Hopes of return to diplomacy as US-Iran hold fire for third day

Core Impact Points

• The US has paused strikes on Iran for a third day, following a nearly two-week escalation sparked by Iran's firing at ships trying to transit the Strait of Hormuz.
• Mediators from Qatar and Pakistan are working to restart ceasefire talks, with officials expressing hope of progress in pulling the US and Iran back to the negotiation table.
• Iran has downplayed talk of negotiations, but US President Donald Trump claims Iran has requested a meeting and that the two sides are having 'good talks'.
• The Strait of Hormuz remains a major sticking point, with Iran insisting on a mandatory toll for vessels passing through the waterway, while Oman proposes a voluntary toll.
• The US has redirected 17 commercial vessels transiting the strait, disabled two others, and boarded two more to ensure compliance with its blockade on Iran.
• The situation remains fragile, with Iran-backed armed groups testing the new US approach, and the US increasing its stockpile of missile-interceptor stocks.