The Strait of Hormuz has emerged as a major sticking point in the ongoing Iran-US ceasefire talks in Islamabad, with negotiations continuing despite “serious disagreements”, Iran’s semi-official Tasnim news agency reported on Saturday.

A third round of talks is expected later tonight, according to Iranian state television, as both sides attempt to bridge gaps after the first round ended without a breakthrough.

US and Iranian negotiators held their highest-level talks in decades in Pakistan on Saturday, seeking to stabilise a fragile two-week ceasefire after six weeks of conflict.

The Strait of Hormuz — a key route for about 20% of global oil and LNG shipments — remains central to negotiations. While US President Donald Trump said American forces had begun clearing mines and reopening the waterway, Iran disputed the claim and denied any US naval transit through the strait.

The US military said two warships passed through the strait and preparations for mine-clearing operations were underway. Iranian state media, however, said Tehran had forced a US vessel attempting to cross to turn back.

US Vice President JD Vance, special envoy Steve Witkoff and Jared Kushner met Iranian Parliament Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araghchi for about two hours, reports claimed. The meeting came amid rising tensions over competing demands. Iran is seeking:

Washington, meanwhile, is pushing for reopening the strait and restrictions on Iran’s nuclear programme.

Iran has entered negotiations with “deep distrust”, warning it would negotiate “with our finger on the trigger”, government spokesperson Fatemeh Mohajerani said.

Earlier, both delegations also held separate meetings with Pakistani leadership, where Tehran presented its red lines, including reopening the Strait of Hormuz on its terms and compensation for war damage.

The talks got off to a tense start following a dispute over frozen Iranian funds. Iranian sources told Reuters that the US agreed to release billions in assets held abroad, but US officials denied the claim.

The competing proposals — Iran’s 10-point plan and Washington’s 15-point framework — underscore the distance between both sides.

The negotiations were further complicated by continued Israeli strikes in Lebanon. More than 90 people were reported killed in Israeli airstrikes on Saturday, pushing the death toll in Lebanon to over 2,000.

Iran has insisted that any ceasefire must extend to Lebanon, while the US and Israel maintain that the Hezbollah conflict is separate.

The conflict has disrupted global energy supplies, with oil prices surging and shipping traffic through the Strait of Hormuz sharply reduced. Only a handful of vessels have passed through since the ceasefire began.

Despite tensions, three supertankers reportedly transited the strait on Saturday, raising cautious hopes of a gradual reopening.

(With inputs from AP, Reuters)