High-stakes negotiations in Islamabad ended without a breakthrough after 21 hours of talks, but analysts say Pakistan has secured a significant diplomatic achievement by bringing long-time rivals to the table.

The breakthrough moment came to an abrupt halt when US Vice President JD Vance announced that Washington’s red lines had been clearly communicated, but the opposing side refused to accept them.

The statement dampened hopes of an immediate agreement and raised fresh questions about whether Pakistan can bring both sides back for another round of talks.

Despite the lack of a deal, experts described the negotiations as a major success.

Senior politician Mushahid Hussain Syed said the length of the discussions indicated detailed engagement between top leadership and technical teams.

Speaking to BBC Urdu, he noted that Pakistan’s biggest achievement was facilitating direct dialogue between two adversaries who had not engaged face-to-face since 1979.

Analyst Talat Hussain said Pakistan stepped in at a critical moment, reinforcing that lasting peace can only be achieved through dialogue.

The talks carry significant economic implications for Pakistan.

Around 85 per cent of its oil and gas supplies pass through regions affected by the conflict. The country’s strained economy has already forced school closures and a reduced workweek for public employees to conserve energy.

By positioning itself as a peacemaker, Pakistan aims to stabilise the region while also improving prospects for foreign investment and strengthening ties with global financial institutions.

Former national security adviser Moeed Yusuf described the collapse of momentum as a setback after widespread optimism.

He told The New York Times that China could now play a key role in persuading Iran to re-engage.

Looking ahead, Professor Simon Wolfgang Fuchs of the Hebrew University of Jerusalem suggested Pakistan could use the remaining ceasefire window to propose a new framework focused on Iran’s nuclear programme, potentially branded as “Islamabad Talks 2.0.”

Meanwhile, Iranian parliament speaker Mohammad Bagher Ghalibaf said the US had failed to build trust, placing the onus on Washington to repair ties.

Analysts warn that if conflict resumes, Pakistan could face a difficult balancing act, especially after recent defence cooperation with Saudi Arabia. However, Iran is also expected to avoid steps that would directly draw Pakistan into the conflict.

For now, observers say the next move rests with US President Donald Trump — whether to de-escalate or risk further escalation.