Iran has publicly rejected a proposed ceasefire agreement with the United States, shattering expectations that a deal could be signed as early as Tuesday.
The rejection comes after US officials and Pakistani mediators indicated the framework was ready for signature, marking a sudden diplomatic reversal.
In response to the breakdown, Qatari mediators are now stepping in to facilitate further talks.
The development follows a sharp escalation in regional tensions, with US Central Command confirming early Tuesday military strikes against targets in southern Iran.
The strikes were launched after the downing of a US aircraft, prompting a direct military response that has kept energy markets on high alert.
The collapse of the US-Pakistan mediated deal removes a near-term catalyst for de-escalation, leaving shipping lanes and crude supply routes exposed to further disruption. a prolonged period of geopolitical risk, with Brent crude and tanker freight rates likely to remain volatile until a new diplomatic framework emerges.