much about preventing regional spillover as it was about securing peace.