US-Iran peace talks in Islamabad failed due to deep mistrust and maximalist positions, despite a ceasefire. Washington demanded nuclear rollback and open Strait of Hormuz, while Tehran sought sanctions relief and authority recognition. Negotiations focused on domestic messaging over compromise, intensifying economic instability. This failure gravely impacts India’s economic outlook. The author asserts India's mere support for navigation freedom is insufficient. India must actively engage in global efforts to secure unimpeded commerce through the Strait, recognizing its vital strategic interests.