US Iran War Highlights: Iran has limited leverage and must pursue negotiations, says Trump ahead of talks in Pakistan

Wall Street traders, closely watching upcoming US-Iran talks, kept stocks volatile as rising oil prices reflected uncertainty over the direction of a fragile ceasefire, as per Bloomberg.

Gains in equities quickly lost momentum after reports suggested President Donald Trump is preparing military options if negotiations in Pakistan this weekend fail, while US crude climbed to around $99 a barrel.

Ahead of Islamabad talks, Donald Trump took to Truth Social and said that Iran appears to lack leverage beyond temporarily pressuring the world through control of key international waterways, adding that its only viable option is to come to the negotiating table.

He said, "The Iranians don’t seem to realize they have no cards, other than a short term extortion of the World by using International Waterways. The only reason they are alive today is to negotiate."

Pope Leo XIV pushed back against the Trump administration’s claim that God supports the United States in its conflict with Iran, marking the latest in a series of criticisms, even as both the Vatican and the White House denied any tensions following reports of a contentious meeting in January, as per Bloomberg.

“God does not bless any conflict,” the pontiff wrote in a Friday post on X. “Anyone who is a disciple of Christ, the Prince of Peace, is never on the side of those who once wielded the sword and today drop bombs. Military action will not create space for freedom or times of #Peace.”

Iran's forensic chief told state media lately that more than 3,000 people were killed in the days the war went on between US, Israel-Iran.

US-based rights group HRANA said 3,636 people have been killed since the war erupted. It said 1,701 of those were civilians, including at least 254 children.

Iran-backed Hezbollah launched around 30 projectiles from Lebanon into Israel on Friday, the Israeli military said, stating that some strikes caused damage, reported AFP.

Iran’s Foreign Minister Abbas Araghchi said on Friday that the United States must honor its commitments by ensuring Lebanon is included in the ceasefire and by stopping Israeli strikes on Lebanese territory, according to state media.

Vice President JD Vance on Friday cautioned Iran not to “play” the US as he headed for negotiations focussed on resolving the conflict.

As per AP, he cited Trump in saying, “If the Iranians are willing to negotiate in good faith, we’re certainly willing to extend the open hand.” But he added, “If they’re gonna try and play us, then they’re gonna find that the negotiating team is not that receptive.”

Iran’s Parliament Speaker Mohammad Baqer Qalibaf said on Friday that two previously agreed steps, a ceasefire in Lebanon and the release of Iran’s frozen assets, must be carried out before any negotiations can begin, as per Reuters.

In a post on X, Qalibaf stated that these measures were part of prior commitments between the parties and cautioned that talks should not proceed until they are implemented, as disagreements over ceasefire terms persist and fighting continues in Lebanon.

“The State of Israel will not remain silent in the face of those who attack us. Spain has slandered our heroes, the soldiers of the IDF, the soldiers of the most moral army in the world,” Netanyahi said.

He added, “...therefore I have instructed to expel Spain's representatives from the coordination center in Kiryat Gat, after Spain has chosen time and again to stand against Israel.”

“Whoever attacks the State of Israel instead of the terrorist regimes, whoever does so, will not be our partner regarding the future of the region,” he said.

“I am not prepared to tolerate this hypocrisy and this hostility. I do not intend to allow any country to wage a political war against us without paying an immediate price for it,” he added.

Prime Minister Benjamin Netanyahu said in a latest statement, “Israel will not remain silent in the face of those who attack us. Spain has defamed our heroes, the soldiers of the IDF, the soldiers of the most moral army in the world."

As he departs for Islamabad, Pakistan, Vice President of the United States, JD Vance says, "We're looking forward to the negotiation. I think it's going to be positive. As the President of the United States said, if the Iranians are willing to negotiate in good faith, we're certainly willing to extend the open hand. If they're going to try to play us, then they're going to find that the negotiating team is not that receptive. We're going to try to have a positive negotiation. The President has given us some pretty clear guidelines, and we're going to see..."

Vice President JD Vance departs for Islamabad, Pakistan: "As US President Donald Trump said, if the Iranians are willing to negotiate in good faith, we're certainly willing to extend the open hand. If they're going to try to play us, then they're going to find that the negotiating team is not that receptive."

Lebanon’s National News Agency (NNA) reported that an Israeli air strike targeting a carwash in the town of Jba’a, located in the Iqlim al-Tuffah region of the Nabatieh governorate, has killed six people.

According to the NNA, the victims include the owner of the carwash, his two sons and three other people who were at the scene when the strike hit.

Visuals from outside the Serena Hotel in Islamabad, where the US and Iranian delegations are expected to meet for a meeting, which comes in the immediate aftermath of a fragile ceasefire in West Asia: Reuters

A Pakistan official posted in X, "On media queries regarding Pakistan’s decision to allow visa-free travel for Islamabad Talks 2026, kindly note the following official statement:

Pakistan has extended visa-free travel to delegates and journalists from participating nations of Islamabad Talks 2026, i.e., Iran and the USA. This facility, extended for the duration of the talks, does not cover third-country nationals."

A fragile ceasefire between the US and Iran showed further strain, a day before they are expected to negotiate in Pakistan. Washington accused Tehran of breaching promises on the Strait of Hormuz and Israel struck Lebanon with attacks that Iran says violate the truce, Reuters reported.

A senior Iranian lawmaker said Mojtaba Khamenei set a condition that parliament speaker Mohammad Bagher Ghalibaf must lead negotiations with the US.

Mahmoud Nabavian, Deputy Parliament Speaker, was quoted by Iran International as saying on Friday: “Our conditions were conveyed to the Pakistani side… and they said Trump accepted them,” adding that a ceasefire and talks were decided by Iran’s leadership.

According to Al Jazeera, the Lebanese armed group says its fighters targeted the Kiryat Shmona settlement in northern Israel with a squadron of attack drones on Friday.

The group also announced that missiles were continuing to target the settlements of Metula, Margaliot and Misgav Am.

US Trade Representative Jamieson Greer said on Friday that the United States is trying to have a stable relationship with China, but if Beijing is going to be involved with Iran in a way that goes against US interests, that would complicate matters.

In an interview on CNBC, Greer said he expected President Donald Trump to have a good meeting next month with Chinese President Xi Jinping but not every challenge with China is resolved.

Iran’s proposed 10-point plan has been agreed as the basis for negotiations, Deputy Foreign Minister Majdi Takht Ravanchi said on Friday, according to Iran International.

“We have always welcomed diplomacy, but not talks based on false information aimed at deception,” he said, adding Tehran does not support a ceasefire that would allow an adversary to rearm and resume attacks.