The US has said Iran is refusing to make concessions that Washington considers necessary for a lasting peace deal, as Tehran appeared to adopt a harder line after the expiry of a 60-day window for talks.
“Iran is not showing any interest in doing something that makes sense for us,” said Jared Kushner, US special envoy. “They have to be willing to make a real deal.”
Mr Kushner said US President Donald Trump would be open to an agreement if Iran gave up its ability to develop a nuclear weapon. “They have to want to be a real country, which is no nuclear weapons and no funding terror in the region,” he told Fox News.
Despite the impasse, Mr Kushner said US contacts with Iranian officials have been unusually extensive. “The conversations between the US government and different areas of the Iranian government at all areas is probably more robust than it’s maybe ever been.
“There’s been a lot of good dialogue,” Mr Kushner said, while acknowledging the two sides had not reached an understanding. “We’re not there yet.” Mr Trump did not want to “rush to a deal”, he added.
His comments came after a senior Iranian official told Reuters that Tehran would shift to a “fully offensive” military posture if diplomacy failed.
“Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region, as Iran will be ready to make decisions and take action on difficult decisions,” the official was quoted as saying.
They warned that Iran would conduct a “timely and precise” military attack to break the US naval blockade of the Strait of Hormuz if diplomacy failed.
Trump threatens to bomb Oman
A framework for talks to end the war had given the US and Iran until Monday to reach a peace settlement.
The June 17 agreement that had set a 60-day time frame for the talks unravelled over a dispute about control of the Strait of Hormuz, a chokepoint for one fifth of the world’s energy supplies in times of peace.
The Iranian official who spoke to Reuters said the US must meet the entirety of the agreement's provisions within a few weeks as a precondition for further negotiations.
On Tuesday, Tehran's top negotiator, Mohammad Baqer Ghalibaf, said the Strait of Hormuz would remain closed until the US meets conditions of the June 17 agreement, including lifting the marine blockade and sanctions as well as unfreezing Iranian assets.
Iran said an understanding had been reached with Oman on a route map for ships but that they were still working to finalise a joint announcement.
Esmaeil Baghaei, Iranian Foreign Ministry spokesman, said negotiations were continuing despite delays, which he blamed on the complexity of the talks and “destructive efforts” by some quarters.
Shipping through the Strait of Hormuz has slowed sharply.
Five commodity vessels transited the waterway on Saturday and none were registered on Sunday, Kpler data showed, compared with 31 vessels over the previous weekend. Before the war, more than 130 ships a day passed through the waterway.
Some vessels may have gone undetected after switching off their transponders but latest figures still point to a dramatic decline in traffic.
The disruption intensified after the UAE said three vessels operated by Adnoc had been attacked while transiting the strait last week.
On the diplomatic front, Washington appeared to be pursuing several channels.
Mr Trump, in an interview with Fox News, confirmed the US was engaged in back-channel talks with Iran's Islamic Revolutionary Guard Corps.
It followed reports that his administration had secretly turned to Nechirvan Barzani, President of Iraqi Kurdistan, to facilitate the talks. A source in his office confirmed to The National that he had played such a role.
Mr Baghaei denied the talks, calling the reports psychological warfare designed to create divisions within Iran’s leadership.
In the interview, Mr Trump also warned Oman against interfering in US efforts involving Iran. “If Oman gets in the way, we’ll bomb” them, he said.
His threat came after an unidentified projectile struck a vessel travelling through the waterway, said the UK Maritime Trade Operations. The impact damaged the engine room and left one crew member injured. Omani coastguard forces assisted the remaining crew. UKMTO did not identify the vessel, the projectile or its origin.
Iran is also under growing economic pressure, with the war compounding inflation, currency weakness, energy shortages and sanctions, while damaging infrastructure and disrupting trade.
Mr Ghalibaf addressed those concerns on Tuesday as he called for unity in a country that was engulfed in January by nationwide protests sparked by worsening living standards. Thousands were killed in a crackdown on the demonstrations.
"I consider the people’s economic grievances justified, and I respect all of their political and social criticisms, but these are times when the fervent gatherings in our squares must once again show the enemy the strength of our unity," he said.
Oil prices rose for a third session on Tuesday as prospects receded for a deal to end the Middle East war.
