DUBAI (Reuters) — The United States and Iran are moving closer to an interim agreement aimed at reducing hostilities, with negotiations now centered on the release of billions of dollars in frozen Iranian assets, according to Iranian and European sources.
Officials from both sides are reportedly exchanging messages on the final details of a memorandum of understanding despite ongoing military tensions between Tehran and Washington.
Sources familiar with the talks said a broad political framework has been reached, but disagreements remain over how Iranian funds held abroad would be released. Iran is seeking access to between $6 billion and $12 billion of its frozen oil revenues, while the United States favors a phased release tied to humanitarian purchases rather than direct transfers.
A senior European official involved in monitoring the discussions said negotiations are currently focused on technical financial details, particularly the amount of liquidity Iran would receive under any agreement.
Iranian sources described the deal as a way to ease economic pressure and secure access to frozen assets rather than achieve a comprehensive political settlement. They said Tehran views the ongoing military confrontation as a stalemate, with neither side able to achieve decisive results through force.
One source suggested recent military exchanges may have been part of efforts to strengthen negotiating positions ahead of a possible agreement, though the risk of renewed conflict remains.
Trump Seeks Different Terms Than 2015 Nuclear Deal
US President Donald Trump has repeatedly indicated that a deal with Iran could be close, while also warning of stronger military action if talks fail.
Analysts note that Trump is keen to distinguish any new agreement from the 2015 nuclear accord negotiated under Barack Obama. Trump withdrew the United States from that agreement in 2018, arguing it provided Tehran with excessive financial benefits while failing to adequately limit its nuclear ambitions.
The talks come as US pressure on Iran’s economy and Tehran’s influence over the strategic Strait of Hormuz continue to fuel tensions, leaving uncertainty over whether diplomacy can prevent a return to wider conflict.
