The Iranian negotiating delegation leaves for the site of talks with the United States, in Geneva, Switzerland, February 26, 2026.
Iranian Ministry of Foreign Affairs | WANA | Via Reuters
The latest round of talks between the United States and Iran failed to produce a breakthrough, with both sides agreeing to prolong negotiations, Iranian Foreign Minister Seyed Abbas Araghchi said, calling the discussions “the most intense so far.”
“Further progress has been made in our diplomatic engagement with the United States,” Araghchi said, adding that the two sides plan to engage in more “detail” on critical issues, including ending U.S. sanctions on Iran and “nuclear-related measures.”
The two sides made “significant progress” in high-stakes negotiations in Geneva, Switzerland, and agreed to meet next week to discuss technical details in Vienna, according to Oman Foreign Minister Badr Albusaidithe mediator of the talks.
Earlier this week, US President Donald Trump said Iran wanted a “deal” more than the United States, while Tehran’s refusal to commit not to develop nuclear weapons remained a major sticking point blocking the deal.
In his State of the Union In his speech earlier this week, Trump said: “They [Iran] We want to make a deal, but we haven’t heard these secret words: we will never have nuclear weapons. »
Tensions have remained high as the United States has amassed a significant military force in the Middle East, with Trump warning last week that “bad things” This would happen if Iran does not agree to a deal on the future of its nuclear program.
The third round of negotiations this week was led by US special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner, while Araghchi led the Iranian delegation.
The Wall Street Journal reported Earlier on Friday, the US team had strict demands on the Iranians, including the destruction of the three main nuclear sites at Fordow, Natanz and Isfahan, and the delivery of all remaining enriched uranium to the United States. Iranian officials have opposed these demands.
The team also called for any nuclear deal to be forever and not have sunset clauses, the newspaper reported, citing unnamed U.S. officials.
From the nuclear program to ballistic missilesIran’s nuclear program has been at the heart of the negotiations, with the United States also pressuring Tehran to curb its ballistic missile development program. But Tehran has insisted on its right to carry out uranium enrichment in the country, saying that this uranium is necessary for energy production.
Just before the latest negotiations in Switzerland, US Secretary of State Marco Rubio said Iran’s reluctance to discuss the development of intercontinental ballistic missiles was a major stumbling block.
The Trump administration also asked Tehran to stop support regional armed groups and put an end to the repression of domestic protesters.
Analysts have warned of the risks of a military clash in the region if the two sides fail to make a significant breakthrough, which could trigger unrest across the Middle East and in oil markets.
“In the absence of a diplomatic breakthrough in the coming days, the United States risks entering a military confrontation with significant potential for escalation,” said Michael Hanna, director of the International Crisis Group, a Brussels-based think tank.
Hanna also stressed that Washington’s priorities remain unclear as Washington presents a wide-ranging list of demands on Tehran: “It is not clear whether the administration itself has a fixed idea on the desired outcome.”
Among Tehran’s priorities in the negotiations is lifting sanctions that have hobbled its economy and fueled a currency crisis, sparking widespread protests against the Islamic Republic in December.
The outcome of this week’s indirect talks will be key to the direction of oil prices, as traders assess potential supply issues in the event of an escalation of hostilities.
WTI Futures were down 35 cents, or 0.24%, Friday at $64.97 a barrel. Brent Crude futures lost 38 cents, or 0.30%, to $70.54 a barrel.
“The market may wait for a full reaction until the scale of potential US action against Iran becomes clearer,” said Warren Patterson, head of commodities strategy at ING Bank, predicting that any “targeted and brief” strike avoiding energy infrastructure – such as those seen in June last year – with limited retaliation from Iran could lead to a short-lived rise in oil prices.
But in the case of longer-term action by Washington coupled with more aggressive retaliation by Tehran, oil prices will likely remain high due to supply risks.
Traders will also be watching the OPEC+ decision on oil production for April this weekend.
“If we are to see a de-escalation between the US and Iran, this should allow weaker fundamentals to feed through into lower lump prices, particularly if OPEC+ resumes its supply increases starting in April, which we believe it will agree to this weekend,” Patterson said.
