Iran and US play down hopes for imminent breakthrough in war

Iran and the United States played down hopes for an imminent breakthrough in the three-month-old war on Monday, with Secretary of State Marco Rubio warning that Washington would deal with Iran in "another way" if diplomacy failed, Reuters reported.

Rubio told reporters in New Delhi that the U.S. would give diplomacy every chance to succeed before exploring "alternatives." Iran's foreign ministry said no one could call an agreement imminent.

Why is a US-Iran deal not imminent?

Iran's foreign ministry spokesperson Esmaeil Baghaei said on Monday that while a framework had been reached, no agreement was imminent.

He added that the potential memorandum of understanding contained no specific details about the management of the Strait of Hormuz, which he said belonged to the coastal countries. Iran was negotiating an end to the war, he said, and was not currently discussing nuclear issues.

What are the main sticking points in the US-Iran negotiations?

The two sides remain at odds on several difficult issues, including Iran's nuclear ambitions, Israel's war in Lebanon with Iranian-backed Hezbollah, and Tehran's demands for sanctions relief and the release of tens of billions of dollars in frozen oil revenues.

A senior Trump administration official, speaking on condition of anonymity, said Iran had agreed "in principle" to open the Strait of Hormuz in exchange for the U.S. lifting its naval blockade, and to dispose of its highly enriched uranium.

The official pushed back on suggestions Iran had not accepted disposing of the stockpile, saying: "It's a question about how."

The U.S. understood that Iran's Supreme Leader Ayatollah Mojtaba Khamenei had endorsed the broad template of the deal, the official added.

A second senior administration official said the proposed framework would give negotiators 60 days to reach a final agreement.

Iranian sources told Reuters that "feasible formulas" could be found in future stages to resolve the dispute over enriched uranium, including diluting the material under U.N. nuclear watchdog supervision.

What did Rubio say about reopening the Strait of Hormuz?

Rubio described "a pretty solid thing on the table" focused on reopening the strait and entering a time-limited negotiation on nuclear matters. Iran's foreign ministry spokesperson said Tehran would not charge tolls for passage through the waterway, but added that "it is normal for services provided to require a price." Before the conflict, the strait carried a fifth of global shipments of oil and liquefied natural gas.

Trump raised expectations on Saturday when he said the two sides had "largely negotiated" a memorandum of understanding on a peace agreement that would reopen the Strait of Hormuz. A day later, he posted that the U.S. blockade would "remain in full force and effect until an agreement is reached, certified, and signed." He added: "Both sides must take their time and get it right."

How have oil prices reacted to the Iran-US talks?

Oil prices fell five percent to two-week lows on Monday as optimism grew that the U.S. and Iran were moving closer to a deal.

Any agreement reinforcing the current fragile ceasefire would bring relief to markets but would not immediately resolve the global energy crisis driving up costs of fuel, fertilizer and food. A tenuous ceasefire has held since early April.

What is the human cost of the Iran-US war so far?

The U.S.-Israeli bombing of Iran killed thousands of people before it was suspended in early April. Israel has also killed thousands more and driven hundreds of thousands from their homes in Lebanon, which it invaded in pursuit of Hezbollah. Iranian strikes on Israel and neighboring Gulf states have killed dozens.

Iran has long denied U.S. and Israeli accusations that it is pursuing nuclear weapons, saying it has the right to enrich uranium for civilian purposes.

The purity Iran has achieved, however, far exceeds what is needed for power generation. Trump, whose approval ratings have been affected by the war's impact on U.S. energy prices, has repeatedly raised the prospect of a deal to end the conflict that the U.S. and Israel started on 28 February.