Islamabad Round 2 Collapses: Trump Cancels Witkoff and Kushner's Trip as Araghchi Departs Pakistan Without Meeting US Envoys

The anticipated second round of US-Iran talks in Islamabad fell apart on April 25 when Iranian Foreign Minister Abbas Araghchi departed Pakistan without meeting the American delegation, and President Trump abruptly cancelled Steve Witkoff and Jared Kushner's 18-hour flight to Islamabad, declaring "We have all the cards." Araghchi headed to Muscat and Moscow to shore up Russian and Omani backing while Iran denied any direct talks were planned. The US simultaneously froze $344 million in Iranian cryptocurrency assets and sanctioned 40 shipping firms, raising the economic pressure even as the diplomatic track went cold.

April 25, 2026 — Day 57 of the Iran War — produced the sharpest diplomatic reversal since the first Islamabad round ended without agreement on April 12. Iranian Foreign Minister Abbas Araghchi had arrived in Islamabad on Friday, April 24, received at Nur Khan airbase by Pakistani Deputy Prime Minister Ishaq Dar and Army Chief Field Marshal Asim Munir. His visit was framed by Tehran as a bilateral consultation — preliminary meetings with Pakistan's mediation team, not a direct engagement with US officials. Iran's Foreign Ministry spokesperson Esmaeil Baghaei was explicit: "No meeting with US negotiators is planned in Pakistan." The statement landed hours before the White House confirmed that Witkoff and Kushner were preparing to depart for Islamabad. By Saturday morning, the contradiction was unresolvable. Araghchi held meetings with Prime Minister Shehbaz Sharif, Ishaq Dar, and Asim Munir — and then boarded a plane for Muscat. Senior Pakistani officials gathered at the airport to see him off, a formal courtesy that underscored how difficult the mediation effort had become. Araghchi's itinerary was deliberate: Muscat to discuss the Strait of Hormuz with Omani facilitators, Moscow to coordinate Iran's defence and strategic posture with Russia. The circuit reflected Tehran's determination to hedge across multiple power blocs — accumulating leverage before, or instead of, returning to the table with Washington. Back in Washington, Trump received word that Araghchi had left Pakistan before Witkoff and Kushner could board their flight. He went on Fox News and delivered a characteristically blunt verdict: "I've told my people a little while ago, they were getting ready to leave, and I said, 'Nope, you're not making an 18-hour flight to go there. We have all the cards. They can call us anytime they want, but you're not going to be making any more 18-hour flights to sit around talking about nothing.'" The trip was cancelled. Simultaneously, the US Treasury Department disclosed that it had frozen $344 million in cryptocurrency assets linked to Iranian entities and sanctioned a Chinese oil refinery and approximately 40 shipping firms it accused of transporting Iranian crude in violation of the blockade regime. Treasury Secretary Scott Bessent stated that oil sanctions extensions were "completely out of the question." The economic squeeze intensified on the same day the diplomatic channel went dark. In Tehran, President Masoud Pezeshkian appealed to Iranian citizens to reduce household electricity consumption, citing damage to Iran's energy infrastructure from US and Israeli military operations and the ongoing naval blockade on Iranian ports. The appeal signalled that the economic cost of the war was becoming visible to ordinary Iranians, not merely to government balance sheets. In Lebanon, Israeli forces killed over 15 Hezbollah militants across southern Lebanon, including fighters transporting weapons, as both sides continued violating the three-week ceasefire extension Trump had announced on April 23. The Lebanon front remained a slow bleed — serious enough to complicate any broader deal, not yet serious enough to trigger a full resumption of hostilities. Market reaction was mixed: Brent crude edged above $105 per barrel while US benchmark WTI fell 1.5% to $94.40 — a divergence reflecting uncertainty about whether the diplomatic breakdown was permanent or tactical. One source familiar with the situation suggested Araghchi could return to Pakistan early next week after completing his Muscat and Moscow stops, potentially reopening the channel. Whether that assessment proved correct would depend on what Russia and Oman told Tehran — and whether Trump's "we have all the cards" posture held when confronted with the ceasefire's next test point.