US, Iran set to hold separate talks with mediators; both pessimistic about deal before midterms

[NEW YORK] Qatari mediators are expected to hold separate talks with Iranian Foreign Minister Abbas Araqchi in New York and with the US side on Monday (Sep 28) or Tuesday, an official briefed on the negotiations told Reuters.

The talks are expected to focus on an amended version of a seven-day proposal that Iran presented last week on the sidelines of the the United Nations General Assembly, said the official, who spoke on condition of anonymity.

Araqchi remains in New York after attending the General Assembly. It was not immediately clear who would represent the US side in the talks with mediators.

Iran’s seven-day plan envisages an end to all hostilities in Iran and Lebanon, the unfreezing of billions of dollars worth of Iranian assets, an end to sanctions on Iranian oil and the lifting of the US blockade on Iranian ports.

Teheran would then allow the reopening of the Strait of Hormuz, and the two sides would also resume talks on Iran’s nuclear programme.

US President Donald Trump said on Saturday he had rejected Iran’s proposal, saying Teheran wanted a swift agreement because of the crippling economic pressure it is under.

However, he also told Axios on Sunday that he expected US negotiators to engage in further talks this week.

Araqchi said on Sunday that mediators had not formally conveyed a US rejection to Teheran and that Iran was awaiting Washington’s definitive position before deciding its next steps.

“Our conditions are clear, and any move towards reopening the Strait of Hormuz is contingent on these conditions being met,” he said on Sunday, adding that only a negotiated solution could resolve the impasse.

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Pessimism about deal

Iranian officials have privately expressed pessimism about reaching a deal to end hostilities with Washington and reopen the Strait of Hormuz before US midterm elections in November, according to people familiar with the matter.

Iran and the US made little progress during talks in New York on the sidelines of the United Nations General Assembly last week and the Islamic Republic believes there is a high chance of the conflict escalating after the Nov 3 vote, according to the people, some of whom were briefed by Iranian officials.

They asked not to be named discussing sensitive matters.

Iranian officials have consistently said they are willing to pursue diplomacy but do not trust the Trump administration to abide by the terms of any agreement.

The White House has similar feelings of distrust towards Teheran and Trump has previously said he doubts any deal can be reached before the midterms.

On Monday, Trump told reporters that US representatives have been engaging with mediators, when asked about talks with Iran. He declined to describe what had been discussed.

“We are going to win,” the president told reporters in the Oval Office. “As far as I am concerned, it is going to be one way or the other. It is going to go pretty quickly.”

There will not be a deal with Iran unless issues regarding the country’s nuclear programme are addressed, according to one US official, who asked not to be identified discussing sensitive talks.

Trump is willing to give Iran sanctions relief and release frozen funds in exchange for concrete progress on nuclear issues, the official said.

The US government has told mediators it wants Iran to make firm commitments on reopening the strait this time around and to make concessions regarding its nuclear programme, said two people familiar with the matter.

The Wall Street Journal earlier reported that negotiators are pressing Iran to compromise on its nuclear programme to revive the peace talks and placate Trump on an issue he has made a top priority.

In his address to the UN General Assembly last week, Iranian President Masoud Pezeshkian said the country is not seeking to build an atomic weapon but will not give up the right to develop nuclear technology for economic purposes.

Araghchi, who met Trump’s envoys Jared Kushner and Steve Witkoff last week, has remained in the US for more discussions that will be conducted via mediators for the warring sides, one person said.

Talks involving Araghchi will take place on Monday morning local time to review recent proposals and exchange views on the current situation, the semi-official Iranian Students’ News Agency reported. No US representative will attend the meeting, it said.

The main mediators are seeking something different from the so-called memorandum of understanding signed by Iran and the US in mid-June.

That led to a ceasefire and more maritime traffic flowing through Hormuz but collapsed within about a fortnight, before the sides made substantive progress on a permanent peace deal. REUTERS, BLOOMBERG