Iran Says US Deal to End War Isn’t Imminent, Nuclear Issue Not Under Discussion

Iran said it has reached a basic framework in talks with the US to end the war, but cautioned that it is too soon to say an agreement is near. Tehran also reaffirmed that management of the Strait of Hormuz is a matter for littoral states including Iran and Oman.

Walter Bloomberg, an overseas markets news account, reported on X on May 25 that an Iranian Foreign Ministry spokesperson said, "We have reached a framework, but no one can say an agreement between the United States and Iran is imminent."

Iran is currently engaged in negotiations to end the war, and the nuclear issue is not being discussed at this stage, the spokesperson said. The remarks followed speculation that the US and Iran were nearing a tentative agreement to halt the war in the Middle East.

Iran also struck a cautious tone on the Strait of Hormuz. Management of the waterway falls to the coastal states, the spokesperson said. A potential memorandum of understanding does not include specific provisions on management of the strait, the spokesperson added.

Earlier, a senior Iranian diplomat told Iranian media outlet ISNA that management of the Strait of Hormuz is an issue between Iran and Oman, and that Tehran is holding related talks with Muscat. If the US fulfills its commitments under a potential memorandum of understanding, Iran could discuss the nuclear issue and its stockpile of highly enriched uranium in 60 days of talks in exchange for sanctions relief and the release of frozen assets, the diplomat said.

Markets are watching developments around the Strait of Hormuz and the direction of US-Iran talks as factors that could directly affect global oil prices and sentiment toward risk assets. Still, with Iran pushing back on suggestions that a deal is near, both hopes for progress and uncertainty may be reflected in markets in the near term.