Iran rules out nuclear concessions even if US accepts Hormuz proposal

Key Points:

• US-Iran talks at the UN General Assembly focus on sequencing: Iran demands lifting of the US economic blockade before reopening the Strait of Hormuz, while the US wants progress on the strait first, leading to a deadlock with neither side willing to move first.
• Iranian President Masoud Pezeshkian expressed willingness to negotiate and relinquish uranium enriched to 60% under international law, aiming to revive a June ceasefire understanding before the US midterm elections, contrasting with President Trump's expectation of an agreement post-elections.
• Internal Iranian divisions complicate diplomacy, with hardliners criticizing direct talks and Foreign Minister Abbas Araghchi's contact with US envoy Steve Witkoff, highlighting disputes over negotiation authorization and format within Tehran's political and security establishments.
• Both sides face domestic political constraints: Iran risks losing strategic leverage without guaranteed sanctions relief, while the US contends with congressional hawks and regional lobbying groups opposing concessions ahead of midterms, making political costs a significant barrier.
• Despite public threats and military rhetoric from both sides, diplomatic channels remain open with mediators urging dialogue; however, fundamental disagreements over sequencing, guarantees, and linked regional issues continue to stall substantive progress.