President Donald Trump has signaled that the U.S. may lift sanctions against Iran and unfreeze Iranian assets, but only if Tehran demonstrates clear progress in its nuclear program. Officials confirmed that negotiations with Iran are advancing through intermediaries, though the White House has insisted any agreement must include firm commitments on nuclear matters.
Trump dismissed Iran’s most recent proposal on Saturday, labeling it “unacceptable.” The Iranian government’s offer centered on reopening the Strait of Hormuz, a vital maritime passage that has become a focal point in the talks. Even after the rejection, diplomatic efforts continue, with Trump telling Axios he anticipates further discussions this week.
The U.S. delegation includes special envoy Steve Witkoff, Jared Kushner, Vice President JD Vance, and Secretary of State Marco Rubio. Trump argued that Iran’s latest position reflects an outdated strategy, stating, “They overplayed their hand.” Iran has indicated flexibility on nuclear issues, according to the U.S.
While Iran has shown willingness to address nuclear concerns, disagreements persist over the sequence of concessions. U.S. Ambassador to the UN Mike Waltz noted that Tehran is demanding broad sanctions relief upfront rather than linking benefits to future compliance. The Iranian government has sought access to billions in frozen assets alongside broader economic relief.
Waltz also raised concerns about Iranian adherence to past agreements, pointing to a July memorandum of understanding that Tehran violated by attacking commercial shipping. The negotiations are further complicated by efforts to restore free passage through the Strait of Hormuz, a critical energy route. Past disruptions have pushed Brent crude prices above $108 per barrel.
One proposed framework discussed in mediation would require reopening the strait and lifting the U.S. blockade before easing broader sanctions, according to diplomatic sources. Qatar is facilitating the talks. Trump has repeatedly emphasized that preventing Iran from developing nuclear weapons remains the administration’s top priority, though he acknowledged active negotiations last week.