Axios: US weighing sanctions relief, release of frozen assets

US focused on nuclear program; Iran on Strait of Hormuz

Mediators urging Iran to offer nuclear concessions

Both sides seeking common ground ahead of November midterms

US President Donald Trump speaks in the Oval Office at the White House in Washington on Monday. Trump announced that Mesabi Metallics would invest about $15 billion to build the largest steel mill in US history in Iowa. [EPA]
US President Donald Trump speaks in the Oval Office at the White House in Washington on Monday. Trump announced that Mesabi Metallics would invest about $15 billion to build the largest steel mill in US history in Iowa. [EPA]

Donald Trump is willing to ease sanctions and release frozen Iranian assets if Tehran makes concrete concessions on its nuclear program, according to reports. The signal comes after Iran proposed a "seven-day plan" to reopen the Strait of Hormuz — an offer Washington rejected — leaving open the possibility of renewed negotiations. However, a wide gap remains between the two sides: the US is focused on curbing Iran's nuclear program, while Iran is prioritizing the lifting of the maritime blockade and economic sanctions.

Axios reported Monday, citing multiple US officials, that Trump is open to easing sanctions or unfreezing Iranian funds if Tehran takes concrete steps related to its nuclear program.

The two countries are also at odds over what the negotiations should focus on. Iran wants to address the Strait of Hormuz and the US maritime blockade first, while the Trump administration is demanding nuclear concessions from Tehran.

Trump has consistently cited preventing Iran from acquiring nuclear weapons as the central justification for the war. With November midterm elections approaching, the administration has concluded that any deal it can present as ending the conflict will require meaningful Iranian concessions on the nuclear front.

Mediating countries, including Qatar and Pakistan, are also working to restart talks. They were scheduled to meet Iranian Foreign Minister Abbas Araghchi in New York on Monday and planned to hold separate contacts with Trump administration officials that day or Tuesday.

According to the Wall Street Journal, the mediators are urging Iran to offer concessions on the nuclear issue, driven by concern that full-scale hostilities between the US and Iran could resume.

Earlier, Iran had proposed reopening the Strait of Hormuz within seven days and resuming nuclear negotiations, provided the US accepted its conditions. Those conditions were reported to include a halt to US strikes, an end to the maritime blockade and economic warfare, and the release of frozen assets.

Trump rejected the proposal. Mike Waltz, the US ambassador to the UN, said Iran had demanded "everything upfront before agreeing to talk," and said Tehran had failed to demonstrate that it would negotiate in good faith.

Washington's decision to leave open the possibility of sanctions relief and the release of frozen funds is seen as an incentive designed to draw nuclear concessions from Iran amid the deadlock. The Trump administration is signaling that while it will maintain military and economic pressure, it is prepared to offer economic rewards if Iran moves on the nuclear issue.

Whether Iran will respond remains uncertain. The Wall Street Journal said Iran has given mediators little indication that it is prepared to negotiate over its nuclear program. Foreign Minister Araghchi has also maintained that Iran's conditions must be met before the Strait of Hormuz can be reopened.

For now, the Trump administration is placing greater weight on economic pressure than military escalation to extract concessions from Iran. There is also concern that resuming large-scale military operations ahead of the midterms could reignite oil price increases and inflation.

Even after rejecting Iran's seven-day plan, Trump has kept the door open to dialogue. The central question for any future negotiations will be at what level the US is willing to trade sanctions relief and the release of frozen assets for limits on Iran's nuclear program.


sjy@heraldcorp.com