U.S. and Iranian negotiators are currently in Doha for discussions primarily concerning the Strait of Hormuz. The U.S. administration argues that Iran stands to benefit significantly from a nuclear deal rather than from imposing tolls in the strait. The parties have set a 60-day timeline to reach a comprehensive nuclear agreement, but two weeks into this period, they are still debating the terms of a previously signed memorandum of understanding (MOU). The likelihood of the initial deal collapsing appears to be increasing.
Following several exchanges of fire, the U.S. and Iran reached an understanding on Sunday to de-escalate tensions in the strait for one week, allowing for productive negotiations. A U.S. official stated, "We have reached an understanding that we will keep things quiet for the coming week, so progress on all aspects of the MOU can be worked on in a productive environment, without missiles flying."
Vice President Vance reported that the U.S. technical team is engaging with Iranian and Qatari officials in Doha to ensure continued progress in negotiations. President Trump's envoys, Steve Witkoff and Jared Kushner, met with Qatari officials to facilitate discussions between the U.S. and Iran. The main topics of discussion included the situation in the strait, Iran's frozen assets, and the ceasefire in Lebanon.
Iran has expressed joint sovereignty over the strait with Oman and intends to charge passage fees after the MOU expires. The U.S. interprets the MOU as requiring endorsement from Gulf countries for any new arrangements in the strait, while Iran maintains that the final decision rests with them.
Witkoff and Kushner have communicated to Iran that their demand for tolls could jeopardize a more beneficial U.S.-Iran deal. A U.S. official emphasized that the potential revenue from developing and selling oil freely would be significantly greater than any tolls.
During the talks, there were reports of an understanding regarding the release of a portion of frozen Iranian funds held in Qatar, although U.S. officials denied that any funds had been released. Additionally, U.S. negotiators expressed their commitment to restraining Israel and ensuring compliance with the ceasefire in Lebanon.