The U.S. and Iran have failed to reach an agreement after over 20 hours of peace talks on lingering hostilities between the two sides.

American Vice President JD Vance disclosed this at a news conference, giving a brief update on ongoing peace talks held in Islamabad, Pakistan, on Sunday morning.

“They have chosen not to accept our terms,” Mr Vance said. “We leave here with a very simple proposal: a method of understanding that is our final and best offer.”

The American vice president, however, said, “We’ll see if the Iranians accept it.”

While there is still room for agreement to be reached between the two sides as the peace talks continue, a failure to reach an agreement could jeopardise the two-week ceasefire brokered by Pakistan and other global leaders.

Esmaeil Baqaei, the spokesman for Iran’s foreign ministry, on Sunday morning in a social media post, said the discussions in Pakistan “were held on various dimensions of the main negotiation topics, including the Strait of Hormuz, the nuclear issue, war reparations, lifting of sanctions and the complete end to the war against Iran and in the region.”

Mr Baqaei, a member of the Iranian delegation negotiating with the U.S. in Pakistan, said the success of the peace talks is dependent on the U.S.’ “acceptance of Iran’s legitimate rights and interests.”