Washington, DC : The ongoing diplomatic engagements between the United States and Iran have hit a severe impasse following Tehran's rigid demand for the immediate unfreezing of capital at the very start of the process. According to a report by The Jerusalem Post, the diplomatic deadlock stems from Iran's insistence on the release of "liquid cash" from the billions of dollars in frozen assets, already in the very first phase of the agreement.
This gridlock has emerged despite intense backchannel diplomacy aimed at breaking the geopolitical stalemate. Two sources familiar with the developments informed The Jerusalem Post that international intermediaries have spent recent days attempting to broker a compromise on the contentious issue.
However, these diplomatic interventions have yielded little progress, as the Iranian negotiators have refused to budge and continue to demand the release of the funds in Phase A as part of the framework agreement, even before taking any concrete steps on the ground.
This uncompromising stance from Tehran has met with a stonewall response from Washington, which refuses to offer upfront financial concessions. Senior US officials remain firm that the US will not unfreeze any funds at the outset without a significant Iranian move on the nuclear issue and the Strait of Hormuz.
Despite this deep, fundamental disagreement over the immediate unfreezing of frozen assets, US President Donald Trump announced that diplomatic negotiations with Iran are progressing positively, though he cautioned that a final agreement remains uncertain.
Concurrently, Trump declared Washington's intention to take possession of Iran's enriched uranium. Speaking at the White House, the US President described the ongoing discussions with Tehran as going "very well", though he acknowledged there was no guarantee of success.
"It might not happen, you know? Who knows," Trump remarked regarding a potential pact, before adding, "But if it happens, it could happen over the weekend." He further noted, "Anything can happen when you're dealing with Iran."
Turning to maritime security, which remains a key sticking point in the diplomatic deadlock, Trump asserted that the strategic Strait of Hormuz would reopen "immediately upon signing" a memorandum of understanding with Iran, expressing total confidence that maritime traffic through the vital waterway would resume swiftly.
"It will open up quickly," Trump said of the transport route, adding, "We've already had our mine sweepers there." When questioned about Iran's stockpile of enriched uranium, Trump reiterated a firm desire to secure the material, arguing that only the United States and China possessed the necessary capabilities to handle it.
"I want to get it," Trump stated, before asserting, "We will go get it." While these fragile negotiations continue at the leadership level, the regional security landscape remains highly volatile following a fatal strike at Kuwait International Airport.
This airport strike marks the first deadly incident in the Gulf since the April 8 ceasefire took effect, leaving one person dead and 63 others injured. The Ministry of External Affairs (MEA) confirmed that the deceased was an Indian citizen and strongly condemned the strike on civilian infrastructure, stating, "We again call on all parties to cease such attacks."
Detailing the offensive, Kuwait Defence Ministry spokesman Saud Abdulaziz Al-Atwan said 30 ballistic missiles and drones were launched in what he described as a "heinous Iranian aggression" that caused "significant material damage to the building."
Kuwait's state news agency reported that operations were temporarily suspended after Terminal One was struck, though services later resumed gradually. In response to the international outcry, Iran's Islamic Revolutionary Guard Corps (IRGC) has rejected allegations of responsibility, with an IRGC spokesperson claiming the destruction was caused by a malfunction of the US-made Patriot air defence system rather than an Iranian attack.
The denial follows a sharp rebuke from former Qatari Prime Minister Sheikh Hamad bin Jassim bin Jaber Al Thani, who condemned the strikes on Gulf states as "astonishing" and "unjustifiable" on X, while urging regional nations to adopt a unified stance.
Tehran has consistently defended its strikes as direct retaliation for Gulf states allegedly allowing the United States to launch military operations against Iranian targets from their territory. While the IRGC maintained it only targeted the Ali Al Salem Air Base in Kuwait and the headquarters of the US Fifth Fleet in Bahrain in response to aggression involving an Iranian tanker and Qeshm Island, US Central Command (CENTCOM) stated it had "successfully defeated" the Iranian missile and drone attacks.
According to CENTCOM, "Two Iranian missiles fired at Kuwait fell short or broke apart en route, and three missiles launched at Bahrain were immediately intercepted by US and Bahrain air defense forces." CENTCOM later posted on X, "All Iranian attacks on American forces failed," while Bahraini authorities separately reported intercepting three missiles and several drones.
Amid these sweeping regional hostilities, a parallel diplomatic track managed to yield progress. In a significant breakthrough, Israel and Lebanon have found common ground on "the implementation of a ceasefire." According to a joint statement released after the latest round of US-mediated talks on Wednesday, this truce remains strictly conditional on "a complete cessation" of Hezbollah fire and the removal of all Hezbollah operatives from southern Lebanon.
This development follows recent warnings from the Israeli government regarding a potential escalation of its actions in Lebanon, a friction point that had threatened to derail the parallel US-Iran talks.