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The United States and Iran began historic face-to-face negotiations Saturday in Pakistan, days after a fragile, two-week ceasefire was announced, as听the war听that has killed thousands of people and shaken global markets听entered its seventh week.

The White House confirmed the direct nature of the talks, a rare instance of high-level engagement.

Iran's state-run news agency said three-party talks including Pakistan began after Iranian preconditions, including a reduction in Israeli strikes on southern Lebanon, were met, and after U.S. and Iranian officials met separately with Pakistani Prime Minister Shehbaz Sharif.

The U.S. delegation led by听Vice President JD Vance听and the Iranian one led by Parliament Speaker听Mohammad Bagher Qalibaf听were discussing how to advance the ceasefire already threatened by deep disagreements and Israel's continued attacks against the Iranian-backed Hezbollah in Lebanon.

Since the Islamic Revolution in Iran in 1979, the most direct U.S. contact had been in 2013 when President Barack Obama called newly elected President Hassan Rouhani to discuss Iran鈥檚 nuclear program. The most recent highest-level meetings were between Secretary of State John Kerry and counterpart Mohammad Javad Zarif during negotiations over the program.

Now talks are underway between Mr. Vance, a听reluctant defender听of the war who has little diplomatic experience and warned Iran not to 鈥渢ry and play us,鈥� and Mr. Qalibaf, a former commander with Iran's powerful Revolutionary Guard who has issued some of Iran's most fiery statements since fighting began.

Iran sets 鈥榬ed lines鈥� including compensation for strikes

Iran doubled down on parts of its earlier proposal, with its delegation telling Iranian state television it had presented some of the plan鈥檚 ideas as 鈥渞ed lines鈥� in meetings with Mr. Sharif. Those included compensation for damage caused by U.S.-Israeli strikes that launched the war on Feb. 28 and releasing Iran鈥檚 frozen assets.

The war has killed at least 3,000 people in Iran, 1,953 in Lebanon, 23 in Israel, and more than a dozen in Gulf Arab states, and caused lasting damage to infrastructure in half a dozen Middle Eastern countries. Iran's chokehold on the vital听Strait of Hormuz听has largely cut off the Persian Gulf and its oil and gas exports from the global economy,听sending energy prices soaring.

Reflecting the high stakes, officials from the region said Chinese, Egyptian, Saudi, and Qatari officials were in Islamabad to indirectly facilitate the talks. The officials spoke on condition of anonymity to discuss the sensitive matter.

In Tehran, residents told The Associated Press they were skeptical yet hopeful about the talks after weeks of airstrikes left destruction across their country of some 93 million people. Some said the path to recovery would be long.

鈥淧eace alone is not enough for our country, because we鈥檝e been hit very hard, there have been huge costs,鈥� Amir Razzai Far said.

Meanwhile, Israel pressed ahead with strikes in Lebanon after saying there is no ceasefire there. Iran and Pakistan have disagreed. The Lebanese state-run news agency reported at least three people killed.

Officials posture over key issues ahead of talks

Ahead of the talks, President Donald Trump accused Iran of using听the Strait of Hormuz, a key artery for global energy supplies, for extortion, and told reporters Friday it would be opened 鈥渨ith or without them.鈥�

Iran鈥檚 closure of the strait has proved its biggest strategic advantage in the war. Around a fifth of the world鈥檚 traded oil had typically passed through on over 100 ships a day. Only 12 have been recorded transiting since the ceasefire.

On Saturday, Mr. Trump said on social media that the U.S. had begun 鈥渃learing out鈥� the strait, but it was unclear whether he was referring to the reported use of mines there or Iran鈥檚 broader ability to control the area.

Iranian Foreign Minister Abbas Araghchi had said Tehran was entering negotiations with 鈥渄eep distrust鈥� after听strikes听on Iran during previous rounds of talks. Mr. Araghchi, part of Iran鈥檚 delegation in Pakistan, said Saturday that his country was prepared to retaliate if attacked again.

Iran and the United States outlined competing proposals ahead of the talks.

Iran鈥檚 10-point proposal called for a guaranteed end to the war and sought control over the Strait of Hormuz. It included ending fighting against Iran鈥檚 鈥渞egional allies," explicitly calling for a halt to Israeli strikes on Hezbollah.

The United States鈥� 15-point proposal includes restricting Iran鈥檚 nuclear program and reopening the strait.

Israel and Lebanon will have direct negotiations

Negotiations between Israel and Lebanon are expected to begin Tuesday in Washington, Lebanese President Joseph Aoun鈥檚 office said Friday, after Israel's听surprise announcement authorizing talks听despite the countries lack of official relations.

But thousands in Lebanon protested the planned negotiations, and Prime Minister Nawaf Salam said he had postponed a planned trip to Washington 鈥渋n light of the current internal circumstances.鈥� It was not immediately clear what that meant for the talks.

Israel wants the Lebanese government to assume responsibility for disarming Hezbollah, much like was envisaged in a听November 2024 ceasefire. But it is unclear whether Lebanon's army can confiscate weapons from the militant group, which has survived efforts to curb its strength for decades.

Israel鈥檚 insistence that the ceasefire in Iran does听not include a pause听in its fighting with Hezbollah has threatened to sink the deal. The militant group joined the war in support of Iran in the opening days. Israel followed up with airstrikes and a听ground invasion.

The day the Iran ceasefire deal was announced, Israel听pounded Beirut with airstrikes, killing more than 300 people in the deadliest day in Lebanon since the war began, according to the country's Health Ministry.

Energy pressures grow

The spot price of Brent crude, the international standard for oil prices, was above $94 on Saturday, up more than 30% since the war started.

And new pressures emerged in Europe for travelers.

The head of Airports Council International-Europe, Olivier Jankovec, warned the European Union that a 鈥硈ystemic jet fuel shortage鈥欌�� could come within three weeks because of the blockage of the Strait of Hormuz.

Mr. Jankovec said in a letter obtained by the AP that the crunch could impact the summer travel season and 鈥硈ignificantly harm the European economy.鈥欌��

This story was reported by The Associated Press.听Metz reported from Jerusalem, Castillo from Beijing, and Magdy from Cairo. Associated Press writer Josh Boak contributed.