The two countries are trying to solve several problems. These include who can sail through the Strait of Hormuz, what Iran will do with its nuclear program, and billions of dollars in frozen assets.
Both sides say they want peace, but the fighting has not stopped. Experts say it could still take days or weeks to reach a final agreement.
The United States military struck Iranian patrol boats and a missile launch site in southern Iran on Monday, even as President Trump claimed that negotiations to end the three-month conflict were making progress. The simultaneous use of military force and diplomacy reflects a high-stakes strategy aimed at pressuring Tehran toward a settlement.
Trump told reporters on Saturday that a memorandum of understanding had been 'largely negotiated,' a statement that briefly pushed oil prices lower. By Monday morning he had walked back the claim, saying the deal was not yet ready to announce. The reversal created confusion in markets and among both countries' negotiating teams.
The central issues dividing the two sides include freedom of navigation through the Strait of Hormuz, the scope of Iran's uranium enrichment, the release of approximately $100 billion in frozen Iranian assets, and a long-term security framework. Iranian officials have publicly demanded an end to US naval patrols in the Gulf as a condition for any agreement.
Analysts warn that continuing military strikes, even those described as defensive, risk strengthening hardliners in Tehran who argue that Washington cannot be trusted to honor a deal. Both sides have expressed a preference for diplomacy, but the gap on the nuclear issue in particular remains wide.
The persistence of kinetic operations alongside active diplomacy has become the defining tension of the US-Iran endgame. US destroyers in the Persian Gulf struck an IRGC coastal patrol squadron and a missile staging complex in southern Iran on Monday, hours after the White House reiterated that Steve Witkoff's Qatar-based negotiating channel remained open and productive. Brent crude responded with studied calm, settling up $0.40 at $107.80 -- a market judgment that the dual-track posture, however contradictory in appearance, is likely to produce a deal rather than a full escalation.
The weekend generated its own whipsaw dynamic. Trump told reporters on Saturday that a memorandum of understanding had been 'largely negotiated,' language that sent Brent briefly to $104.60 before a White House clarification narrowed the claim to 'framework language exists, gaps remain.' By Monday the administration had walked back the framing entirely, reinstating the uncertainty premium that has kept crude in the $104-$110 band for three weeks.
The substantive distance between the parties on the nuclear question remains formidable. Washington insists on full cessation of enrichment above 20 percent with international verification; Tehran is prepared to cap stockpiles at a level that US intelligence considers weapons-adjacent. The asset question is similarly asymmetric: Iran wants a front-loaded unfreezing of roughly $100 billion in blocked accounts while Treasury seeks a performance-based release schedule tied to verifiable nuclear rollback milestones. Overhanging both sets of negotiations is Iran's core demand -- termination of US freedom-of-navigation operations in the Gulf -- which conflicts directly with established US naval doctrine.
The Council on Foreign Relations' Persian Gulf analysts note that the pattern of weekend optimism followed by Monday hedging has now repeated four times since the first conditional ceasefire in April, and that each iteration erodes the credibility of the Gulf mediators -- Qatar, Pakistan, and the UAE -- without whose diplomatic cover the channel would lose its neutrality. The deeper structural risk is that a deal built on ambiguous language about enrichment verification could collapse within months, leaving a rearmed Iran with the argument that a negotiated framework had briefly legitimized its program.
The US military struck Iranian patrol boats and missile sites in the Persian Gulf on Monday even as President Trump said negotiations to end the three-month war were proceeding well. Trump described the deal as largely negotiated over the weekend, then walked back the claim by Monday morning. Key sticking points including the Strait of Hormuz, Iran's nuclear program, and frozen assets are still being resolved.
The United States and Iran are fighting a war. The war started about three months ago.
US ships hit Iranian boats in the sea on Monday. President Trump said talks for peace are going well.
Trump says the deal to stop the war is almost ready. But there are still some problems to fix.
People around the world want the war to end. Oil prices go up and down because of this conflict.
1What did US ships do in the Gulf on Monday?
2How long has the war lasted?
3What did Trump say about the peace deal?
4Why do oil prices go up and down?
5What is the Strait of Hormuz?
6The US and Iran are currently at peace.
7US ships hit Iranian boats on Monday.
8Trump says the deal is completely finished and signed.
9The war has lasted about three months.
10Oil prices are not affected by the US-Iran conflict.
11The US and Iran are fighting a ___.
12Trump says a peace ___ is almost ready.
13The Strait of ___ is important for oil shipping.