US and Iran resume indirect talks in Doha, focus on frozen assets and a Hormuz truce
American and Iranian delegations held indirect negotiations in Qatar on July 1, with mediators from Qatar and Pakistan. Preliminary agreements cover a temporary truce in the Strait of Hormuz and the partial release of frozen Iranian funds.
Doha talks restart
US special envoy Steve Witkoff and Jared Kushner arrived in Doha to prepare the ground with Qatari prime minister and foreign minister Mohammed bin Abdulrahman Al Thani. The indirect technical talks, mediated by Qatar and Pakistan, were described as 'positive' by two regional sources cited by Axios, opening the way to a technical negotiating phase. Iranian deputy foreign minister Kazem Gharibabadi confirmed that discussions with Qatari officials focused on the implementation of the US-Iran memorandum of understanding, including frozen assets and the situation in Lebanon.
The meetings with the Iranian delegation in Doha were excellent.
Asset unfreezing and Iran's demands
Tehran insists on the release of its frozen funds before broader progress can be made. A preliminary agreement, reported by the Egyptian daily Al-Hadath, foresees the unfreezing of three billion dollars. According to Iran's official Irna news agency, Gharibabadi announced that a portion of the six billion dollars of frozen Iranian assets will be used for 'necessary goods' for the country. A senior source cited by Al Arabiya said Iran wants five points of the MoU implemented, giving priority to the transfer of funds to its central bank.
Part of the six billion dollars of frozen Iranian assets will be used for the purchase of necessary goods.
Hormuz truce and US military posturing
The negotiators agreed to maintain calm in the Strait of Hormuz for the upcoming week so that progress on all aspects of the memorandum can be worked on 'in a productive environment, without missiles flying,' a US official told Axios. The official added President Trump's message was clear: whenever they shoot, the US will respond with more shots against targets that further weaken Iran's position in the strait. Witkoff and Kushner are pushing Iran to think beyond tolls on the waterway, with the White House aiming for a comprehensive deal rather than a narrow transit arrangement.
Think bigger.
Oman has presented a proposal on the future of navigation in the strategic passage, while the Joint Maritime Information Center raised the threat level to 'substantial' due to the risk of mines and clearance operations. The US is also assessing a possible reduction of its military footprint in Saudi Arabia following a diplomatic clash over the use of Saudi bases for the Hormuz operation 'Project Freedom'.
Saudi-US rift
Riyadh initially refused to allow the use of its airspace and bases for the operation, forcing its cancellation. Washington then threatened to block the delivery of interceptor missiles Saudi Arabia needs for its defence, according to US and Arab officials cited by the Wall Street Journal. The kingdom eventually relented, but the damage was deep. Secretary of State Marco Rubio's recent Gulf tour included stops in the UAE, Kuwait and Bahrain but not Saudi Arabia, a move Saudi officials considered an affront.
The Trump administration is in an excellent position regardless of the outcome of the talks.
President Trump, speaking in North Dakota, said he was winning the war with Iran 'very easily' and that denuclearization is proceeding. The Wall Street Journal reported that Trump weighed resuming large-scale military strikes to 'finish the job' but opted for diplomacy, judging that a return to fighting could jeopardise the dismantling of Iran's nuclear programme.
