"Regrettably, despite goodwill on both sides, the parties remain far apart," Pompeo said.
He added that the US remains ready to mediate constructive discussions and urged both sides to negotiate "based on the respective maritime claims both have previously deposited at the United Nations."
The talks seek to resolve an overlap between the two rival nations’ territorial waters and exclusive economic zones over an area of roughly 330 square miles that is situated over large oil and gas deposits beneath the Mediterranean seabed.
Since Hezbollah-dominated Lebanon does not recognise the state of Israel, negotiations are held indirectly with US and UN mediation.