Iran, U.S. Make Limited Progress in Doha Talks as Strait of Hormuz Dominates Agenda

Iran and the United States concluded another round of indirect negotiations in Doha on Wednesday with only modest progress as discussions centered on implementing aspects of a temporary ceasefire agreement rather than resolving the broader disputes that continue to strain relations between the two countries.

Officials familiar with the negotiations said the two-day talks focused primarily on restoring maritime traffic through the Strait of Hormuz and the release of frozen Iranian funds, two key elements of the interim agreement reached earlier.

The negotiations ended without any indication that both sides had moved significantly closer to a lasting political settlement.

The Qatari Foreign Ministry, which has been mediating the indirect discussions alongside Pakistan, described the meetings as producing “positive progress” on issues related to the memorandum that halted hostilities in June.

According to the ministry, the talks built on previous discussions held in Switzerland and will resume after the funeral ceremonies for Iran’s late Supreme Leader, Ayatollah Ali Khamenei, who is scheduled to be buried on July 9.

Speaking in Washington, U.S. President Donald Trump expressed optimism over broader negotiations, saying discussions regarding Iran’s nuclear programme were progressing well.

“The denuclearization of Iran is moving along well,” Trump told reporters, adding that the two sides had held productive meetings.

However, sources familiar with the Doha negotiations said the nuclear issue was not discussed during the latest round, noting that the meetings were technical in nature and focused on implementing existing commitments. U.S.

Vice President JD Vance confirmed that formal discussions on Iran’s nuclear programme would take place at a later stage.

Negotiators from both countries held separate meetings with Qatari and Pakistani mediators, while senior U.S. officials, including special envoy Steve Witkoff and Jared Kushner, did not participate in the latest sessions despite earlier expectations of high-level engagement.

One of the most sensitive issues remains the future of the Strait of Hormuz, a strategic shipping route that previously handled nearly one-fifth of global oil and liquefied natural gas trade before the conflict disrupted commercial traffic.

Although shipping activity has partially resumed, uncertainty persists after recent military exchanges between Iran and the United States.

Iranian officials have continued to insist on international recognition of Tehran’s authority over the waterway and have indicated plans to begin collecting transit tolls from mid-August following the expiration of a toll-free period outlined in the interim agreement.

Trump sought to reassure markets that the likelihood of renewed large-scale conflict had diminished, saying both countries had made considerable progress in reducing tensions.

Investor sentiment improved following the remarks, with oil prices falling to their lowest level in four months as traders priced in lower geopolitical risks and reduced concerns over potential supply disruptions through the Strait of Hormuz.

Despite the easing in market anxiety, analysts cautioned that significant challenges remain, particularly over Iran’s nuclear programme and the long-term security of one of the world’s most important energy shipping corridors.

Negotiators are expected to resume talks later this month after the completion of mourning ceremonies in Iran.