Talks between the United States and Iran remain unresolved as Tehran pushes for sanctions relief and the release of frozen assets, while fighting between Israel and Hezbollah escalates in Lebanon, Al Jazeera reported Sunday.
Iranian officials said a deal has not yet been finalized and proposals are still being exchanged through Pakistani mediators and other regional actors.
The main sticking points include Iran’s demand for the immediate release of frozen assets, sanctions relief for its oil and petrochemicals sector, and a proposed reconstruction fund worth about $300 billion.
Washington has not committed to those demands, with U.S. officials insisting that any relief should be gradual and tied to performance.
The talks come as the Strait of Hormuz remains a key risk for energy markets. Iran’s military reasserted control over the waterway and warned that foreign commercial and military vessels must comply with its rules for passage.
The U.S. military said it had disabled a Gambia-flagged ship attempting to sail toward an Iranian port, while Tehran accused Washington of undermining diplomacy by continuing its naval blockade.
Analysts warned that even if the U.S. and Iran reach a deal, shipping through the Strait of Hormuz may not return to fully predictable conditions, with access likely to remain more politicized.
Meanwhile, tensions in Lebanon continued to rise after Israeli forces expanded ground operations beyond the Litani River and pushed toward the city of Nabatieh.
Lebanon’s Prime Minister Nawaf Salam accused Israel of pursuing a “scorched-earth policy” in the country’s south and called for a swift ceasefire.
Lebanon’s Health Ministry said Israeli attacks have killed at least 3,371 people and wounded more than 10,000 others since March 2.
Hezbollah claimed multiple attacks on Israeli military positions, including drone and missile strikes on targets in northern Israel and southern Lebanon.
Israeli authorities tightened security restrictions near the border with Lebanon, closing schools in several northern communities and limiting public gatherings.
U.S. Defense Secretary Pete Hegseth said Washington remains prepared to resume military action against Iran if negotiations fail to prevent Tehran from obtaining a nuclear weapon.
