Negotiations between the United States and Iran in Pakistan have reached an impasse over control of the Strait of Hormuz, the Financial Times reports, citing two sources familiar with the matter.

One source told the outlet that Iran is insisting on maintaining its control over the strait and its right to charge vessels a fee for passage. According to the report, Iranian negotiators are rejecting the idea of "joint control." The opening of the Strait of Hormuz — which connects the Persian Gulf to the Gulf of Oman and onward to the Indian Ocean — remains the key sticking point in the talks, sources told the paper.

The Iranian delegation, led by parliamentary speaker Mohammad Bagher Ghalibaf, arrived in the Pakistani capital late Friday night for negotiations with the US over resolving the conflict. US Vice President JD Vance, who is heading the American negotiating team, flew into Pakistan on Saturday morning.