REUTERS, Dubai

Efforts to reach an interim deal to end hostilities between Iran and the US have intensified, three Iranian sources and a European official told Reuters, despite strikes launched by both sides. The talks focus on releasing frozen Iranian funds.

Sources said Tehran and Washington are still exchanging messages over details of a memorandum of understanding (MoU). A political understanding has been reached, but issues remain, including how to release tens of billions of dollars in frozen oil revenues.

“Iran wants $6–12 billion released directly to Tehran, while Washington prefers staged releases for humanitarian goods and rejects outright transfers,” one Iranian source said. A senior European official added: “Talks are now focused on technical details and the financial amount — essentially, liquidity available to Iran.”

For Iran’s clerical establishment, the priority is not a comprehensive settlement but a framework to unlock assets and end the war, sources said. Militarily, the conflict has reached an impasse. “This war is a dead end. The Americans could not achieve their goals by attacking Iran.

Negotiations have made progress,” one source noted. He suggested recent clashes could even be preparations for announcing an agreement, though escalation remains possible.

Meanwhile, the US blockade of Iran’s ports and Tehran’s control of the Strait of Hormuz continue to drive up economic costs. Another Iranian source said Tehran wants the blockade lifted, citing strains. Iran, facing economic pressure and a weary population, seeks an end to the “no war, no peace” situation.