US-Iran Peace Talks Hit A Crucial Test Over ‘America First’ Stance

• Ending Israeli operations in Lebanon and unfreezing Iranian assets frozen since 1979 are two important themes in Islamabad's US-Iran peace negotiations.
• Iran advocated for a change in US strategic goals for discussions, emphasizing “America First” above “Israel First.”
• Pakistan mediated, with PM Shehbaz Sharif calling negotiations “make-or-break” as the indirect-to-direct conversation progressed.

US-Iran negotiations in Islamabad face an indispensable test as Iran has asked for an "America First" approach, amidst disagreements over sanctions relief and Lebanon strife.

The "Islamabad Talks" are dominated by two topics, according to those familiar with the discussions. First, while Israeli military activities in southern Lebanon continue, Iran wants to stop them. 

Second, there are signs that the US may think about partially unfreezing billions of dollars in Iranian cash that have been held overseas since 1979. Tehran is also demanding the release of these funds, according to Al Jazeera.

Iran Wants ‘America First’ Policies

According to Iran's first Vice President, the success of the discussions relies entirely on the objectives of the United States. He emphasized that a deal is likely to be reached if authorities prioritize "America First" over "Israel First." The "America First" policy is a U.S. governance strategy that seeks to prioritize American national interests and economic self-sufficiency above global concerns.

Due to the break in communication between the US and Iran, Pakistan has stepped up to mediate terms between the two warring nations, with US Vice President JD Vance landing in Islamabad on Saturday to meet Iranian diplomats for a potential ceasefire deal.

Pakistani Prime Minister Shehbaz Sharif has described the talks as “make-or-break,” warning that failure could trigger another round of hostilities. However, so far, negotiations have been bilateral, with Islamabad serving as a messenger between the two sides. Reports also state that Pakistan is looking to facilitate a direct conversation between the US and Iran.

While Lebanon continues to be an issue for mitigation, Israeli forces reportedly continue to kill civilians and emergency personnel, including a paramedic and a member of the Lebanese Civil Defense, in the towns of Kfar Sir, Zefta, and Toul across the Nabatieh area.

Trump Vouches For ‘Best And Sweet Oil’

US President Donald Trump amid these peace talks, posted on Truth Social that he was confident in the country's energy strength despite the current geopolitical concerns. He asserted in a recent post that "huge numbers of completely empty oil tankers" were on their way to the US to load what he called the "best and sweetest oil (and gas!) anywhere in the world." 

He also said that the US has more oil than the next two major oil-producing countries combined and stressed a "quick turnaround," hinting at how important energy security is to Washington as tensions in the region persist.

Oil ETFs ended Friday mostly lower on Friday, reflecting some softness in crude prices through the session. The United States Oil Fund (USO) closed down about 1.69%, while United States Brent Oil Fund (BNO) also declined, ending down roughly 2.62%, showing weakness in Brent-linked exposure. Additionally, Invesco DB Oil Fund (DBO) was the outlier, edging slightly higher by about 0.20% on Friday.

Read also: Ark Invest’s Cathie Wood Says Tie-Up With Kalshi Hinges On ‘Wisdom of the Crowds’

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