Iran poised to dismiss nuclear proposal presented by US, Iranian diplomat says

Official says offer does not address Tehran’s demand to be able to continue enriching uranium, nor does it clearly set out a plan to lift sanctions

Iranian Foreign Minister Abbas Araghchi in Cairo on June 2, 2025 (AFP)
Iranian Foreign Minister Abbas Araghchi in Cairo on June 2, 2025 (AFP)

DUBAI (Reuters) — Iran is poised to reject a US proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, dismissing it as a “non-starter” that fails to address Tehran’s interests or soften Washington’s stance on uranium enrichment.

“Iran is drafting a negative response to the US proposal, which could be interpreted as a rejection of the US offer,” the senior diplomat, who is close to Iran’s negotiating team, told Reuters.

The US proposal for a new nuclear deal was presented to Iran on Saturday by Omani Foreign Minister Sayyid Badr Albusaidi, who was on a short visit to Tehran and has been mediating talks between Tehran and Washington.

After five rounds of discussions between Iranian Foreign Minister Abbas Araghchi and President Donald Trump’s Middle East envoy Steve Witkoff, several obstacles remain.

Among them are Iran’s rejection of a US demand that it commit to scrapping uranium enrichment and its refusal to ship abroad its entire existing stockpile of highly enriched uranium — possible raw material for nuclear bombs.

The United States, Israel and Western countries have long accused Iran — which vows to destroy Israel — of seeking nuclear weapons, a charge Tehran has repeatedly denied, insisting it needs uranium for civilian power production. However, Iran has been enriching uranium up to 60%, a level that has no civilian uses and is just below weapons grade.

It has also obstructed international inspectors from checking its nuclear facilities, and has expanded its ballistic missile capabilities, while several officials have warned that it could pursue the bomb.

Washington’s proposal for a deal came after leaked UN reports this weekend said Iran had stepped up production of highly enriched uranium and carried out secretive nuclear activities.

Vehicles of delegations leave the Omani embassy after a fifth round of nuclear talks between Iran and the United States, in Rome on May 23, 2025. (Filippo MONTEFORTE / AFP)

“In this proposal, the US stance on enrichment on Iranian soil remains unchanged, and there is no clear explanation regarding the lifting of sanctions,” said the diplomat, who declined to be identified due to the sensitivity of the matter.

Araghchi said Tehran would formally respond to the proposal soon.

Tehran demands the immediate removal of all US-imposed curbs that impair its oil-based economy. But the US says nuclear-related sanctions should be removed in phases.

Dozens of institutions vital to Iran’s economy, including its central bank and national oil company, have been blacklisted since 2018 for, according to Washington, “supporting terrorism or weapons proliferation.”

Trump’s revival of “maximum pressure” against Tehran since his return to the White House in January has included tightening sanctions and threatening to bomb Iran if the negotiations yield no deal.

During his first term in 2018, Trump ditched Tehran’s 2015 nuclear pact with six powers and reimposed sanctions that have crippled Iran’s economy. Iran responded by escalating enrichment far beyond the pact’s limits.

Under the deal, Iran had until 2018 curbed its sensitive nuclear work in return for relief from US, EU and UN economic sanctions.

The diplomat said the assessment of “Iran’s nuclear negotiations committee,” under the supervision of Supreme Leader Ayatollah Ali Khamenei, was that the US proposal was “completely one-sided” and could not serve Tehran’s interests.

In this photo, released by the Atomic Energy Organisation of Iran, International Atomic Energy Agency (IAEA) Director General, Rafael Mariano Grossi, center, attends a meeting with head of the Atomic Energy Organization of Iran Mohammad Eslami, in Tehran, Iran, Thursday, April 17, 2025. (Atomic Energy Organisation of Iran via AP)

Therefore, the diplomat said, Tehran considers this proposal a “non-starter” and believes it unilaterally attempts to impose a “bad deal” on Iran through excessive demands.

Mideast tensions high

The stakes are high for both sides. Trump wants to curtail Tehran’s potential to produce a nuclear weapon that could trigger a regional nuclear arms race and perhaps threaten Israel. Iran’s clerical establishment, for its part, wants to be rid of the devastating sanctions.

Iran says it is ready to accept some limits on enrichment but needs watertight guarantees that Washington would not renege on a future nuclear accord.

Two Iranian officials told Reuters last week that Iran could pause uranium enrichment if the US released frozen Iranian funds and recognized Tehran’s right to refine uranium for civilian use under a “political deal” that could lead to a broader nuclear accord.

A handout picture provided by the Iranian presidency shows President Masoud Pezeshkian (2nd R) and the Atomic Energy Organisation of Iran (AEOI) chief Mohammad Eslami (R) during the ‘National Day of Nuclear Technology,’ in Tehran, on April 9, 2025. (Iranian Presidency / AFP)

Israel sees Iran’s nuclear program as an existential threat and says it would never allow Tehran to obtain nuclear weapons.

Araghchi, in a joint news conference with his Egyptian counterpart in Cairo, said: “I do not think Israel will commit such a mistake as to attack Iran.”

Tehran’s regional influence has meanwhile been diminished by military setbacks suffered by its forces and those of its allies in the Shi’ite-dominated “Axis of Resistance,” which includes Hamas, Hezbollah, the Houthis in Yemen, and Iraqi militias.

In April, Saudi Arabia’s defense minister delivered a blunt message to Iranian officials to take Trump’s offer of a new deal seriously as a way to avoid the risk of war with Israel.

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