The United States and Iran have intensified efforts to reach an interim agreement despite ongoing hostilities. The talks matter because they could ease economic pressure and reduce regional tensions. Iranian citizens, businesses, and global energy markets are among those most affected.
Iranian sources and a European official said both sides are exchanging messages on a memorandum of understanding. The discussions focus heavily on releasing billions of dollars in frozen Iranian oil revenues. According to Iranian officials, a political understanding has largely been reached. However, negotiators are still debating technical details and financial mechanisms. Iran wants immediate access to part of its frozen assets. Meanwhile, Washington prefers a phased release tied to humanitarian purchases.
The disagreement over frozen funds remains the most significant hurdle. Iranian sources said Tehran seeks access to between $6 billion and $12 billion. In contrast, the United States opposes transferring the money directly to Iran. A senior European official said current negotiations focus on liquidity levels available to Tehran. As a result, both sides continue detailed discussions aimed at bridging remaining differences.
At the same time, Iranian officials described the military confrontation as a stalemate. They argued that neither side has achieved its strategic objectives through force. One source suggested recent military actions could precede a diplomatic announcement. However, officials cautioned that renewed escalation remains possible. The ongoing blockade and tensions around the Strait of Hormuz continue to increase economic costs for both sides.
US President Donald Trump has repeatedly said an agreement is close while warning of stronger military action. Analysts believe Trump seeks a deal that differs significantly from the 2015 nuclear accord. Iranian leaders, meanwhile, say economic pressures have increased the urgency for diplomacy. President Masoud Pezeshkian stressed that Iran wants peace but will not surrender under pressure. He said ending the current state of uncertainty remains a national priority.