One of the world's most dangerous geopolitical crises looked set to defuse after talks at a summit ended dramatically with Iran's delegation walking out of negotiations, raising fresh concerns for regional stability and global energy supplies.

The Lake Lucerne Summit, co-chaired by Pakistan and Qatar, was summoned to reconfirm a June 18 memorandum of understanding that contained a 60-day ceasefire, renewed nuclear talks and steps to de-escalate tensions in the Strait of Hormuz. The strategic waterway carries nearly 20 percent of the world’s oil shipments, so any disruption would be of global concern.

The negotiations fell apart after Iranian officials reacted angrily to a recent interview in which the former U.S. President reportedly warned that any attempt to close the Strait of Hormuz would effectively “end” Iran.

Tehran’s delegation strongly reacted to the remarks and walked out of the meeting after about 80 minutes of discussions.

American officials said the comments were a negotiating tactic to increase pressure on Iran. But Iranian negotiator Mohammad Ghalibaf dismissed what he called threats, saying Tehran would not be bullied. The session also featured attempts to defuse tensions that apparently failed, with observers noting what they called visible diplomatic snubs that included missed handshakes and strained exchanges. U.S. Vice President JD Vance was reportedly trying to break the ice with some humor, but the mood remained tense.

Now global markets are awash with uncertainty, including a 2 percent rise in oil prices, as negotiations have now paused. Mediators from Pakistan and Qatar continue working behind the scenes to bring both sides back to the table, but the path toward a breakthrough remains uncertain.

Credit: Independent News Pakistan (INP)