US-Iran talks: Lebanon ceasefire, asset release—Tehran sets two key demands before negotiations in Pakistan

Delegations from the United States and Iran are scheduled to meet in Islamabad on Saturday, but the proposed talks risk unravelling before they begin. A tenuous two-week ceasefire has already come under strain, with renewed violence in Lebanon casting doubt over diplomatic momentum. Against this volatile backdrop, Tehran's parliament speaker has set out two clear preconditions, signalling that negotiations cannot proceed without tangible prior steps.

Tehran’s two preconditions

On Friday, Iran’s parliament speaker Mohammad Bagher Ghalibaf explicitly outlined the country’s stance. Writing in English on X, he stated: “Two of the measures mutually agreed upon between the parties have yet to be implemented: a ceasefire in Lebanon and the release of Iran's blocked assets prior to the commencement of negotiations.” He added unequivocally: “These two matters must be fulfilled before negotiations begin.”

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The first demand centres on halting hostilities in Lebanon, where Israeli military operations against Hezbollah have intensified despite the broader ceasefire framework. However, the United States has maintained that Lebanon does not fall within the scope of its ceasefire understanding with Iran. The second demand relates to long-standing financial restrictions, with Tehran insisting on the release of its blocked overseas assets as a prerequisite for engagement. This condition reflects Iran’s continued push for tangible economic relief ahead of any formal negotiations, underscoring its position that substantive actions must precede diplomatic talks.

These conditions reflect Tehran’s insistence on concrete actions rather than preliminary dialogue, effectively raising the stakes ahead of the Islamabad meeting.

Ceasefire disputes and regional tensions

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The demand for a Lebanon ceasefire comes amid escalating violence. Iranian officials have accused Israel of breaching agreed terms, pointing to continued strikes that reportedly killed over 300 people in a single day earlier this week. Israel, however, maintains that Lebanon was not formally included in the original ceasefire arrangement drafted with US involvement. Addressing the issue, US President Donald Trump had also told PBS News in an interview on Wednesday that Lebanon is “not part of the ceasefire agreement… because of Hezbollah,” while adding that the situation would nevertheless “get taken care of.” The conflict has widened since Hezbollah launched missiles at Israel on March 2, prompting intensified Israeli air strikes and a ground offensive in southern Lebanon. Hundreds of thousands of civilians have reportedly been displaced as Israeli forces target areas it considers Hezbollah strongholds.

Diplomatic uncertainty ahead

Further complicating matters, Israeli and Lebanese officials are expected to meet in Washington next week as the United States attempts to stabilise the situation. The outcome of those discussions may prove critical in determining whether US-Iran talks can proceed. For now, Tehran’s conditions remain firm, leaving the planned Islamabad negotiations hanging in the balance.