The Three Major Obstacles in US-Iran Negotiations: Hormuz, Enriched Uranium, and Ten Billion in Frozen Funds

US-Iran talks ended without results, with three core disagreements blocking the negotiation process. However, both sides have signaled their intention to continue contact.

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 talks: the reopening of the Strait of Hormuz, the enriched uranium issue, and the unfreezing of Iran’s overseas assets.

US Vice President Vance stated after the meeting that after about 21 hours of negotiations, the US and Iran still failed to reach an agreement. The two sides had conducted several rounds of “substantive discussions,” but ultimately made no progress. He noted that the US had clearly outlined its “red lines” as well as its acceptable and unacceptable conditions, but Iran “chose not to accept these terms.”

Iranian Foreign Ministry spokesperson Baghaei, on the other hand, stated that the two sides had reached consensus on some issues, but have differences on “two or three important issues,” adding that “we should not expect to reach an agreement in a single negotiation.”

Three Key Issues Dominate Negotiation Deadlock

According to the New York Times quoting two informed Iranian officials, the core differences in this round of negotiations focus on three topics.

Strait of Hormuz: Iran refused to accept the US proposal for “joint management,” insisting on retaining control over the Strait of Hormuz and stating the right to charge “passage fees” for vessels passing through. Iran stated that arrangements for opening the strait would only be considered after both sides reach a final peace agreement.

The US took a completely opposite stance. President Trump stated on the 10th that the Strait of Hormuz is an international waterway; with or without Iran's cooperation, the strait would “soon” open, and he would not allow Iran to charge tolls.

Nuclear Issue: The US demanded that 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 submitted a counter-proposal on this matter, but the sides failed to reach a compromise. In addition, the US requested that Iran not only refrain from developing nuclear weapons now, but also make a long-term commitment not to acquire relevant capabilities and technology. The US stated that it has “not yet seen clear intent” from Iran.

Frozen Assets: Iran requested compensation from the US for damage caused by six weeks of airstrikes, and asked for the release of approximately $27 billion in oil revenues frozen in Iraq, Luxembourg, Bahrain, Japan, Turkey, and Germany for postwar reconstruction. The US rejected these demands.

Highest-Level Contact Since 1979, Dialogue Remains Possible Despite Deadlock

Although the talks failed to achieve significant breakthroughs, the historical significance of this high-level meeting should not be overlooked.

According to sources, Iranian parliamentary speaker Mohammad Bagher Ghalibaf led a delegation in direct talks with the US representative, Vice President Vance. It is reported that high-level officials from both countries confirmed they shook hands, with the atmosphere described as serious and calm. This dialogue marks the highest-level direct contact between US and Iranian representatives since the 1979 Islamic Revolution and the severing of diplomatic ties.

Just six weeks ago, a Middle East conflict erupted, targeting Iran’s Supreme Leader Ayatollah Ali Khamenei. At that time, the possibility of a high-level meeting was widely seen as extremely unlikely.

Vali Nasr, an Iran expert at Johns Hopkins University, stated: “This is the most determined and sustained direct dialogue so far between the US and Iran, reflecting both sides’ willingness to end the war. Moreover, the fact that talks could continue for so long without breaking down is clearly a positive sign.”

US Vice President Vance stated after the talks concluded that the US had offered the “final best proposal,” but Iran rejected it. He declined to disclose the specific red lines. The Iranian side, through Foreign Ministry spokesperson Baghaei, said more rounds of negotiations are needed.

Currently, all three core topics pertain to the vital interests of all parties, and it remains highly uncertain whether the gaps can be bridged in the short term. Future meetings will continue to affect regional trends and the nerves of the global energy market.