Tensions have flared in negotiations between the US and Iran as the two sides remain divided on three critical issues: the status of the Strait of Hormuz, Iran’s enriched uranium reserves, and the fate of nearly $27 billion in frozen Iranian assets held internationally.
Control over the Strait of Hormuz sparks deadlock
Iran has rejected a US proposal for joint oversight of the Strait of Hormuz, insisting on retaining its sole authority over the strategically vital waterway. Tehran has emphasized its right to levy fees on ships passing through and views any compromise as a threat to its sovereignty in the region.
According to Iranian officials, any regulatory changes regarding the reopening of the strait will only be considered after a comprehensive peace agreement is finalized. This stance is seen as one of the key obstacles to swift progress in talks.
The US, on the other hand, regards the Strait of Hormuz as international waters and maintains a firm stance on ensuring free navigation. President Donald Trump has asserted that the passage can be reopened swiftly even without Iranian cooperation.
Trump has also made it clear that Iran will not be permitted to impose tolls on naval transit, underscoring a refusal to compromise on this point. This sharpened the contrast between Washington and Tehran’s positions during the negotiations.
Stalemate on uranium stocks and frozen assets
On the nuclear front, the US is demanding that Iran fully hand over its stockpile of nearly 900 pounds of highly enriched uranium. Washington also wants Iran not only to abandon its current nuclear initiatives but to commit to halting development of nuclear capabilities in the long term.
While Iran has submitted a counteroffer, a middle ground has yet to be found. US officials perceive Iran’s proposals as lacking genuine commitment.
Adding to the dispute, Iran is seeking compensation from the US for airstrikes carried out in the last six weeks. Alongside this, Tehran is pushing for the release of around $27 billion in oil revenues frozen in foreign accounts.
These assets, reportedly held in Iraq, Luxembourg, Bahrain, Japan, Turkey, and Germany, have been earmarked for post-conflict reconstruction. Iranian negotiators view access to these funds as a vital point in the ongoing talks.
Washington remains reluctant on both the payment of compensation and releasing the frozen assets, further complicating the prospect of breakthrough in the negotiations.
Resolving these three contentious issues appears crucial before any comprehensive agreement can be reached. The future of the negotiations hinges on the steps that both sides will take in the coming weeks.
