Work has not halted to bridge gaps between the United States and Iran, sources from mediator Pakistan said, despite the failure of ​face-to-face diplomacy after Donald Trump called off a trip by his envoys and told Iran to phone when it wants a deal.

Hopes of reviving peace efforts have ‌receded since the US president scrapped a visit on Saturday by his envoys Steve Witkoff and Jared Kushner to Islamabad, where Iranian Foreign Minister Abbas Araqchi shuttled in and out twice over the weekend.

Araqchi, who also visited Oman, arrived on Monday in Russia to meet President Vladimir Putin, a longstanding ally.

With the warring sides still seemingly far apart on issues including Iran’s nuclear ambitions and access through the crucial Strait of Hormuz, oil prices resumed their ​upward march when trade reopened on Monday.

Brent crude was up around 2.5% at around $108 a barrel.

Talks taking place remotely

In a sign that no face-to-face meetings are planned ​any time soon, streets reopened in Islamabad, which had been locked down for a week in anticipation of talks that never took place.

Pakistani officials said negotiations were still taking place remotely, but there were no plans to convene a meeting in person until the sides were close enough to sign a memorandum.

“The draft will be negotiated remotely till they reach some consensus,” said a Pakistani source familiar with the negotiations.

Although a ceasefire has paused the US-Israeli strikes on Iran that began on February 28, no agreement has been ​reached on terms to end a war that has killed thousands, driven up oil prices, fuelled inflation, and darkened the outlook for global growth.

Both sides could be settling in for a test of ​wills to see who can endure economic pain before making concessions.

Iran has largely blocked all shipping apart from its own from the Gulf through the Strait of Hormuz since the war began.

This month, the United States ‌began blockading ⁠Iranian ships, which Iran says must be halted as a condition for talks.

Trump faces domestic pressure

After Araqchi’s first weekend visit to Islamabad, a Pakistani official said he had delivered a new Iranian proposal and criticism of the US proposal, without providing details.

News site Axios reported that the Iranian proposal would discuss ending the war and reopening the Strait as first steps, while leaving nuclear negotiations for a later stage.

With his approval ratings falling, Trump faces domestic pressure to end the unpopular war.

Iran’s leaders, though weakened militarily, have found leverage in negotiations with their ability to stop shipping in the ​strait, which normally carries a fifth of global ​oil shipments.