• The U.S. has offered to unfreeze only 25% of Iranian funds on a phased schedule, while Tehran demands full access and complete sanctions relief.
  • Iran's revised proposal also links any deal to a permanent end to conflict, reopening of the Strait of Hormuz, and postponing detailed nuclear negotiations.
  • Despite agreeing on some guiding principles, a breakthrough is not imminent, with key sticking points over the pace of relief and scope of nuclear commitments.

Negotiators from Iran and the United States remain far apart in ongoing talks, according to a senior Iranian source who told Reuters that Washington has shown limited flexibility. The U.S. has agreed so far to a phased release of only about 25% of Iranian funds, a far cry from Tehran's demand for full access to its frozen assets and a complete lifting of sanctions.

Iran has revised its proposal, now tying any agreement to a permanent end to conflict, the reopening of the Strait of Hormuz—a critical chokepoint for global oil shipments—and a delayed approach to detailed nuclear talks in later stages. The demands reflect Tehran's determination to secure broader economic and security guarantees before committing to nuclear limits.

The talks, which have included indirect meetings in Oman and discussions framed around "guiding principles," have not yielded a breakthrough. While both sides have agreed on some broad principles, the pace of fund unfreezing and the scope of sanctions relief remain major hurdles. Without a deal, Iran's access to foreign currency, oil revenues, and international trade will remain restricted, fueling domestic inflation and economic pressure.

Attempts to reach officials from both sides for comment were not immediately successful. The outcome of the negotiations carries significant implications for global energy markets, as even the threat of disruption at the Strait of Hormuz could raise oil and gas prices and increase shipping risk premiums.

Correction: A previous version of this article misstated the percentage of funds the U.S. has agreed to unfreeze. It is 25%, not 20%.