Rubio says US will find 'another way' if Iran talks fail

U.S. Secretary of State Marco Rubio warned on Monday that Washington would deal with Iran "another way" if diplomacy failed, as the Trump administration played down hopes for an imminent breakthrough in the three-month-old war, Reuters reported.

Rubio made the remarks in New Delhi, where he had been on an official visit. President Donald Trump had said on Sunday he told his representatives not to rush into any Iran deal.

What did Rubio say about Iran talks failing?

Rubio said the U.S. would give diplomacy every chance to succeed before exploring "alternatives".

He described a "pretty solid thing on the table," centered on reopening the Strait of Hormuz and entering a time-limited negotiation on Iran's nuclear program. Trump, meanwhile, posted that both sides must "take their time and get it right."

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

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

Iran's Tasnim news agency, linked to the Revolutionary Guards, said the U.S. was still obstructing parts of a potential deal, including Tehran's demand for the release of frozen funds. There was no immediate response from Iran's government to the latest U.S. statements.

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 said Washington understood that Iran's Supreme Leader Ayatollah Mojtaba Khamenei had endorsed the broad template of the deal. There was no immediate confirmation from Iran or clarification of what an "in principle" agreement meant in practice.

What has been agreed so far in the Iran deal framework?

The U.S. official said Washington envisioned first reopening the strait and lifting its naval blockade, with the details of nuclear measures to be negotiated separately over more time.

A second senior administration official said the proposed framework would give negotiators 60 days to reach a final deal. Iranian sources had told Reuters that "feasible formulas" could be found to resolve the dispute over Iran's highly enriched uranium stockpile, including diluting the material under U.N. nuclear watchdog supervision.

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 raised expectations of an imminent deal 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.

How have oil prices reacted to the Iran deal talks?

Oil prices fell six percent to two-week lows on Monday as optimism grew that the U.S. and Iran were moving closer to a deal. Before the conflict began, the Strait of Hormuz carried a fifth of global shipments of oil and liquefied natural gas.

Any agreement reinforcing the current fragile ceasefire would bring relief to markets, though it would not immediately resolve the broader global energy crisis driving up costs of fuel, fertilizer and food.

Trump, whose approval ratings have been affected by the war's impact on U.S. energy prices and who has faced congressional efforts to curb his war powers, has repeatedly raised the prospect of a deal to end the conflict.

He pushed back on Sunday against critics of his handling of the negotiations. "If I make a deal with Iran, it will be a good and proper one. So don't listen to the losers, who are critical about something they know nothing about," he posted.

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

The U.S.-Israeli bombing of Iran killed thousands of people before it was suspended in early April, when a tenuous ceasefire took hold.

Israel has also killed thousands and displaced 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.