Vice president JD Vance and his delegation led the talks in Islamabad, but discussions ended without reaching a deal.

The report, which cited officials and people familiar with the situation, noted that President Donald Trump and his advisers are looking at resuming limited military strikes in Iran in addition to a US blockade of the Strait of Hormuz as a way to break the stalemate in the peace talks.

Speaking from his Florida golf resort, Trump told Fox News that Iran’s power plants and water facilities could be targeted if tensions continue to escalate.

“I would hate to do it,” he said, while making clear that all options remain on the table.

The report also noted that Washington is pressing forward with a blockade of the Strait of Hormuz, the narrow waterway through which roughly 20% of the world’s oil passes daily. The move is designed to cut off Iran’s oil revenues, which fund nearly half of the government’s budget.

Some advisers believe the blockade could force Tehran back to the negotiating table, pointing to a similar strategy previously used against Venezuela.

However, the approach carries risks. US Navy vessels operating close to Iranian shores could face drone and missile attacks with little warning.