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Iran demands US compensation before nuclear talks can resume

July 31, 2025 at 2:40 pm

Iranian Foreign Minister Abbas Araghchi attends the 51st Session of the Council of Foreign Ministers of the Organization of Islamic Cooperation (OIC), hosted by Turkish Foreign Minister Hakan Fidan at the Lutfi Kirdar International Convention and Exhibition Center in Istanbul, Turkiye, on June 21, 2025. [Arman Önal – Anadolu Agency]

Iran’s Foreign Minister Abbas Araghchi has demanded that the US pay compensation for the damage inflicted during last month’s war, as a condition for resuming nuclear negotiations. In an interview with the Financial Times, Araghchi warned that the “road to negotiation is narrow” and that Tehran would not tolerate a return to “business as usual” after what he described as an unprovoked US assault.

“They should explain why they attacked us in the middle of . . . negotiations, and they have to ensure that they are not going to repeat that [during future talks],” Araghchi said. “And they have to compensate [Iran for] the damage that they have done.”

His comments follow a devastating 12-day war triggered by Israeli air strikes on Iran, during which Washington launched missiles at several nuclear facilities and enrichment sites. The US intervention — despite prior commitments not to start a war on behalf of Isarel — has fuelled public fury across Iran, undermining prospects for diplomacy and triggering new calls for the Islamic Republic to develop a nuclear deterrent.

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While reiterating Iran’s commitment to a peaceful, civilian nuclear programme, Araghchi acknowledged that pressure is growing within the political establishment to abandon restraint. “Anti-negotiation feelings are very high,” he said. “People are telling me, ‘Don’t waste your time anymore, don’t be cheated by them.’”

He added: “The recent aggression proved there is no military solution for Iran’s nuclear programme, but a negotiated solution can be found.”

Despite sustained messaging from Washington’s special envoy Steve Witkoff, Araghchi stressed that Iran expects “real confidence-building measures” — foremost among them, financial reparations and security guarantees. “We need real confidence-building measures from their side,” he said. “My message [to Witkoff] is not that complicated.”

The conflict began on 13 June when Israel launched an unprovoked widespread attacks on Iranian territory just 48 hours before Araghchi and Witkoff were due to meet for indirect nuclear talks. In addition to targeting air defences and nuclear facilities, Israel killed over 1,000 people, including 13 Iranian nuclear scientists and several high-ranking military commanders. Iran responded with missile and drone strikes, killing 29 in Israel, before the US escalated the war with direct strikes on enrichment sites at Fordow and Natanz.

The US has insisted on “zero enrichment” as a precondition for lifting sanctions, but Araghchi dismissed the demand as a non-starter. “We can negotiate, they can present their argument and we will present our own argument,” he said. “But with zero enrichment, we don’t have a thing.”

The war has further exposed internal divisions within the Islamic Republic, where segments of the political class now openly call for nuclear armament as a deterrent against Israeli and US aggression. Yet Iran’s leadership continues to cite a binding religious ruling — a fatwa by Supreme Leader Ayatollah Ali Khamenei — that prohibits the development of nuclear weapons.

The war has also fractured Donald Trump’s political base in the US, with prominent voices in his own party condemning his decision to join Israel’s war against Iran. Critics have accused Trump of betraying his “America First” stance by dragging the country into a foreign conflict with no clear strategic benefit. While Trump’s core evangelical and pro-Israel supporters have defended the strikes as necessary to confront Iran, others warn the move could cost him vital support ahead of the presidential election.

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Former allies have publicly questioned why Trump intervened on behalf of a state that had initiated the war and timed its attack just days before nuclear talks were due to resume.

Western officials believe Iran has preserved its stockpile of uranium enriched to 60 per cent purity — close to weapons-grade — despite the damage. While Iran has suspended cooperation with the International Atomic Energy Agency (IAEA), Araghchi said new talks with the nuclear watchdog may be held next month to discuss a new “modality of co-operation.”

Tensions with Europe are also rising. France, Germany, and the UK have warned they may trigger the “snapback” mechanism to reimpose UN sanctions unless Iran resumes cooperation. Araghchi warned such a move would be a red line.

“With the Europeans, there is no reason right now to negotiate because they cannot lift sanctions, they cannot do anything,” he said. “If they do snap back, that means that this is the end of the road for them.”