Iran and the United States remain locked in an impasse over several critical issues, preventing serious negotiations to end the ongoing war. James C. Reynolds and Alex Croft report on the key sticking points that continue to hinder a peace agreement.
Background of the Conflict
Nearly three months have passed since Donald Trump and Benjamin Netanyahu launched their military campaign against Iran, a conflict that rapidly escalated into an international crisis due to Iran's control of the Strait of Hormuz. A Pakistani delegation visited Tehran on Friday to discuss the latest proposals for ending the war, as Washington noted "good signs" in recent talks. However, insiders indicate that fundamental issues remain unresolved, and oil prices continue to climb as investors doubt the likelihood of a genuine breakthrough.
US Secretary of State Marco Rubio told reporters on Thursday that he did not want to be "overly optimistic," stressing that no solution is possible if Tehran persists with a tolling system in the Strait of Hormuz. A senior Iranian source acknowledged that while differences have narrowed in discussions, uranium enrichment and the Strait remain significant obstacles to an agreement.
Trump has stated he is prepared to resume strikes on Iran if he does not receive the "right answers" from its leadership. However, the unpredictable president has fluctuated between threatening the end of Iran's civilization and expressing optimism about a deal. As the Middle East conflict approaches its fourth month, we examine the sticking points preventing a final agreement.
Latest Demands
Tehran submitted its latest offer to the United States earlier this week, which appeared to be better received than previous proposals in Washington. Senior Trump administration officials noted that differences between the two sides were narrowing. However, Tehran's description of the offer suggests it largely reiterates terms previously rejected by Trump, including demands for control of the Strait of Hormuz, compensation for war damage, lifting of sanctions, release of frozen assets, and withdrawal of US troops from the region.
Trump continues to publicly oppose some of these conditions, but faces domestic pressure over the war ahead of the November midterm elections. With Americans angered by surging fuel prices and Trump's approval ratings hitting new lows since his return to the White House, the president is keen to secure a resolution soon.
Iran's Nuclear Programme
Iran's nuclear programme has long troubled American negotiators, even before the conflict erupted on 28 February. On the eve of the war, Iran had agreed to convert its enriched uranium into fuel, abandoning stockpiles and committing to "never, ever" hold nuclear material needed for a bomb, according to Omani mediators. But demands have shifted. A US plan floated earlier this month reportedly proposed a temporary moratorium on enrichment, allowing limited civilian enrichment after several years, as reported by Axios.
That plan also outlined provisions for the UN nuclear watchdog to conduct snap inspections of Iranian sites, while Iran would give up its underground facilities and agree to move all enriched uranium out of the country. In return, the US has offered to lift sanctions and release billions in frozen funds. Trump insisted this week that the US will eventually recover Iran's stockpile of highly enriched uranium, which Washington believes is intended for a nuclear weapon, though Tehran claims it is for peaceful purposes. "We will get it. We don't need it, we don't want it. We'll probably destroy it after we get it, but we're not going to let them have it," Trump told reporters on Thursday.
Israeli Prime Minister Benjamin Netanyahu has said he will not consider the war over until enriched uranium is removed from Iran, Tehran ends support for proxy militias, and its ballistic missile capabilities are eliminated. However, Iran has retained its stockpile of near-weapons-grade enriched uranium and its ability to threaten neighbours with missiles, drones, and proxies. Two senior Iranian sources told Reuters before Trump's comments that Supreme Leader Ayatollah Mojtaba Khamenei had issued a directive that the uranium should not be sent abroad.
The Strait of Hormuz
Speaking on Thursday, Trump also criticised Tehran's intentions to charge fees on ships using the Strait of Hormuz. "We want it open, we want it free. We don't want tolls," Trump said. "It's an international waterway." The closure of the Strait during the war has caused massive disruption to a vital commerce channel that normally carries a fifth of global oil and LNG. Iran has floated plans to charge around $2 million for tankers post-war. The UN Convention on the Law of the Sea states that countries bordering straits cannot demand payment simply for permission to pass through. However, Iran aims to reopen the strait to friendly countries that abide by its terms, potentially including fees.
It emerged on Thursday that Iran and Oman have reportedly held discussions on enforcing a permanent toll on the Strait of Hormuz, despite Trump's warnings. People familiar with the talks told the New York Times that Oman has come around to the idea of sharing revenues from ships crossing the Strait. Rubio stated, "It would make a diplomatic deal unfeasible if they were to continue to pursue that. So it's a threat to the world if they were trying to do that, and it's completely illegal."
Ceasefire for Lebanon
Iranian state media reported earlier this month that Tehran insists on ending the war on all fronts, especially in Lebanon, where proxy group Hezbollah continues to clash with Israeli forces. Fighting has persisted in southern Lebanon despite a US-brokered ceasefire announced on April 16. Netanyahu previously said in a '60 Minutes' interview that an end to hostilities with Iran would not necessarily bring an end to the war in Lebanon.
