US, Iran still at odds on key issues, but both sides report signs of progress

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US Secretary of State Marco Rubio says a diplomatic solution would become unfeasible if Iran pushes through with plans to impose tolls in the Strait of Hormuz

WASHINGTON/DUBAI – The United States and Iran remained at odds on Thursday, May 21, over Tehran’s uranium stockpile and control of the Strait of Hormuz, although US Secretary of State Marco Rubio said there had been “some good signs” in ongoing talks.

US President Donald Trump said Washington would eventually recover Iran’s stockpile of highly enriched uranium, which the US believes is intended for nuclear weapons, though Tehran insists it is for peaceful purposes.

Rubio said a diplomatic solution would become unfeasible if Iran pushed through with plans to impose tolls in the Strait of Hormuz, a critical global oil shipping route.

A senior Iranian source told Reuters no deal had been reached, though gaps between the two sides had narrowed, with uranium enrichment and Iran’s control over the strait remaining major sticking points.

Little progress in talks

Despite a fragile ceasefire that has held for six weeks, negotiations to end the war have shown little progress.

Pakistan, which has acted as a mediator, was reportedly preparing another round of talks in Tehran as Trump warned his patience was running thin.

Iran this week submitted a new proposal to Washington, but Iranian descriptions suggested it largely repeated demands previously rejected by Trump, including control over the Strait of Hormuz, compensation for war damage, sanctions relief, release of frozen assets, and the withdrawal of US troops.

Trump reiterated that the US was prepared to resume strikes on Iran if talks failed, while Iran’s Revolutionary Guards warned renewed attacks would trigger retaliation beyond the region.

Global energy shock

The conflict has continued to rattle global energy markets, with oil prices swinging amid uncertainty over negotiations.

The International Energy Agency warned the war had produced the world’s worst energy shock and said peak summer demand could push markets into the “red zone” in the coming months.

Iran has allowed only limited shipping through the Strait of Hormuz compared with pre-war levels, while Tehran said it intended to reopen the route only to countries that complied with its terms, potentially including fees.

Rubio called such a move “completely illegal” and warned it would threaten any diplomatic agreement.

Trump and Israeli Prime Minister Benjamin Netanyahu have said the war aims include dismantling Iran’s nuclear and missile capabilities and curbing its support for regional militias.

But Iran has retained its stockpile of near-weapons-grade uranium and its ability to threaten neighboring countries through missiles, drones, and proxy militias. – Rappler.com