A fragile peace process hangs in the balance as the US demands Iran surrender its nuclear material, a move that could derail ceasefire talks and reignite a conflict with massive economic consequences.
A fragile peace process hangs in the balance as the US demands Iran surrender its nuclear material, a move that could derail ceasefire talks and reignite a conflict with massive economic consequences.

US President Donald Trump has demanded Iran surrender all its highly enriched uranium, a significant escalation in rhetoric that threatens to upend fragile ceasefire negotiations now approaching their 90th day. The demand introduces a contentious new condition to talks that have so far failed to produce a breakthrough, increasing the risk of a renewed conflict that could severely disrupt global energy markets.
"We will get that highly enriched uranium. We don't need it, and we don't want it," Trump told reporters at the White House on May 21. "We will most likely destroy it. We will not let them have it." The statement came as he simultaneously noted that discussions were progressing, highlighting the dual-track approach of diplomatic pressure backed by military threats that has defined the crisis.
The high-stakes negotiations are being closely watched by global markets, which remain on edge after the US-Israeli offensive that began on February 28, dubbed Operation Epic Fury, sent oil prices surging and disrupted shipping. Indirect talks, mediated by Pakistan, are ongoing, with Iranian state media confirming Tehran is reviewing a new proposal from Washington. Trump has described the talks as being in their "final stages," yet a long-term resolution remains elusive.
At stake is the stability of the global economy, which is highly vulnerable to disruptions in the Strait of Hormuz, a chokepoint for nearly a fifth of the world's oil supply. The conflict has already inflicted significant economic damage, with soaring costs for energy, fertilizer, and shipping rippling through global supply chains and threatening to tip economies into recession.
Unable to match the US militarily, Iran has sought to weaponize its geographic control over the world's most critical energy chokepoint. Tehran is reportedly in talks with Oman to impose a permanent transit toll on all vessels passing through the Strait of Hormuz, a move that would be similar to fees levied by the Suez or Panama canals.
The proposal was swiftly rejected by Washington. US Secretary of State Marco Rubio called the plan "unacceptable" and said it would make any peace deal "unfeasible." President Trump was more direct, stating the US wants the strait to be "free and open and devoid of tolls" and that the US blockade remains "100% effective." The attempt to monetize the strategic waterway shows Iran's effort to convert its endurance in the conflict into long-term economic leverage.
The current diplomatic standoff follows a military campaign built on what now appear to be flawed assumptions. US and Israeli planners of Operation Epic Fury seemed to expect a swift collapse of the Iranian government, similar to the overthrow of the Maduro administration in Venezuela. Instead, while Iran’s conventional military was severely degraded, the state did not collapse, and the war has now dragged on for nearly three months. The last time the US was engaged in such a prolonged conflict without a clear victory was in Vietnam, a comparison being quietly invoked by observers.
The conflict has dealt a psychological blow to the image of American and Israeli invincibility, demonstrating that overwhelming military superiority does not guarantee quick political outcomes. With a fragile ceasefire holding, both sides are now locked in a tense negotiation where the US seeks to dismantle Iran's nuclear capabilities, while Tehran fights for sanctions relief, reparations, and economic concessions. The world is now watching to see if diplomacy can succeed where military force has failed to produce a decisive result.
This article is for informational purposes only and does not constitute investment advice.