We're not there yet: Rubio says more work needed as Iran cites deep differences

Pakistan Army chief Asim Munir arrived in Tehran as Pakistan and Qatar stepped up mediation with Iran and the United States. The renewed push comes amid unresolved disputes over uranium and the Strait of Hormuz, with markets remaining on edge.

In Short

• Pakistan and Qatar intensified mediation as fresh talks opened in Tehran
• Rubio said progress was limited and warned major disputes remain unresolved
• Iran called differences with Washington deep and ruled out quick progress

Pakistan Army chief Field Marshal Asim Munir arrived in Tehran on Friday as diplomatic efforts to end the Iran conflict intensified, while US Secretary of State Marco Rubio cautioned that negotiations were still far from a breakthrough despite some progress in talks with Tehran.

“We’re not there yet,” Rubio told reporters after a Nato ministers’ meeting in Sweden, underscoring the uncertainty hanging over the latest diplomatic push involving Pakistan, Qatar and the United States.

Iran, however, signalled that major hurdles remain, with foreign ministry spokesman Esmaeil Baghaei describing differences with Washington as deep and significant.

PAKISTAN, QATAR STEP UP MEDIATION

Munir’s visit came as Pakistan expanded its mediation role between Tehran and Washington. Earlier in the day, Pakistani Interior Minister Syed Mohsin Naqvi held another round of talks in Tehran with Iranian Foreign Minister Abbas Araqchi, according to Iran’s semi-official Tasnim news agency.

At the same time, Qatar dispatched a negotiating team to the Iranian capital in coordination with the United States, a source familiar with the matter told Reuters.

The renewed diplomacy comes six weeks into a fragile ceasefire after months of conflict involving Iran, the United States and Israel.

RUBIO WARNS OF UNRESOLVED ISSUES

Rubio acknowledged that negotiators had narrowed some gaps but stressed that critical disagreements remained unresolved.

“There’s been some progress. I wouldn’t exaggerate it. I wouldn’t diminish it,” Rubio told reporters. "There's more work to be done. We're not there yet. I hope we get there."

Among the key sticking points are Iran’s stockpile of highly enriched uranium and Tehran’s control over the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas supplies pass.

Rubio reiterated Washington’s opposition to Iran’s proposed tolling system for ships using the strait, calling the idea “unacceptable”.

“We’re dealing with a very difficult group of people, and if it doesn’t change, then the president’s been clear he has other options,” he added.

He also said the US had not asked Nato for military assistance in the Strait of Hormuz, though contingency planning remained necessary if Iran refused to reopen the waterway fully.

TEHRAN SIGNALS NO IMMEDIATE BREAKTHROUGH

Despite the flurry of diplomacy, Iran suggested a deal was not imminent.

Baghaei said diplomacy “takes time” and indicated the talks would stall if Washington insisted on detailed discussions over Iran’s highly enriched uranium stockpile.

He also said nuclear issues were currently not part of active discussions.

Iran has so far resisted US demands to transfer its near-weapons-grade enriched uranium abroad. Two senior Iranian sources told Reuters that Supreme Leader Ayatollah Mojtaba Khamenei had directed officials not to send the stockpile out of the country.

OIL MARKETS, GLOBAL ECONOMY REMAIN ON EDGE

The continuing uncertainty over negotiations has kept global markets volatile.

Oil prices climbed again on Friday, while the US dollar hovered near a six-week high amid fears that disruption in the Strait of Hormuz could deepen the global energy crisis and fuel inflation worldwide.

Although major US stock indexes rose, Treasury yields dipped as investors assessed the prospects for a near-term agreement.

WAR AND EARLIER DEVELOPMENTS

The current conflict escalated after US-Israeli airstrikes began on February 28. Iran subsequently launched attacks targeting Gulf states hosting American military bases, while fighting also reignited between Israel and Hezbollah in Lebanon.

Thousands have been killed in Iran and Lebanon since the war began.

The United States and Israel say their objectives include dismantling Iran’s nuclear and missile programmes and curbing Tehran’s support for regional militias. Iran, however, has retained its enriched uranium stockpile as well as missile and drone capabilities.

Tehran submitted its latest proposal to Washington earlier this week, though Iranian terms reportedly repeated demands previously rejected by US President Donald Trump, including sanctions relief, compensation for war damage, access to frozen assets and recognition of Iranian control measures in the Strait of Hormuz.

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