Iran is preparing to reject a U.S. proposal aimed at resolving its long-standing nuclear dispute, calling the offer unbalanced and insufficient, a senior Iranian diplomat told Reuters on June 2.

The unnamed diplomat, close to Iran’s negotiating team, said the U.S. proposal fails to ease core restrictions on uranium enrichment or address Iran’s call for complete sanctions relief. “This is a non-starter,” the official stated, adding that Iran will formally respond with a rejection.

The proposal was delivered by Omani Foreign Minister Sayyid Badr Albusaidi, who has been mediating indirect talks between Tehran and Washington. It followed five negotiation rounds between Iranian Foreign Minister Abbas Araqchi and U.S. envoy Steve Witkoff.

Enrichment and Sanctions Are Key Sticking Points

Washington is demanding Iran commit to halting enrichment and shipping out its existing stockpile of highly enriched uranium. Tehran, however, insists on the right to enrich for civilian purposes and seeks a guarantee the U.S. will not abandon any future deal—as it did in 2018 under President Trump.

Iran also demands immediate lifting of sanctions crippling its oil-driven economy. The U.S. prefers a phased approach.

Political Stakes and Regional Warnings

Iranian officials say a “political deal” could be reached if the U.S. released frozen Iranian assets and accepted enrichment rights. However, Iran’s Supreme Leader Ayatollah Khamenei reportedly sees the current U.S. offer as overly one-sided.

Tensions remain high. Saudi Arabia has warned Iran to consider the deal or face possible Israeli military action. Trump has revived the “maximum pressure” strategy and threatened force if diplomacy fails.

Israel Looms Over Stalemate

Israel, which views Iran’s nuclear program as an existential threat, has long warned it may strike Iranian nuclear sites. Iran’s Foreign Minister Araqchi dismissed this in Cairo: “I do not think Israel will commit such a mistake as to attack Iran.”

Meanwhile, Iran’s influence in the region is seen as waning, with battlefield losses weakening its “Axis of Resistance” network including Hezbollah, the Houthis, and various Iraqi militias.