U.S. and Iran Engaged in Back-Channel Diplomacy via Pakistan Amid Rising Economic Risks

The geopolitical standoff between the United States and Iran has entered a complex new phase of back-channel mediation. Iranian Foreign Ministry spokesman Esmail Baghaei confirmed that Tehran is currently reviewing a concrete U.S. proposal delivered through Pakistani intermediaries. While President Trump has characterized negotiations as being in their 'final stages' and Vice President JD Vance noted diplomatic progress, the U.S. continues to pair these overtures with military pressure and high-level threats. However, the tone from Tehran remains wary. Chief negotiator Mohammad Bagher Ghalibaf publicly argued that the U.S. is using diplomacy as a cover for military objectives, claiming Washington seeks a 'new war' to force Iranian surrender. Iranian officials maintain that any breakthrough is contingent on the lifting of economic sanctions and a cessation of U.S. interceptions of Iranian vessels in regional waterways. Beyond the rhetoric, the crisis is causing significant global economic fallout. Despite a nominal ceasefire reported in early April, maritime traffic through the Strait of Hormuz—responsible for one-fifth of global oil and LNG shipments—remains restricted. The United Nations Food and Agriculture Organization (FAO) has warned that the continued disruption of fertilizer and fuel trade is pushing the world toward a systemic 'agrifood shock.' The economic strain is already manifesting in domestic instability abroad, with fuel-related protests reported in Kenya.