US–Iran Peace Talks Show ‘Slight Progress’ but Key Disputes Still Block a Deal

Because roughly a fifth of the world’s oil and gas shipments transit the strait, control over shipping rules there has become a central strategic issue in the negotiations.

Pakistan’s Emerging Role as a Mediator

Pakistan has stepped into the talks as an intermediary between Washington and Tehran. Interior Minister Mohsin Naqvi has traveled to Tehran multiple times to relay messages and proposals between the two sides.

According to reports from Iranian and regional media, Naqvi has met with Iranian Foreign Minister Abbas Araqchi to discuss potential compromises and help establish a framework that could eventually lead to a formal agreement.

This mediation reflects the indirect nature of the negotiations: instead of direct talks, intermediaries are carrying proposals back and forth while diplomats attempt to reduce the main sticking points.

The Core Nuclear Dispute: Iran’s Enriched Uranium

The most difficult technical issue concerns Iran’s stockpile of uranium enriched to around 60%. That level of enrichment is far above civilian reactor requirements and is considered close to weapons‑grade material, making it a central concern for U.S. negotiators.

Washington has pushed for the enriched uranium to be removed from Iran as part of any deal. Iranian leaders, however, have resisted that demand and instead favor keeping the material inside the country under international monitoring.

This disagreement over where the uranium should be stored has become one of the biggest obstacles to reaching a broader agreement.

The Strait of Hormuz Dispute

The second major issue involves the strategic Strait of Hormuz, a narrow waterway linking the Persian Gulf to global shipping lanes.

Tehran has floated ideas involving greater control over transit rules or even a toll system for ships passing through the strait. U.S. officials have rejected that concept, arguing that imposing fees or new restrictions would undermine the principle of free navigation in international waters.

Because energy exports from the Gulf pass through this corridor, any change to its governance has global economic implications.

Market Whiplash From Deal Rumors

Financial markets have been extremely sensitive to headlines about the negotiations.

Reports suggesting that Washington and Tehran might be nearing a framework agreement triggered a sharp drop in oil prices and a rally in equity markets as traders anticipated reduced geopolitical risk and more stable energy flows.

However, later reporting indicated that no final agreement had been reached and that key issues—particularly uranium disposition and Hormuz control—were still unresolved. Oil prices subsequently rebounded as the initial optimism faded.

What Happens Next

Diplomats say the talks could still produce an interim framework if negotiators manage to narrow the gaps on uranium storage and shipping rules in the Strait of Hormuz. Such a framework could then lead to a more detailed long‑term agreement.

If those disputes remain unresolved, the negotiations are likely to continue without a decisive breakthrough. In that scenario, markets may continue reacting sharply to each new report or rumor about progress.

For now, the situation can best be described as fragile diplomacy: discussions are active, mediators are involved, and there are signs of incremental progress—but the core issues that would define a permanent agreement remain unsettled.