The United States says it is optimistic about reaching a peace agreement with Iran as discussions continue over a possible second round of talks.

White House Press Secretary Karoline Leavitt said further negotiations are likely to take place in Pakistan, adding that Washington “feels good about the prospects of a deal.”

The renewed diplomatic push follows earlier talks led by JD Vance, with the U.S. offering what officials described as a “grand bargain” aimed at ending the ongoing conflict and addressing Iran’s nuclear programme.

Pakistan has played a key mediating role, with Prime Minister Shehbaz Sharif engaging regional leaders, including Saudi Crown Prince Mohammed bin Salman, to support negotiations.

Meanwhile, tensions remain high as Iran warns it could disrupt major shipping routes, including the Red Sea and the Strait of Hormuz, if the U.S. does not lift its naval blockade on Iranian ports.

Benjamin Netanyahu said Israel and the U.S. share the same objectives, including curbing Iran’s nuclear capabilities and reopening critical oil routes.

Despite the threats, global markets have reacted positively to signs of a possible deal, with stock prices rising and crude oil prices easing.

Talks are expected to resume soon as both sides weigh diplomatic options against ongoing military and economic pressure.