Iran hails US talks and hopes for investment to revitalise economy

Tehran has confirmed discussions led to an understanding on broad framework of negotiations

A tourist visits the former US embassy in Tehran. Iran and the US have had no diplomatic relations since shortly after Iran's 1979 Islamic revolution. Getty Images

Iran has praised the continuing talks with the US as the two sides prepare for further meetings, saying it hopes they could lead to investment and help revive its ailing economy.

The second round of negotiations led by Iranian Foreign Minister Abbas Araghchi and US envoy to the Middle East Steve Witkoff ended on a positive note in Rome on Saturday. The Oman-brokered talks lasted for four hours and officials declared it a “good meeting” that yielded progress.

Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi told state media that during the talks in Rome, the two sides “reached a mutual understanding on the broad framework” of the negotiations.

For years, the two sides have been at odds over Tehran's nuclear activities. But Omani Foreign Minister Badr Al Busaidi thanked Mr Araghchi and Mr Witkoff “for their highly constructive approach” to the discussions. The third round of talks is expected to take place next Saturday in Muscat.

Tehran and Washington have had no diplomatic relations since shortly after Iran's 1979 Islamic revolution. Since returning to office in January, US President Donald Trump has revived a “maximum pressure” campaign of sanctions against Iran. In March, he wrote to Iran's supreme leader Ayatollah Ali Khamenei urging renewed nuclear talks while also warning of military action if diplomacy failed.

Iran's Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) expressed support for the nuclear negotiations, describing them as a “sovereign tool” to serve national interests and revitalise the economy.

It stressed the importance of continuing negotiations, saying that these diplomatic efforts “could lead to the lifting of sanctions, reducing economic burdens and establishing deeper engagement with the global economy”.

“A successful outcome could attract investment, encourage technology transfer and enhance Iran’s role in the international economy,” it said.

Italian police officers stand near the Omani embassy in Rome where a second round of nuclear talks between Iran and the United States has been held. AFP

Samad Hassanzadeh, head of ICCIMA, praised the talks that have “already bolstered” public and business confidence. He also suggested involving economic experts in tandem with political negotiators to “better integrate” diplomacy with economic objectives.

“While we hope for favourable outcomes in the negotiations, the domestic economy must not remain stagnant in anticipation. We urge the administration to carry out economic reforms concurrently with the talks,” he said.

With Iran's previous nuclear deal with world powers, the 2015 Joint Comprehensive Plan of Action, set to expire in October, the pressure is on Tehran to reach a new agreement on curtailing its nuclear programme before sanctions are reimposed.