US-Iran Deal Hinges on Sanctions Relief as Key Hurdle Remains

US President Donald Trump has instructed his negotiating team not to rush a deal with Iran, signaling a pause in the high-stakes talks aimed at resolving the nuclear program dispute and lifting sanctions. This comes after Trump's previous statement suggested an agreement was close, but he later clarified that while "constructive" dialogue is ongoing, both sides need time to "do it right."

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Both sides need to take their time and do it right.

The core of the ongoing negotiations revolves around a memorandum of understanding (MOU) that would address opening the Strait of Hormuz and outlining future nuclear talks over a 60-day period. However, significant disagreements persist, particularly concerning the linkage between sanctions relief and Iran's nuclear commitments. The US insists on a proportional approach, where sanctions are eased only as Iran makes corresponding concessions on its nuclear program. Iran, conversely, has consistently demanded the lifting of sanctions from the outset of any agreement.

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No dust, no money.

Iranian media reports indicate Iran's desire for early sanctions and asset freeze relief, warning that the potential agreement could collapse otherwise. Conversely, US officials emphasize that Iran must offer more on uranium enrichment and nuclear materials to receive greater sanctions relief, stating, "No dust, no money." This suggests that immediate asset freezes will not be lifted. The proposed MOU, comprising 14 articles, is intended to be extendable beyond its initial 60-day term. The US frames it around the principle of "pay-for-performance," meaning Iran must fulfill agreed-upon objectives to receive benefits. Iran views it as a framework for future detailed negotiations.

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The blockade will remain fully in place until the deal is struck.

While both sides have reached a preliminary agreement on Iran opening the Strait of Hormuz and the US easing blockades, disputes over sovereignty and control remain. The US wants unimpeded passage without tolls, in exchange for partially lifting sanctions on Iranian ports and allowing oil sales. Trump reiterated that blockades would remain "fully in place until the deal is struck." Iran, however, asserts its control over the strait, with officials stating it is a matter between Iran and coastal nations. The specifics of Iran's nuclear program, including the disposal of enriched uranium and halting enrichment activities, are also contentious. The US seeks Iran to export enriched uranium and halt enrichment for 20 years, while Iran views these as issues for later negotiation. The release of frozen assets is another major point of contention, with Iran demanding immediate clarity and the US linking it to the implementation of the MOU, particularly the opening of the Strait of Hormuz.

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The Strait of Hormuz has nothing to do with the United States. This is a matter between us and the coastal states.