US, Iran still on track for deal after overnight talks despite clashes, sources say

Talks to reach a deal between Washington and Iran are still on track after overnight negotiations, CNN reports, citing a diplomatic source.

Efforts to reach a preliminary deal between Iran and the US have intensified, three Iranian sources later confirm to Reuters, as they discuss a mechanism for releasing frozen Iranian funds.

The US and Iran traded air attacks for a second straight day on Thursday, with US President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal.

Separately, Pakistan’s foreign ministry says the country’s leaders were still engaged in mediation efforts to end the US-Iran war despite a surge in conflict, calling for a “negotiated settlement.”

“It is hard to be an optimist in the new exchange of hostilities. We haven’t lost hope, we remain engaged,” foreign ministry spokesman Tahir Andrabi tells journalists.

“Let’s not draw curtains on Pakistan’s mediation approach,” he adds.

“Pakistan remains deeply concerned at the situation in the region marked by recent escalation,” Andrabi says.

“We are of the view that diplomacy and dialogue should be the guiding principles for achieving a negotiated settlement of all contentious issues.”

He adds that Pakistan’s interior minister had returned from a visit to Tehran in recent days, confirming he had given a message and letter from the prime minister to the Iranian leadership as part of the mediation efforts.