Washington: At the center of the US-Iran negotiations is Tehran's nuclear program, particularly the handling of what is believed to be around 400 kilograms of uranium enriched to about 60%. If further enriched, this material could theoretically suffice to produce several nuclear weapons, something the United States is seeking to prevent. Iran's state-run IRNA news agency stated that "Iran's right to enrich uranium and the retention of enriched material... will be emphasized with a view to their inclusion in the final agreement."
According to Deutsche Welle, while the US has reportedly proposed a long-term moratorium of up to 20 years, Tehran has so far rejected this approach. Instead, talks have centered on a much shorter pause of around five years. Iran views its enriched uranium as a bargaining chip in negotiations and is unwilling to give it up. The country has proposed downblending the material to lower enrichment levels itself, but only in exchange for lifting US sanctions.
The involvement of a third country is also under discussion as a possible compromise. Russia has repeatedly offered to take custody of Iran's highly enriched uranium for secure storage or further processing on its own territory. China is also said to have signaled its willingness to be involved in a new deal as a mediator and logistical partner. Alongside the nuclear issue, the economic dimension also plays a central role. A key point of contention is how to handle Iranian assets frozen abroad, which are estimated to amount to as much as $100 billion.
Much of these funds stem from oil exports that have been blocked by US sanctions in countries such as South Korea, China, and Japan. Tehran is calling for the release of between $6 billion and $12 billion, as well as an easing of sanctions. The US government, meanwhile, wants to release funds only gradually and strictly for humanitarian purposes. At the same time, officials in Washington are reportedly discussing using parts of Iran's frozen assets to compensate for damages suffered by US allies in the Gulf region.
In a post on Truth Social, Trump said peace talks were proceeding "subject to ignorance or stupidity getting in its way." When asked to clarify his post during an interview with ABC News, Trump said, "If people are stupid, we'll end up in something where we have to wipe out an entire infrastructure of a nation, and I don't think that's a good thing, because somebody's going to have to rebuild it." Trump suggested that in such a scenario, the US would likely end up helping to fund the rebuilding of Iran.
Iran, however, rejects any foreign control over its oil resources as a violation of national sovereignty. Public opinion is also shaped by the experience of neighboring Iraq. A significant share of Iraq's oil revenues - the country's main source of income - has effectively been handled from the Federal Reserve Bank of New York in an arrangement dating to the aftermath of the 2003 US invasion of Iraq. The system was originally set up by the US-led transitional administration to safeguard funds for reconstruction.
As an initial step following any agreement, shipping traversing the Strait of Hormuz is to be gradually normalized and the US blockade of Iranian ports lifted. Disruptions to shipping in the key waterway are already having significant effects on global trade and energy prices. Around 20% of global oil and liquefied natural gas exports passed through this narrow chokepoint before the conflict. Despite a ceasefire between Iran and the US in place since April 8, the past weeks have seen near-daily military clashes between the two sides in the Persian Gulf.
Iran, for its part, responded with direct attacks on US targets in the region and most recently escalated further by shooting down a heavy combat helicopter. On Friday, Iran's state media said that Tehran would not give up control over the strategic Strait of Hormuz. "Iran makes no commitment . to cede the management of the strait or the restoration of conditions that existed prior to the American and Israeli military aggression," IRNA reported.