US and Iran to Resume Indirect Talks on $6bn Asset Freeze

Talks at an indirect level between US and Iranian officials over unfreezing at least $6bn Iranian assets will recommence on Wednesday in Doha, Iran has said. The two sides are yet to have their first face-to-face meeting since signing a deal to extend the ceasefire and reopen the strait of Hormuz.

US envoys Steve Witkoff and Jared Kushner were in Qatar on Tuesday for talks covering regional issues including the Iran ceasefire and Lebanon, but Qatar’s foreign ministry spokesman, Majed Al-Ansari, stressed these were with Qatari mediators. “They are not here for their negotiations with the Iranians,” he said.

The US team is seeking details of a plan for Iran to charge tolls in the strait of Hormuz, and how the plan relates to proposals for consultation being tabled by Oman that would introduce fees for navigational services.

The lack of renewed direct contact between the US and Iran on how to implement the memorandum of understanding signed on 17 June reflects tensions over Iran’s determination to maintain control over commercial oil tanker traffic through the strait of Hormuz, as well as Iran’s opposition to the proposed Lebanon ceasefire negotiated by Israel, the US and the Lebanese government last week.

Talks between Iran and the US have not even started on Iran’s nuclear programme even though only 60 days from 17 June had been set aside to complete the complex talks.

In theory those talks can be extended beyond the 6o-day deadline, but the slow progress is starting to alarm some diplomats.

Iran’s foreign ministry spokesman, Esmail Baghaei, speaking at a press conference in Tehran, warned European powers such as France and the UK not to seek to become involved in de-mining the strait of Hormuz. “Iran is better aware of its responsibilities than any other party and is capable of fulfilling them, and there is no need for the intervention of others. Interventions that, even if made with good intentions, will in practice only complicate the situation,” he said.

Western powers object to Iran’s plan to impose tolls for commercial shipping passing through the strait, but may be more open to discussing Oman’s plan for voluntary contributions or fees charged for specific services.

The UN’s International Maritime Organisation was holding informal discussions with Iran about Tehran ’s objections to the IMO opening a sea route through the strait close to Oman in conjunction with the US and Oman. At one point last week the IMO thought it had the agreement of the Iranian foreign ministry to the route, but Iran then attacked two ships, possibly fearing its control of the strait was being eroded.

The IMO secretary General Arsenio Dominguez then suspended the route to hold talks with Iran.

According to data from Kpler, a maritime tracking firm, 40 ships transited the waterway on Monday, up from 24 the previous day and 39 on Saturday.

Hundreds of vessels have been stranded since the war between the US and Iran broke out on 28 February, leaving as many as 10,000 seafarers stranded. Not all ships have their transponders on, making an accurate count hard, but Iran may regard this level of traffic as so far below normal levels as to keep the pressure on the price of oil.

It is committed to using its best endeavours to lift the blockade in the strait within 30 days

Giving a relatively optimistic account of the state of relations with the US, only days after the two sides exchanged fire arising from a dispute over the control of the strait, Baghaei said: “From the beginning when we entered this diplomatic process, no one imagined a smooth and unchallenged process. Keep in mind that this diplomatic process began after two wars in less than a year […] we expected to face challenges in the implementation phase.”