US-Iran talks narrow gaps, but uranium and Hormuz remain sticking points

The United States and Iran remain sharply divided over Tehran’s uranium stockpile and its control over the strategically vital Strait of Hormuz, even as both sides signalled limited progress in ongoing negotiations aimed at preventing a wider regional conflict. US Secretary of State Marco Rubio said there had been “some good signs” during the latest round of discussions, though he cautioned against premature optimism. A senior Iranian source told Reuters that no agreement has been reached so far, but gaps between the two sides have narrowed in recent days. Read Full Story “There’s some good signs. I don’t want to be overly optimistic... So, let’s see what happens over the next few days,” Rubio told reporters. URANIUM STOCKPILE AND HORMUZ REMAIN KEY DEADLOCK At the centre of the deadlock is Iran’s insistence on retaining control over its enriched uranium and maintaining authority over shipping regulations in the Strait of Hormuz — a critical global energy corridor through which a major share of the world’s oil and gas passes. US President Donald Trump adopted a hardline stance, declaring that Washington would eventually seize Iran’s highly enriched uranium stockpile, which the US believes could be used for nuclear weapons development. “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 at the White House. TRUMP OPPOSES SHIPPING RESTRICTIONS IN HORMUZ Trump also strongly opposed any move by Iran to impose fees or restrictions on vessels using the Strait of Hormuz, calling it an international waterway that must remain open and free for global shipping. “We want it open, we want it free. We don’t want tolls,” he said. “It’s an international waterway.” Tehran, however, maintains that its nuclear programme is entirely peaceful. Iranian officials, meanwhile, signalled no willingness to compromise on the uranium issue. Senior Iranian sources told Reuters that Supreme Leader Mojtaba Khamenei has issued a directive prohibiting the transfer of enriched uranium outside the country. Tehran has also continued asserting its sovereignty over the Strait of Hormuz. Iran’s deputy foreign minister stated that recent military actions by the US, Israel, and regional allies had altered the security environment in the waterway, giving Tehran the right under international law to adopt “practical and proportionate measures” to safeguard its maritime interests. ENERGY MARKET ON EDGE AMID ONGOING STANDOFF The diplomatic impasse comes amid growing global concern over energy supplies and rising oil prices. The International Energy Agency (IEA) warned that the ongoing tensions have triggered one of the world’s worst energy shocks and cautioned that fuel markets could enter a “red zone” during the peak summer demand period in July and August. Although some commercial vessels continue to pass through the Strait of Hormuz, maritime traffic remains significantly below pre-conflict levels. Iranian state media reported that only 31 ships transited the waterway in the past 24 hours, compared to the usual daily average of over 125 ships before the conflict escalated. PAKISTAN-LED MEDIATION EFFORTS SHOW LIMITED PROGRESS Meanwhile, efforts to revive diplomacy through backchannel mediation appear to be making limited headway. Pakistan Army Chief Asim Munir is expected to travel to Tehran as part of renewed mediation efforts. Officials involved in the negotiations told Reuters that communication channels between Tehran and Washington were being streamlined amid concerns that Trump’s patience with the stalled process was running thin. "We're speaking to all the various groups in Iran to streamline communication and so things pick up pace. Trump's patience running thin is a concern, but we're working on the pace at which messages are relayed from each side,"," said one of the sources familiar with negotiations to Reuters. Tehran submitted a fresh proposal to Washington this week, but the terms appear largely unchanged from demands previously rejected by Trump. The proposal reportedly includes Iranian control over the Strait of Hormuz, compensation for war-related damages, sanctions relief, the release of frozen Iranian assets, and the withdrawal of US troops from the region. THREAT OF RENEWED CONFLICT PERSISTS Trump has repeatedly warned that the US is prepared to resume military strikes on Iran if negotiations fail to produce what he described as the “right answers.” Iran’s Revolutionary Guards, in turn, have warned that any renewed attacks would provoke retaliation extending beyond the region. Despite weeks of talks and a fragile ceasefire, Iran continues to retain its stockpile of near-weapons-grade enriched uranium, along with missile and drone capabilities that remain a major concern for the US and its allies. Ends With inputs from Reuters