Amid Negotiations, Iran Seeks Sanctions Relief Without Giving Trump A Diplomatic Triumph

Last Updated:May 27, 2026, 09:47 IST

Iran is pushing for sanctions relief and access to frozen funds while resisting major concessions on its nuclear programme, without allowing Trump to claim any credit.

Iran is attempting to strike a delicate balance in its ongoing negotiations with the United States, seeking urgent economic relief for its struggling economy while resisting concessions that could allow US President Donald Trump to claim a political win, according to a report by The Wall Street Journal.

The report, citing Iranian officials and Arab mediators, said Tehran’s strategy revolves around securing access to frozen funds and reopening oil trade channels without fully dismantling its nuclear programme.

The negotiations continued despite fresh military tensions between the two sides in and around the Strait of Hormuz.

According to the report, Iran largely brushed aside an overnight confrontation with US forces in which several members of the Islamic Revolutionary Guard Corps (IRGC) were reportedly killed.

Tehran chose to stay engaged in diplomatic talks even after the exchange of fire.

The report said one of the central demands from Tehran is the release of billions of dollars in frozen Iranian assets.

Mediators from countries including Qatar, Egypt and Pakistan are reportedly attempting to bridge gaps between both sides.

Officials cited in the report claimed that discussions in Qatar focused heavily on releasing nearly $24 billion, roughly a quarter of Iran’s frozen overseas funds.

Iran is reportedly nearing a compromise under which about half of that amount could be released during the initial stages of an agreement.

The Associated Press, citing regional and US officials, separately reported that sanctions relief and the release of frozen Iranian funds could be negotiated during a 60-day implementation period if a broader agreement moves ahead.

The AP report also said the US may permit Iran to resume oil sales through sanctions waivers as part of a phased arrangement.

Iran’s economy has been under severe pressure due to sanctions, war-related disruptions and blockades.

According to the WSJ report, deteriorating living standards and soaring inflation had already triggered nationwide protests earlier this year.

The report added that more pragmatic factions within the Iranian establishment are now pushing for a deal before the economic crisis worsens further and potentially sparks another round of unrest.

MILITARY FLASHPOINTS AND THE TALKS

Even as negotiations continued, tensions remained high in the Gulf region.

The WSJ report said the US Central Command struck Iranian speedboats allegedly laying mines in the Strait of Hormuz late Monday.

Iran reportedly retaliated by firing at US aircraft, prompting further American strikes targeting missile-launch sites inside Iran.

The AP report similarly noted that the US military described the operations as “self-defence" strikes meant “to protect our troops from threats posed by Iranian forces," while maintaining that restraint was being exercised during the ceasefire period.

Iran, however, condemned the strikes as a violation of the ceasefire.

“The Islamic Republic of Iran will leave no act of aggression unanswered," Iran’s Foreign Ministry said, according to the AP report.

The WSJ report quoted Iran’s Foreign Ministry as saying, “Without a doubt, the Islamic Republic of Iran will not leave any evil unanswered and will not hesitate to defend the Iranian nation."

Despite the flare-up, Iran’s top negotiator, Mohammad-Bagher Ghalibaf, reportedly remained in Qatar for discussions before returning to Tehran after consultations with Qatari officials. Iranian authorities allegedly delayed announcing IRGC casualties from the US strikes to avoid jeopardising the negotiations.

NUCLEAR PROGRAMME REMAINS CORE STICKING POINT

A major obstacle in the talks remains Iran’s refusal to completely dismantle its nuclear programme.

The WSJ report said Tehran continues resisting US pressure to surrender its enriched uranium stockpiles outright.

However, Trump appeared to soften his earlier stance, saying the uranium could instead be “destroyed in place or, at another acceptable location" under supervision from the International Atomic Energy Agency.

The AP report said Iran currently possesses more than 440 kilograms of uranium enriched to 60 per cent purity, a level close to weapons-grade enrichment.

According to the AP, the emerging framework could involve Iran diluting part of its uranium stockpile and transferring the remainder to a third country, with Russia having offered to receive the material.

Iranian President Masoud Pezeshkian insisted Tehran was willing “to assure the world that we are not after a nuclear weapon," according to the AP report.

However, several unresolved issues remain, including whether Iran would retain the ability to enrich uranium in the future and the fate of its missile programme.

TRUMP FACES PRESSURE FROM REPUBLICANS

The WSJ report said Trump’s diplomatic approach has also drawn criticism from hawkish Republicans in the United States.

Senator Ted Cruz and other conservatives reportedly criticised the proposed framework as too similar to the nuclear agreement negotiated under former President Barack Obama, a deal Trump had scrapped during his first term.

Responding to criticism, Trump wrote on Truth Social that the proposed agreement was “the exact opposite."

Trump floated the idea of eventually expanding the Abraham Accords framework to include Iran if a peace arrangement is reached.

The proposal reportedly surprised several Middle Eastern leaders, including officials in Qatar and Saudi Arabia.

News world Amid Negotiations, Iran Seeks Sanctions Relief Without Giving Trump A Diplomatic Triumph

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