Iranian and American negotiators resumed their talks on Friday in Rome to resolve a decades-long dispute over Tehran’s nuclear ambitions, despite a warning by Iran’s Supreme Leader that reaching a new deal may be impossible due to conflicting red lines set by both sides.

The negotiations took place as CNN reported on Tuesday, citing informed U.S. officials, that new intelligence indicates Israel is preparing to strike Iranian nuclear facilities.

The stakes are high for both sides. U.S. President Donald Trump wants to limit Tehran’s ability to produce a nuclear weapon that could spark a regional arms race. Iran, on the other hand, seeks relief from crippling sanctions imposed on its oil-dependent economy.

Oman’s Foreign Minister announced the conclusion of the fifth round of talks between the Iranian and American delegations in Rome on Friday, noting that “some progress” had been made.

Badr Al-Busaidi posted on X (formerly Twitter): “The fifth round of talks between Iran and the United States ended today in Rome with some progress, though not decisive.” He expressed hope that the “outstanding issues” would be clarified in the coming days.

Iranian Foreign Minister Abbas Araghchi said on Friday there was potential for progress in the nuclear talks with the U.S. after Oman, which is mediating the negotiations, submitted several proposals. He added that the talks were complex and required more discussion.

After concluding the fifth round of talks, Araghchi said: “We just finished one of the most professional negotiation rounds.”

Araghchi and Trump’s Middle East envoy Steve Witkoff held the fifth round of talks through Omani intermediaries, despite both Washington and Tehran expressing hardline positions in their public statements regarding Iran’s uranium enrichment.

Although Iran insists the talks are indirect, U.S. officials noted that the discussions — including the most recent round on May 11 in Oman — were “both direct and indirect.”

Araghchi, who arrived in Rome with his deputies, wrote on X: “… Zero nuclear weapons = deal. Zero enrichment = no deal. Time to decide.”

White House spokesperson Karoline Leavitt told reporters yesterday that Trump believes the negotiations with Iran are “heading in the right direction.”

Tehran and Washington both say they prefer diplomacy to resolve the crisis, but they remain deeply divided over several red lines that must be overcome to reach a new nuclear deal and avoid future military action.

U.S. Secretary of State Marco Rubio said Washington is working on a deal that allows Iran to have a civilian nuclear program without uranium enrichment, acknowledging that achieving such an agreement “will not be easy.”

Iran’s Supreme Leader Ayatollah Ali Khamenei, who has the final say on state affairs, rejected Washington’s demands to stop Iran’s uranium enrichment, calling them “exaggerated and outrageous,” and expressed doubt that the talks would yield results.

One of the remaining obstacles is Iran’s refusal to ship its entire stockpile of highly enriched uranium abroad or to engage in discussions about its ballistic missile program.

Iran says it is willing to accept some limits on uranium enrichment, but it needs unequivocal guarantees that Washington will not withdraw from any future deal.

Trump, who re-imposed a “maximum pressure” policy on Tehran in February, had previously withdrawn from the 2015 nuclear deal between Iran and six world powers during his first term in 2018. He reimposed sweeping U.S. sanctions that crippled Iran’s economy.

Iran responded by accelerating uranium enrichment beyond the limits set in the 2015 agreement.

Wendy Sherman, who previously served as U.S. Under Secretary of State for Political Affairs and led the U.S. negotiating team in the 2015 deal, said it is impossible to persuade Iran to dismantle its uranium enrichment program, which Tehran sees as a matter of sovereignty.

She told Reuters, “I don’t believe it’s possible to reach a deal with Iran where they literally dismantle their program and give up enrichment, although that would be ideal.”

The cost of failed talks could be steep. While Tehran says its nuclear activity is for peaceful purposes, its arch-enemy Israel insists it will never allow Iran to obtain nuclear weapons.

A source told Reuters that Israel’s Minister of Strategic Affairs and the head of Mossad intelligence agency would also be in Rome for talks with the U.S. negotiation team.

Araghchi warned that Washington would bear legal responsibility in the event of an Israeli attack on Iran’s nuclear facilities, following CNN’s report about Israel’s potential preparations for strikes.

With rising tension over uranium enrichment threatening the talks, three Iranian sources said the Islamic Republic’s leadership lacks a clear contingency plan if efforts to resolve the nuclear dispute collapse.

Backup Plan Amid Clashing Red Lines

Three Iranian sources told Reuters on Tuesday that Iran’s leadership has no clear alternative plan should efforts to resolve the decades-long nuclear standoff fail, as negotiations between Washington and Tehran stall amid growing tensions over uranium enrichment.

The sources said Iran might turn to China and Russia as a "backup plan" if the stalemate continues. However, given the trade war between Beijing and Washington and Moscow’s preoccupation with the war in Ukraine, Tehran’s alternative plan appears fragile.

A senior Iranian official said: “The backup plan is to continue the pre-negotiation strategy. Iran will avoid escalating tensions and is prepared to defend itself... The strategy also includes strengthening ties with allies like Russia and China.”

After four rounds of talks aimed at curbing Iran’s nuclear program in exchange for sanctions relief, many obstacles remain.

Two Iranian officials and a European diplomat said Tehran refuses to ship all its highly enriched uranium stockpile abroad or to discuss its ballistic missile program.

Distrust on both sides and President Donald Trump’s decision to withdraw from the 2015 deal with world powers have increased Iran’s demand for guarantees that Washington won’t renege on a future agreement.

Adding to Tehran’s challenges are mounting crises within Iran’s religious establishment — including energy and water shortages, currency devaluation, military losses among regional allies, and rising fears of an Israeli attack on nuclear sites — all worsened by Trump’s hardline policies.

The sources said that with Trump’s quick revival of the “maximum pressure” campaign on Tehran since February, including tightened sanctions and military threats, Iran’s leadership has “no better option” than a new deal to avoid domestic economic chaos that could threaten the regime.

Protests in recent years over social repression and economic hardship — met with harsh crackdowns — have exposed the Islamic Republic’s vulnerability to public anger and led to new waves of Western human rights sanctions.

The second Iranian official, also speaking anonymously due to the sensitivity of the issue, said: “Without lifting sanctions to allow free oil sales and access to funds, Iran’s economy cannot recover.”

Iran’s Foreign Ministry did not respond to a request for comment.

Sherman reiterated that dismantling Iran’s nuclear program and halting enrichment is unrealistic. “That means they’ll reach a dead end, and we face the possibility of war — which, frankly, I don’t think President Trump wants, as he campaigned as a president of peace.”

Even if enrichment disputes are resolved, lifting sanctions remains risky. The U.S. prefers a gradual rollback of nuclear-related sanctions, while Tehran demands the immediate removal of all restrictions.

Since 2018, dozens of key Iranian economic institutions — including the Central Bank and National Oil Company — have faced sanctions for “supporting terrorism or weapons proliferation.”

When asked about Iran’s options if talks fail, Sherman said Tehran would likely continue “circumventing sanctions and selling oil — mostly to China, possibly to India and others.”

China, Iran’s main oil buyer despite sanctions, has helped Tehran avoid economic collapse. But Trump’s pressure on Chinese businesses and tankers threatens this trade.

Analysts warn that Chinese and Russian support has limits. China insists on steep discounts on Iranian oil and may push for lower prices due to weak global demand.

If the talks collapse — a scenario both Tehran and Washington hope to avoid — neither Beijing nor Moscow can shield Iran from unilateral U.S. and European sanctions.

France, Britain, and Germany — though not directly involved in the U.S.-Iran talks — warned they would reinstate UN sanctions if no deal is reached soon.

Under the UN resolution for the 2015 nuclear deal, the three European countries have until October 18 to activate the so-called “snapback mechanism.”

According to diplomats and a document seen by Reuters, the three nations could trigger the process by August if no substantive deal is reached by then.

Israel Prepares to Strike Iranian Nuclear Facilities

CNN reported on Tuesday, citing informed U.S. officials, that new intelligence indicates Israel is preparing to strike Iranian nuclear sites.

The report added that it remains unclear whether Israeli leaders have made a final decision, noting internal disagreement within the U.S. government over whether Israel will ultimately carry out the attacks.

Reuters has not yet confirmed the report. The U.S. National Security Council did not immediately respond to a request for comment.

The Israeli embassy in Washington, the Israeli Prime Minister’s Office, and the Israeli military also declined to comment.

These developments contributed to oil prices rising more than one percent amid fears that potential strikes would impact the...

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