Iran has indicated it is prepared to make concessions on its nuclear program in talks with the United States in return for the lifting of sanctions and recognition of its right to enrich uranium, as it seeks to avert a US attack.
Both sides remain sharply divided - even over the scope and sequencing of relief from US sanctions - following two rounds of talks, a senior Iranian official told Reuters.
However, Reuters is reporting for the first time that Iran is offering fresh concessions since its talks ended last week, when the sides appeared far apart and were heading toward military conflict. Analysts say the move suggests Tehran is trying to keep diplomacy alive and stave off a major US strike.
The official said Tehran would seriously consider a combination of sending half of its most highly enriched uranium abroad, diluting the rest, and taking part in creating a regional enrichment consortium - an idea periodically raised in years of Iran-linked diplomacy.
Iran would do this in return for the US recognizing Iran's right to "peaceful nuclear enrichment" under a deal that would also lift economic sanctions, the official said.
In addition, Iran has offered opportunities for US companies to participate as contractors in Iran's large oil and gas industry, the official said, as part of negotiations to resolve decades of dispute over Tehran's nuclear activities.
"Within the economic package under negotiation, the United States has also been offered opportunities for serious investment and tangible economic interests in Iran's oil industry," the official said.
The White House did not respond immediately to queries on the issue.
Iran and the United States resumed negotiations earlier this month as the US builds up its military capability in the Middle East. Iran has threatened to strike US bases in the region if it is attacked.
The Iranian official said the most recent discussions underscored the gap between the two sides, but stressed that "the possibility of reaching an interim agreement exists" as negotiations continue.
Iran seeks 'logical timetable' for lifting sanctions
"The last round of talks showed that US ideas regarding the scope and mechanism of sanctions relief differ from Iran's demands. Both sides need to reach a logical timetable for lifting sanctions," the official said.
"This roadmap must be reasonable and based on mutual interests."
Iran's Foreign Minister Abbas Araghchi said on Sunday he expects to meet with US President Donald Trump's special envoy, Steve Witkoff, in Geneva on Thursday, adding that there is still "a good chance" of a diplomatic solution.
Araghchi said on Friday that he expected to have a draft counterproposal ready within days, while Trump said he was considering limited military strikes.
Citing officials on both sides and diplomats across the Gulf and Europe, Reuters reported on Friday that Tehran and Washington are sliding rapidly towards military conflict as hopes fade for a diplomatic settlement.
On Sunday, Witkoff said the president was curious as to why Iran has not yet "capitulated" and agreed to curb its nuclear program.
"Why, under this pressure, with the amount of seapower and naval power over there, why haven't they come to us and said, 'We profess we don't want a weapon, so here's what we're prepared to do'? And yet it's sort of hard to get them to that place," Witkoff said on Fox News.
Negotiations yield 'encouraging symbols'
Iranian President Masoud Pezeshkian described recent negotiations as having yielded "encouraging symbols" in a post on X/Twitter on Sunday.
"Recent negotiations involved the exchange of practical proposals," Pezeshkian stated. "However, we continue to closely monitor US actions and have made all necessary preparations for any potential scenario."
Readiness to compromise on nuclear work
Behnam Ben Taleblu, senior director of the Iran program at the Foundation for Defense of Democracies, said Iran's leadership is seeking to buy time via the talks.
"Iran will use that time for various reasons, including to avoid a strike and to harden nuclear, missile, and military facilities," he said.
While rejecting a US demand for "zero enrichment" - a major sticking point in past negotiations - Tehran has signaled its readiness to compromise on its nuclear work.
Washington has also demanded that Iran relinquish its stockpile of highly enriched uranium (HEU). The International Atomic Energy Agency (IAEA) last year estimated that the stockpile was more than 440 kg of uranium enriched to up to 60% fissile purity, a small step away from the 90% that is considered weapons-grade.
Ali Larijani, a close adviser to Iran's supreme leader, told Al Jazeera TV that Iran was ready to allow extensive IAEA monitoring to prove it is not seeking nuclear weapons.
The agency has been calling on Iran for months to allow for inspection of three nuclear sites that were struck by the US in June last year during the 12-day war. Since then, Tehran has said its uranium enrichment work has stopped.
Satellite images show that Iran has begun rebuilding at a location reportedly bombed during the June strikes, recently building a concrete shield over a new facility at a sensitive military site and covering it in soil, experts say.
A deal with benefits for both sides
Among US demands are restrictions on Tehran's long-range ballistic missiles and an end to its support for regional terror proxy groups.
Iran has flatly rejected discussing its missiles, while sources have told Reuters, without elaborating, that "the issue of regional proxies is not a red line for Tehran."
Iranian authorities have said that a diplomatic solution would provide economic benefits for both Tehran and Washington.
The Iranian official said Tehran would not hand over control of its oil and mineral resources.
"Ultimately, the US can be an economic partner for Iran, nothing more. American companies can always participate as contractors in Iran's oil and gas fields."