Commodities June 1, 2026 05:18 AM

Iran Says Mixed U.S. Signals and Israeli Strikes Are Slowing Diplomatic Progress

Tehran ties Israeli actions to U.S. policy, calls for Lebanon ceasefire to be part of any settlement and presses for release of frozen funds

By Hana Yamamoto

Iran accused the United States of sending inconsistent messages and pointed to ongoing Israeli strikes in the region as factors delaying efforts to resolve the U.S.-Iran conflict. Tehran said mistrust is pervasive in current exchanges, warned regional states against enabling strikes on Iran, and reiterated its demand for the release of frozen funds while saying formal nuclear-file negotiations have not yet begun.

Iran Says Mixed U.S. Signals and Israeli Strikes Are Slowing Diplomatic Progress

Key Points

  • Iran says diplomatic exchanges have begun but are hampered by "severe suspicion and mistrust" and shifting U.S. positions, delaying a final settlement.
  • Tehran links Israeli military actions in the region, including strikes on Lebanon's Dahiyeh, to U.S. policy and insists any regional deal must include implementation of a Lebanon ceasefire.
  • Iran reiterates its demand for the release of frozen funds and notes that formal negotiations over the details of the nuclear file have not yet taken place; recent strikes and counterstrikes between U.S. and Iranian forces continue to influence the talks - sectors impacted include defense, financial services handling frozen assets, and regional markets.

DUBAI, June 1 - Iran on Monday attributed the slow pace of diplomacy aimed at ending the U.S.-Iran confrontation to a climate of mistrust, shifting U.S. positions and ongoing Israeli military activity across the region.

Foreign ministry spokesperson Esmaeil Baghaei said diplomatic contacts had begun amid "severe suspicion and mistrust, and the exchange of messages is taking place in this atmosphere," and added that the two sides had not yet reached a final conclusion.

"The other party is constantly changing its views and putting forward new or contradictory demands (...) it is natural that this situation will prolong negotiations,"

Baghaei said that if the appearance of contradictory messages represented a deliberate U.S. negotiating tactic it would fail with Iran. He added that, if the mixed signals reflected internal confusion within the U.S. administration, Washington should establish a clear and definitive stance as soon as possible.

The spokesperson linked Israeli operations in the region, including strikes in Lebanon, to U.S. actions, saying Tehran viewed them as inseparable. He said any agreement intended to end the broader regional conflict would have to incorporate implementation of a Lebanon ceasefire.

Baghaei's comments about Lebanon followed an order from Israeli Prime Minister Benjamin Netanyahu directing the military to resume strikes on the southern suburbs of Beirut, an area known as Dahiyeh and described as a Hezbollah stronghold.

On the nuclear track, Baghaei said there had not yet been negotiations over the details of the file. He reiterated that Tehran was pursuing its core demand: the release of its frozen funds.

Baghaei accused the United States of breaching the ceasefire through strikes on Iran's southern provinces, saying such actions deepened mistrust and gave Iran the right to take reciprocal defensive measures under the principle of self-defence.

U.S. officials said the United States struck Iranian military sites at the weekend. Iran's Islamic Revolutionary Guard Corps said on Monday it had targeted a U.S. base in Kuwait in response.

"Learn from the past and do not let the U.S. and Israel use your capabilities against Iran,"

Baghaei warned regional governments to avoid enabling attacks on Iran. His remarks underscored the diplomatic friction and military exchanges complicating efforts to reach a stable resolution to the conflict.


For now, Iran describes the negotiation environment as one of deep mistrust and inconsistent interlocutor positions, while continuing to press two clear demands: inclusion of a Lebanon ceasefire in any regional settlement and the release of frozen Iranian funds. Military actions by the United States and Israel, and reciprocal Iranian responses, remain central elements shaping the trajectory of talks.

Risks

  • Continued military strikes and retaliatory actions increase the risk of further escalation - this primarily affects the defense sector and regional stability.
  • Inconsistent or changing U.S. positions could prolong negotiations and sustain market uncertainty, particularly for financial institutions dealing with frozen Iranian funds.
  • Persistent mistrust between the parties may delay diplomatic resolution, maintaining volatility for regional trade and investor sentiment.

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