Iran-US ceasefire diplomacy accelerates: Vance says talks set 'good foundation', hotline agreed, but Tehran warns Hormuz will never return to pre-war state

US-Iran diplomacy took a significant step forward as Vice President JD Vance declared that talks with Iranian officials had set a 'good foundation' for a deal to end the conflict, while the two sides separately agreed to establish a direct hotline over the Strait of Hormuz to manage shipping and military tensions in the critical waterway.

In a notable concession, Iran agreed to allow UN nuclear inspectors to return — a development reported by The Guardian — signalling that Tehran is willing to make verifiable commitments on its nuclear programme as part of any broader agreement. The move suggests the outlines of a deal are beginning to take shape after weeks of military and diplomatic pressure.

Yet Iran was careful to manage expectations at home and abroad. Tehran issued a pointed warning that the Strait of Hormuz will 'never return' to its pre-war state, suggesting Iran intends to retain leverage over the passage even after any formal ceasefire or agreement. Shipping through Hormuz had slowed sharply after Iran announced a renewed closure, disrupting global oil flows.

President Trump, meanwhile, kept pressure on Tehran with a stark warning: 'I will do what I have to do' if Iran does not honour any deal, adding that the US has granted a 60-day sanctions waiver as a goodwill measure. The Pentagon was simultaneously reported to have sought $80 billion from Congress for the Iran war — a signal that Washington is keeping its military options fully alive even as diplomacy advances.

For India, the trajectory of these talks is consequential. The Strait of Hormuz is a critical artery for Indian energy imports, and any lasting resolution — or continued instability — will shape oil prices, shipping costs, and India's trade with the Gulf region for months to come.