March 25, 2026

US Pause: A Betting on Diplomacy?

 



President Trump could smartly find a way out of the Iran war, albeit temporarily. After bombing Iran jointly with Israel for 26 days and killing around 1,443 Iranian civilians besides their high ranking leaders, Trump declared a pause: He postponed attacks on Iran’s power plants—36 hours after issuing a 48-hour warning to Iran to open Strait of Hormuz, and after Iran’s foreign minister, Abbas Araghchi said that the Strait is open for all the vessels other than those of the US and its allies—for five days for Iran to negotiate a deal.

A week before that, Trump declared victory, stating that the US and Israeli strikes obliterated Iran’s defence capabilities. Yet, Iran continued to fire missiles at Israel and Gulf countries while exercising its full control over Hormuz as a bargaining chip. Indeed, since the beginning of the war, Iran has ignored the US threats: It responded to the US escalation with its counter-escalation.

When the US bombed Kharg Island, Iran fired missiles at American bases in the Gulf region. When Israel targeted Iran’s South Pars gas field, Iran soon after hit energy facilities across the Gulf region, including Qatar’s Ras Laffan plant. Immediately after Israel targeted Iran’s Natanz nuclear facility, Iran fired ballistic missiles on its two southern towns close to its nuclear facility, causing extensive damage. According to the Israeli Ministry, 116 people were injured in Arad and 64 in Dimona—some seriously.

Targeting Iran’s missile production, navy and nuclear facilities to degrade their capabilities by intense bombing, US thought that it could obliterate Iran’s might without resorting to a long-drawn ground war. Along with the intense combat stance, the US appears to have kept the door open to negotiations—aides like Jared Kushner and Steve Witkoff appear to be negotiating through back channels such as Pakistan to make a deal. Reports indicate that a 15-point action plan was sent to Iran through Pakistan/Egypt/Turkey to end the war. The current ‘pause’ declared by Trump signals such a possibility. Reports indicate that thousands of Marines are already on the way to the Gulf, indicating the probability of ground operations, if necessary. Through such coercion tactics US is perhaps hoping to get a diplomatic deal to dismantle Iran’s nuclear capabilities and hand over the enriched uranium to the IAEA.

But, Iran is denying the US claims that negotiations are underway. Its President, Masoud Pezeshkian, however, indicated a few conditions for ending the war: Guarantees against future aggression, reparations for infrastructure damage and recognition of Iran’s ‘legitimate rights’, which perhaps might mean relief from sanctions (?). Interestingly, US has already eased sanctions on Iran’s oil: Its treasury department issued a 30-day sanctions waiver for the sale and delivery of Iranian crude oil and petroleum products that were already loaded onto ships as of March 20, 2026, but not against fresh orders, essentially to stabilise global oil prices.

Intriguingly, all these developments plus the domestic compulsions of warring parties indicate that the time has ripen for both the US and Iran to move away from combat and embrace diplomacy to settle the conflict. The US President has his own compulsions: the mounting cost of war and its impact on growth: S&P global reported that business activity in March slowed to an 11-month low after the war, effect on treasury and bond-yields, effect on stock market, rise in domestic gasoline prices, and importantly, the forthcoming elections to Congress will all call for no further escalations in war. His approval rates, too, are low. Opening up of the Strait of Hormuz is still posing a challenge.

In a similar vein, Iran has already suffered a lot by virtue of sanctions and on top of that, the present war has caused enough damage for its people to turn sour about its consequences. The regime may not be able to suppress the people’s anger at the war-inflicted suffering forever. The ill-will generated by its missile attack on neighbouring Gulf countries may isolate it forever. There is thus a need for Iran to find alternatives to war to rebuild its nation.

Amidst these developments, Israel remains a sore point, for it currently does not appear to be fully aligned with the US objectives, as is revealed by its continued raids on Tehran and Lebanon. It cannot treat Lebanon as Gaza Strip and continue with its raids on Southern Lebanon to eliminate Hezbollah from its neighbourhood—rather, it may have to work for its goal through Lebanon government.

Once the US and Iran come to the negotiating table, the whole scenario may change. Israel, though unhappy about not accomplishing its twin objectives of eliminating Hezbollah from its neighbourhood and regime change in Iran, cannot but toe its line, for it is heavily dependent on the US for weapons and intelligence. Similarly, Saudi Arabia, which is presently reported to be pressing the US to go the whole hog to put Iran in its place, but once the US arrives at a deal, it may also remain silent. But the big question is: Trust—trust between the US and Iran. Iran accuses that twice in the past the US has attacked it while negotiations were in progress. Everything is thus fluid, but one thing is certain: both have incurred enough losses, and this alone shall push them to a deal!

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