Three Major Obstacles to the Collapse of US-Iran Negotiations: Hormuz, Enriched Uranium, and Ten Billion Frozen Funds

US-Iran negotiations ended without results, with three core disagreements blocking progress, but both sides signaled willingness to continue talks.

Xinhua News Agency quoted The New York Times as reporting that, according to two informed Iranian officials, there are three main sticking points in the US-Iran negotiations: the reopening of the Strait of Hormuz, the enriched uranium issue, and the unfreezing of Iranian overseas assets.

US Vice President Vance stated after the talks that after about 21 hours of negotiations, the US and Iran still did not reach an agreement. The two sides held several rounds of “substantive discussions”, but ultimately failed to achieve a breakthrough. He noted that the US side has clearly stated its “red lines” and what is acceptable or unacceptable, but Iran “chose not to accept these terms”.

Iranian Foreign Ministry spokesperson Baghai stated that the two sides reached consensus on some issues, but there remain differences over “two or three important issues”, and added “we should not have expected to reach a deal in a single negotiation from the start”.

Three Key Issues Dominate Negotiation Deadlock

According to The New York Times, citing two informed Iranian officials, the core disagreements in this round of negotiations centered on three issues.

Strait of Hormuz: The Iranian side refused to accept the US proposal of “joint management”, insists on retaining control over the Strait of Hormuz, and claims the right to charge passing ships a “toll fee”. Iran states that any arrangements for opening the strait will only be considered after a final peace agreement is reached.

The US side holds a completely opposite position. US President Trump stated on the 10th that the Strait of Hormuz is international waters, and regardless of “cooperation with Iran or not”, the strait will be “opened soon”; he will not allow Iran to collect tolls.

Nuclear Issue: The US demands Iran hand over its entire stockpile of near-weapons-grade enriched uranium. According to The New York Times, this stockpile weighs about 900 pounds. Iran proposed a counter-offer, but the sides failed to reach a compromise. Furthermore, the US demands Iran not only refrain from developing nuclear weapons now, but also commit long-term to not acquiring related technologies and capabilities. The US said it has “not yet seen a clear willingness from Iran”.

Frozen Assets: Iran demands US compensation for damages caused by six weeks of airstrikes, and the unfreezing of about $27 billion in oil revenue located in Iraq, Luxembourg, Bahrain, Japan, Turkey, and Germany, to be used for postwar reconstruction. The US rejected these demands.

Highest-Level Contact Since 1979, Dialogue Space Remains Despite Negotiation Deadlock

Although there was no substantive breakthrough in the negotiations, the historic significance of this contact between the two sides cannot be ignored.

Reports, citing informed sources, indicate that Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf led a delegation for direct talks with US Vice President Vance. Senior officials from both countries confirmed that a handshake took place and the atmosphere was serious and calm. This dialogue marks the highest-level direct contact between US and Iranian representatives since the 1979 Islamic Revolution and the severance of diplomatic relations.

Six weeks ago, conflict broke out in the Middle East, with targets including Iran’s Supreme Leader Ayatollah Ali Khamenei. At the time, Iran vowed to retaliate, and the possibility of any high-level meeting was widely considered extremely unlikely.

Johns Hopkins University Iran expert Vali Nasr commented: “This is the most determined and sustained direct dialogue between the US and Iran to date, demonstrating both sides’ willingness to end the war. Moreover, the fact that talks could last this long without breaking up is clearly positive.”

After the negotiations, US Vice President Vance stated that the US had offered the “final, best proposal”, but Iran refused, and he declined to reveal the specifics of the red lines. Iran, through Foreign Ministry spokesperson Baghai, said more rounds of negotiation are needed.

Currently, all three core issues involve the fundamental interests of each party, and there is significant uncertainty about whether they can be bridged in the short term. Subsequent talks will continue to affect regional dynamics and the global energy market.

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