The U.S. and Iran resume direct talks amid shifting foreign policy under the Trump Administration. The Tehran Government proposes a regional enrichment plan involving neighbouring countries as a concession on oversight of its ongoing nuclear enrichment programme.
According to recent reports, after four rounds of US-Iran direct talks held in Muscat and Rome under Oman’s mediation during April 2025, direct talks have grabbed global headlines but achieved little progress.
This month, U.S. President Donald Trump demanded the “complete dismantlement” of Iran’s nuclear program, a stance firmly rejected by Tehran.
The special envoy to the Middle East Steve Witkoff’s brief acceptance of Iran enriching uranium up to 3.67% followed by a swift reversal insisting, “A deal with Iran will only be completed if it is a Trump deal”, adds to the uncertainty.
Secretary of State Marco Rubio weighed in and suggested that Iran should import enriched uranium for its civilian nuclear power needs instead of enriching it themselves.
He warned that even low-level enrichment at 3.67% can quickly be ramped up to weapons-grade levels, highlighting that only countries with nuclear weapons enrich uranium.
Iran, in response, has accused Washington of sending mixed signals. Foreign Minister Abbas Araghchi emphasized that any new agreement must honour Iran’s right to peaceful nuclear technology under the NPT, calling on the international community for fairness and mutual respect.
Despite President Trump claiming a proposal was sent to Tehran, Araghchi stated on X that Iran has received no official offer and stressed that its right to peaceful uranium enrichment is non-negotiable.
IAEA report published in February 2025 says that Iran has enriched uranium to 60%, surging to 274.8 kg, nearing weapons-grade levels.
The Iran Government has proposed a regional uranium enrichment consortium including Saudi Arabia and the UAE to build transparency. The plan offers a shared oversight, aiming to show Iran’s alleged commitment to peaceful uranium enrichment.
Iran’s diplomatic outreach hasn’t stopped there. President Ebrahim Raisi has also dispatched envoys to Saudi Arabia and Qatar, indicating a pivot in its diplomacy. Once marked by hostility—especially after Saudi Arabia cut ties with Tehran in 2016— the two nations have started exploring diplomatic normalisation since the outbreak of the Israeli Government’s ongoing military offensive against Palestinian civilians in Gaza.
Discussions in Riyadh focused on restoring full diplomatic ties and enhancing security cooperation, while talks in Doha revolved around energy and economic collaboration.
This shift is not just about optics. When the Trump administration unilaterally withdrew from the 2015 nuclear deal, it triggered a cascade of economic fallout in Iran.
The reimposed U.S. sanctions—under the “maximum pressure” strategy—crippled key sectors, especially oil exports, which are the backbone of Iran’s economy. By late 2018, the country’s GDP had contracted sharply, and oil exports plummeted from over 2 million barrels per day to under 500,000.
The sanctions also sparked a currency crisis, with the Iranian Rial hitting record lows against the dollar, wiping out purchasing power and fuelling inflation. The economic isolation reshaped Iran’s trade ties and deepened domestic discontent.
Tehran’s Gulf neighbours are not just diplomatic partners but are lifelines for trade, investment, and regional legitimacy.
With Iran’s economy battered by sanctions—its oil exports plunging from 2.5 million barrels per day in 2018 to under 500,000 in 2022—rebuilding regional trust has become a strategic necessity. Tehran appears to be adopting a longer-term diplomatic approach, seeking normalisation among regional partners by proposing cooperative initiatives such as joint uranium enrichment and maritime security.
The Gulf Cooperation Council (GCC) appears to have responded with cautious optimism.
Oman continues to play the role of trusted mediator. Meanwhile, Gulf countries like Saudi Arabia, and UAE, driven by Vision 2030 like agenda—are prioritizing regional stability and economic diversification.
While Democrats allege to have historically favoured diplomacy—as seen with Obama’s 2015 JCPOA deal—Republicans have taken an aggressive posture, with Trump pulling out of the agreement in 2018 and hinting at possible military action if Iran doesn’t comply.
While the U.S. remains a key player, Gulf states have increasingly diversified their alliances, deepening ties with China, Russia, and India—evident in China’s pivotal role in the 2023 Saudi-Iran rapprochement.
