The U.S. and Iran are reportedly negotiating a three-page plan to end the ongoing conflict, with a key element under discussion involving the U.S. releasing $20 billion in frozen Iranian funds in exchange for Iran relinquishing its stockpile of enriched uranium. This information comes from two U.S. officials and two additional sources briefed on the talks.
This development is significant as talks have shown steady progress this week, despite considerable gaps remaining. Such a deal would bring the conflict to a close, though it could provoke strong opposition from Iran hawks.
President Trump stated Thursday that U.S. and Iranian negotiators are likely to convene this weekend for a second round of talks aimed at finalizing the agreement.
The discussions are expected to take place in Islamabad, likely on Sunday, according to a source familiar with the mediation efforts. Pakistan is facilitating the negotiations, with behind-the-scenes support from Egypt and Turkey.
A top priority for the Trump administration is to ensure Iran cannot access its nearly 2,000kg stockpile of enriched uranium, particularly the 450kg enriched to 60% purity, stored in its underground nuclear facilities.
Meanwhile, the Iranians are in need of funds.
The parties are negotiating the fate of the stockpile, the amount of Iranian assets to be unfrozen, and the conditions under which Iran could utilize those funds.
*Update:* Following the publication of this story, Trump posted on Truth Social that “no money will change hands,” though he did not specifically refer to the concept of unblocking Iranian funds.
According to two sources, the U.S. was prepared in an earlier stage of negotiations to release $6 billion for Iran to purchase food, medicine, and other humanitarian supplies. The Iranians, however, demanded $27 billion.
The latest figure discussed by the U.S. and Iran is $20 billion, sources indicate. One U.S. official characterized this as a U.S. proposal, while another described the cash-for-uranium concept as “one of many discussions.”
Concurrently, the U.S. requested Iran agree to ship all its nuclear material to the U.S., whereas the Iranians only consented to “down-blend” it within Iran.
Under a compromise proposal currently under consideration, some of the highly enriched uranium would be shipped to a third country (not necessarily the U.S.), and a portion would be down-blended in Iran under international monitoring.
The three-page memorandum of understanding (MOU) being negotiated also includes a “voluntary” moratorium on nuclear enrichment by Iran.
In the last round of talks, the U.S. demanded a 20-year moratorium, while Iran countered with five years. Mediators are still working to bridge this difference.
As part of the MOU, Iran would be permitted to operate nuclear research reactors for the production of medical isotopes, but would pledge that all its nuclear facilities would be above ground. Existing underground facilities would remain out of commission.
The MOU also addresses the Strait of Hormuz, though sources indicate significant disagreements persist on this issue.
It remains unclear whether the MOU refers to Iran’s ballistic missiles and its support for regional proxies.
Israel and Republican hawks in Washington have previously insisted that these topics be included in any negotiations with Iran.
Republicans and Trump himself have also criticized President Obama for releasing tens of billions in Iranian funds under the 2015 nuclear deal. The Trump administration may therefore insist on strict limitations on how any unfrozen assets can be used.
“Iran has moved, but not far enough. We will see what it takes to make them move forward,” the second U.S. official commented.
The official added, “Iran clearly desires the $20 billion — and much more. They unequivocally want to sell oil at free-market rates without sanctions and participate in the global financial system. However, they also wish to maintain their nuclear weapons program and fund groups like Hamas. They are not willing to relinquish these ambitions sufficiently to gain what we are offering.”
White House spokesperson Anna Kelly stated that talks had been “productive” but emphasized that the U.S. would “not negotiate through the press,” adding that “anonymous sources who claim to know about sensitive diplomatic discussions have no idea what they are talking about.”
Senator Lindsey Graham (R-S.C.) informed Fox News that Trump had spoken directly with the Iranians, and that discussions became “sporty” during a recent call.
Trump told reporters on Thursday that Iran had agreed during negotiations to commit to “a very, very powerful statement… that they will not have nuclear weapons.” He also claimed Iran agreed to give the U.S. “the nuclear dust,” referring to the enriched uranium stockpile.
“We are very close to making a deal. If no deal, fire resumes,” Trump declared, making it clear he was willing to extend the ceasefire beyond its April 21 expiration if necessary.
*What to Watch:* On Friday, Pakistani, Egyptian, and Turkish mediators will hold a “quad” meeting with Saudi officials on the sidelines of a diplomatic forum in Turkey. This meeting will focus on efforts to broker a deal between the U.S. and Iran.
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