US and Iran remain at odds over deal process; Trump rules out sanctions relief

Despite speculation about a possible deal between the United States and Iran, officials from both countries continue to issue contradictory statements, underscoring a prolonged diplomatic impasse.

Speaking at a cabinet meeting on May 27 (local time), President Donald Trump reaffirmed that Iran would not receive sanctions relief from the negotiations, regardless of Tehran's demands. “We are not talking about lifting sanctions or giving money,” Trump said.

In an interview with PBS News earlier that day, the U.S. leader repeated the assertion that Iran must give up its enriched uranium stockpile. “They will give up the highly enriched uranium, but not in exchange for sanctions relief. No, not at all,” Trump stated.

These remarks follow Trump's statement on May 24, where he said the enriched uranium “will have to be handed over to us immediately to be brought back to the U.S. and destroyed, or better yet, cooperate with Iran to destroy it on-site.” Tehran, however, insists it will not surrender its estimated 440-kilogram nuclear material stockpile.

More than a month ago, Trump claimed Iran had agreed to let the U.S. retrieve uranium at a “slow pace,” but Iran quickly denied this.

The verbal sparring over the future of Iran's nuclear program is just one of many sticking points in ceasefire negotiations, as the U.S. and Iran seek to end a conflict that began more than 12 weeks ago. The two sides also disagree on continued U.S. sanctions, the blockade of Iranian ports, and control of the Strait of Hormuz—a vital commercial artery.

Diplomatic gridlock

During the cabinet meeting, Trump reiterated several claims made since the war broke out, including that Iran's navy and air force have been neutralized. He also depicted Iran as an enemy that has succumbed to U.S. military power. “They very much want a deal,” he said of Iran, but acknowledged the current talks have not met expectations: “We are not satisfied, but we will be satisfied. Either that, or we have to finish the job,” hinting at further military action.

The U.S. and Israel launched a war against Iran on February 28 without direct provocation, killing Supreme Leader Ali Khamenei, several senior officials, and hundreds of civilians. In response, Iran carried out missile and drone strikes on Israel and across the region, and shut down the Strait of Hormuz—through which over 20% of the world's oil trade passes. The blockade has driven up energy prices and stoked inflation in the U.S.

Trump emphasized that Iran cannot “wait longer” than him, viewing the blockade as a tactic to weaken domestic support ahead of the midterm elections. “I don't care about the midterm elections. People understand that. They know it's very simple: Iran cannot have nuclear weapons,” he said.

He also rejected the possibility of a short-term deal that would allow Iran and Oman to jointly control the strait, even hinting at military action if Oman were to do so. “Oman will behave like other countries, or we will blow them up. They understand that. They'll be fine.”

Although Trump argues that the deaths of Khamenei and other leaders demonstrate a shift in leadership, the war has not collapsed Iran's governance system. Khamenei's son Mojtaba has succeeded him, and the Islamic Revolutionary Guard Corps (IRGC) remains central to the political and military apparatus.

A temporary ceasefire took effect on April 8, but efforts to resolve the crisis have stalled, despite Trump's claims that Iran is weak and eager for a deal. Last week, Trump announced a deal was being finalized after speaking with regional leaders, but it remains unclear which side has made concessions.

U.S. denies report of Hormuz reopening memorandum

On May 27, the White House denied an Iranian state media report detailing a memorandum of understanding (MOU) to reopen the Strait of Hormuz and end the war. According to the Islamic Republic of Iran Broadcasting (IRIB), the draft agreement required the U.S. to lift the naval blockade of Iran in exchange for allowing shipping through Hormuz at pre-war levels within 30 days. The report also said military vessels were not included in the deal, and that management of the strait—including ship inspections and fees—would remain under Iran, in coordination with Oman.

However, the White House quickly dismissed the report: “Reports from controlled Iranian media are untrue and the MOU they revealed is completely fabricated. Do not believe anything from Iranian state media. TRUTH MATTERS.” The White House did not specify which points were false and offered no details on a potential agreement with Iran.

Trump insisted the U.S. would not accept Iranian control of Hormuz: “We will monitor, but no one will control it. That is part of the negotiation.” While some early reports suggested the U.S. would release frozen Iranian assets, Trump stressed Washington would not lift sanctions immediately: “When they behave and do the right thing, we will let them get their money back.”