Iran and the United States have made headway in their ongoing discussions over the nuclear issue, signaling a mutual understanding of core “guiding principles.” However, as Iranian Foreign Minister Abbas Araghchi emphasized, this progress does not imply that a formal agreement is on the immediate horizon.

Following Araghchi’s statements on Tuesday, oil markets responded with a decrease in prices, as Brent crude futures dropped by over 1%. This decline reflects a reduction in regional conflict concerns, particularly given the U.S. military presence aimed at encouraging Iranian concessions.

Araghchi, speaking to Iranian media after the conclusion of talks in Geneva, noted, “Various ideas have been proposed and discussed thoroughly. In the end, we have succeeded in reaching a broad consensus on certain guiding principles.”

Meanwhile, a U.S. official shared that Iran is expected to offer detailed proposals within the next fortnight to address existing discrepancies in the nuclear discussions. “While progress has been achieved, numerous specifics remain to be resolved,” the official commented, choosing to remain anonymous.

The negotiations, which involve indirect dialogue between U.S. special envoy Steve Witkoff and Jared Kushner, senior advisor and son-in-law to former President Donald Trump, are being facilitated by Oman.

The indirect discussions between US special envoy Steve Witkoff and US President Donald Trump’s son-in-law Jared Kushner, alongside Araghchi, were mediated by Oman.

Oman’s foreign minister Badr al-Busaidi said in a post on X “much work is yet to be done”, but Iran and the US were leaving with “clear next steps”.

Just as talks began on Tuesday, Iranian state media said Iran would temporarily shut part of the Strait of Hormuz, a vital global oil supply route, due to “security precautions” while Iran’s elite Revolutionary Guards conducted military drills there.

Iran has in the past ‌threatened to shut down ‌the strait to commercial shipping if it ⁠is attacked, a move that would choke off a fifth of global oil flows and drive up crude prices.

Responding to comments by Trump that “regime change” in Iran might be the best course, the country’s Supreme Leader, Ayatollah Ali Khamenei, warned that any US attempts to depose his government would fail.

“The US president says their army is the world’s strongest, but the strongest army in the world can sometimes be slapped so hard it cannot get up,” he said in comments published by Iranian media.

Speaking at a disarmament conference in Geneva after the talks, Araghchi said a “new window of opportunity” had opened and he hoped discussions would lead to a “sustainable” solution that ensured the full recognition of Iran’s legitimate rights.

Earlier, Trump said he himself would be involved “indirectly” in the Geneva talks and that he believed Iran wanted to make a ⁠deal.

“I don’t think they want the consequences of not making a deal,” Trump told reporters aboard the US presidential plane Air Force One on ‌Monday.

“We could have had a deal instead of sending the B-2s [bombers] in to knock out their nuclear potential. And we had to send the B-2s.”

The US joined Israel last June in bombing Iranian nuclear facilities. The US and Israel believe Iran aspires to build a nuclear ‌weapon that could threaten Israel’s existence.

Since those strikes, Iran’s rulers have been weakened by street protests, suppressed at a cost of thousands of lives, against a cost of living crisis driven in part by international sanctions that have strangled Iran’s oil income.

The US has sought to expand the scope of talks to non-nuclear issues such as Iran’s missile stockpile.

Iran said it is willing only to discuss curbs on its nuclear program — in exchange for sanctions relief — and that it will not give up uranium enrichment completely or discuss its missile program.

Khamenei reiterated Iran’s position that its formidable missile stockpile is non-negotiable, and ‌missile type and range have nothing to do with the US.

A senior Iranian official told the Reuters news agency on Tuesday that the success of the Geneva talks hinged on the US not making unrealistic demands and on its seriousness in lifting the crippling sanctions on Iran.

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