The US and Iran are reportedly negotiating over a three-page plan to end the war between the two countries, with one element under discussion being that Washington would release $20 billion in frozen Iranian funds in return for Tehran giving up its stockpile of enriched uranium.
Axios reported the supposed negotiation point, citing two US officials and two additional sources briefed on the talks.
However, it is also worth noting that US President Donald Trump later wrote on Truth Social that “no money will change hands,” though he didn’t specifically address the idea of unblocking Iranian funds.
The US-Iran deal
There has been steady progress in talks between the US and Iran this week, following the failed round of negotiations in Islamabad last weekend. Still, according to Axios, significant gaps remain between the two countries.
Trump said on Thursday that US and Iranian negotiators would likely meet over the weekend for a second round of talks to try to seal the deal. According to US media reports, the talks are expected to take place in Islamabad, likely on Sunday.
Pakistan is mediating the negotiations, with behind-the-scenes support from Egypt and Turkey.
Why is the uranium a sticking point?
A top priority for the Trump administration is ensuring Iran can’t access the stockpile of nearly 2,000 kilograms of enriched uranium buried in its underground nuclear facilities, particularly the 450 kilograms enriched to 60 per cent purity.
Washington and Tehran are negotiating over what will happen to the stockpile and how much of Iran’s assets will be unfrozen, Axios reported. It also added that both are also discussing the terms on which Iran could use the said money.
According to two sources quoted in the report, the US was ready at an earlier stage of the negotiations to release $6 billion to Iran to purchase food, medicine, and other humanitarian supplies. The Iranians, however, demanded that the $27 billion in funds be unfrozen. The latest figure discussed is $20 billion.
The Uranium compromise
Meanwhile, the Trump administration reportedly asked Iran to agree to ship all its nuclear material to the US, while the Iranians only agreed to “down-blend” it inside Iran.
Under a compromise proposal now under discussion, according to Axios, some of the highly enriched uranium would be shipped to a third country, and some of it would be down-blended in Iran under international monitoring.
The three-page memorandum of understanding (MOU) under negotiation by the two sides also includes a “voluntary” moratorium on Iran’s nuclear enrichment.
What else is being discussed?
The US reportedly demanded that Iran agree to a 20-year moratorium, a proposal Tehran countered with a five-year moratorium. The mediators are still trying to close the gap.
According to the agreement under discussion, Iran would be allowed to have nuclear research reactors for the production of medical isotopes, but would pledge that all of its nuclear facilities would be above ground. The existing underground facilities would remain out of commission.
The MOU also addresses the Strait of Hormuz, though reports said there are still significant gaps on that issue. It’s unclear if the MOU refers to Iran’s ballistic missiles and its support for regional proxies.
