Israeli security cabinet minister Zeev Elkin told Army Radio that more talks were still an option but warned: “The Iranians are playing with fire.”
In his brief press conference, Vance did not mention reopening the Strait of Hormuz, a choke point for about 20% of global energy supplies that Tehran has blocked since the war began.
Vance said he had spoken with President Donald Trump as many as a dozen times during the talks. But even as the negotiations continued, Trump said on Saturday that a deal was not entirely necessary.
“We’re negotiating. Whether we make a deal or not makes no difference to me, because we’ve won,” he told reporters.
The U.S. delegation included special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner. Iran’s team included Parliamentary Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi.
“There were mood swings from the two sides, and the temperature went up and down during the meeting,” a Pakistani source said in reference to an early round of talks, which began on Saturday and carried on overnight.
Before the talks began, a senior Iranian source told Reuters the U.S. had agreed to release frozen assets in Qatar and other foreign banks. A U.S. official denied agreeing to release the money.
As well as the release of assets abroad, Tehran is demanding control of the Strait of Hormuz, payment of war reparations and a ceasefire across the region, including in Lebanon, according to Iranian state TV and officials.
Tehran also wants to collect transit fees in the Strait of Hormuz.
Despite the differences in Islamabad, three super tankers fully laden with oil passed through the Strait of Hormuz on Saturday, shipping data showed, in what appeared to be the first vessels to exit the Gulf since the ceasefire deal.
Hundreds of tankers are still stuck in the Gulf, waiting to exit during the two-week ceasefire period.
Trump’s stated goals have shifted, but as a minimum he wants free passage for global shipping through the strait and the crippling of Iran’s nuclear enrichment programme to ensure it cannot produce an atomic bomb.
Tehran has long denied seeking to build a nuclear weapon.
U.S. ally Israel has also been bombing Tehran-backed Hezbollah militants in Lebanon and says that conflict is not part of the Iran-U.S. ceasefire. Iran has insisted that the fighting in Lebanon has to stop.
The Israeli military said it struck Hezbollah rocket launchers overnight between Saturday and Sunday and black smoke could be seen rising in the southern suburbs of the Lebanese capital Beirut on Sunday. In Israeli villages near the border, air raid sirens sounded, warning of incoming rocket fire from Lebanon.