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Khamenei downplays US talks prospects as some Iranians’ hopes stir, currency gains
Iran’s clerical rulers have publicly said that demands such as dismantling the country’s peaceful nuclear programme or its conventional missile capabilities were off the table.
Iran’s Supreme Leader Ayatollah Ali Khamenei sought on Tuesday to play down expectations of a breakthrough in nuclear talks with the U.S., following stirrings of hope among some Iranians weary of economic hardships that have at times sparked public unrest.
Failure to reach a deal with President Donald Trump to end Iran’s decades-long dispute with the West could profoundly hurt the Islamic Republic, Iranian politicians and insiders have said, even if Washington is subsequently portrayed by Tehran as the guilty party.
A second round of nuclear talks will be held in Muscat on April 19.
Iran’s battered rial currency has gained some 20% against the dollar in the past few days, with many Iranians hoping an deal to end Iran’s economic isolation may be within reach.
“We are neither overly optimistic nor pessimistic regarding them. After all, it is a process which was decided and its first steps have been well implemented,” Khamenei said in a meeting with officials, according to state media.
White House special envoy Steve Witkoff, who leads the talks with Iran, said that Trump has asked him to “create a tough, fair deal that will endure.”
“Any final arrangement must set a framework for peace, stability, and prosperity in the Middle East – meaning that Iran must stop and eliminate its nuclear enrichment and weaponization program,” Witkoff posted on X on Tuesday.
Iran’s clerical rulers have publicly said that demands such as dismantling the country’s peaceful nuclear programme or its conventional missile capabilities were off the table.
Tehran has approached the talks warily, doubting the likelihood of an agreement and suspicious of Trump, who abandoned Tehran’s 2015 nuclear pact with six world powers during his first term in 2018. He has repeatedly threatened to use military force if there is no deal.
“From here on, it (the talks) must be followed through carefully, with red lines clearly defined for both the other side and for us. The negotiations may lead to results, or they may not,” said Khamenei.
“Avoid linking the country’s fate to these talks.”
Some Iranian officials have suggested that Trump’s business background could make him more receptive to a deal if it includes economic incentives, such as a potential purchase of U.S.-made planes or unlocking of Iran’s economy for U.S. investors.
But a number of Iranian newspapers have warned about inflating public expectations with “baseless hype”.
“Why do you make promises about the talks that cannot be fulfilled? … Don’t undermine public trust with promises made only for fleeting media attention,” wrote the Khorasan newspaper on Monday, in response to comments by an official that raised hopes of economic breakthroughs from the talks.
Since relations with Washington collapsed after Iran’s 1979 Islamic revolution that ousted the U.S.-backed Shah, enmity toward the U.S. has been a rallying point for Iran’s rulers.
But inflation, unemployment and lack of investment as a result of crippling sanctions, reimposed after Trump ditched the 2015 nuclear pact, persuaded Khamenei to support talks with the Trump administration.
Tehran’s concerns were exacerbated by Trump’s speedy revival of his first term’s “maximum pressure” campaign aimed at driving Iran’s oil exports towards zero with more sanctions.
Since 2019, Iran has far surpassed its uranium enrichment limits, according to the International Atomic Energy Agency (IAEA). Tehran is producing stocks of fissile purity well above what Western powers say is justifiable for a civilian energy programme and close to weapons grade.
Tehran has long denied seeking nuclear weapons.
“What Tehran wants in return (from the U.S.) is for sanctions to be removed on several sectors. Once those sanctions are removed, the U.S. cannot bring them back under other pretexts.” the state-run Tehran Times newspaper reported on Monday.
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Explosions heard in areas in southern Iran, Iranian media report
Earlier on Saturday, Tasnim news agency said two missiles struck Qeshm Island with no official information on possible damage.
Explosions were heard on Saturday evening in several areas in southern Iran, including on Qeshm Island in the Strait of Hormuz, Iranian state television reported.
Iran’s state TV suggested that the explosions might be linked to Iranian military activities in the strategic waterway, which has become subject to repeated attacks on commercial shipping since the war erupted between the US and Iran in February.
It said Iranian officials have not confirmed any missile strikes on the areas, while the semi-official Tasnim news agency cited a source as saying that the explosions heard on Qeshm Island were not related to missile strikes.
Iran’s Revolutionary Guards Navy said early on Sunday that two oil tankers were on fire after hitting mines as they attempted to pass through an “unauthorized route” in the strait. It was not immediately clear if the incidents referred to by the IRGC were linked to the sound of explosions heard in southern Iranian areas.
Iran has hit vessels it says have violated its restrictions on passage through the waterway, as it seeks to assert control over the strait and exert pressure on Washington.
Earlier on Saturday, Tasnim news agency said two missiles struck Qeshm Island with no official information on possible damage.
The reported explosions come days after the US carried out strikes on the island. A US official said those strikes were limited and not a resumption of major combat operations.
The US military said on Saturday evening that its forces disabled a commercial vessel that tried to get through the US blockade of Iran.
The US Central Command said one of its aircraft fired at the vessel’s stern and disabled the ship after it attempted to violate the blockade.
Countries in the region had been anticipating that US President Donald Trump, who has held off on strikes on Iran during the weeks leading up to Tuesday’s midterm elections, could restart attacks once the voting was over. Iran has repeatedly said it would respond to new attacks by striking at US and Israeli targets in neighboring countries.
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Pakistan’s leaders dread US Democrats’ win but its households are praying for it
Pakistan’s courtship of Trump, capped by its mediation in the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner circle now threatens the rewards its leaders hoped would follow.
Pakistan’s leaders spent two years courting US President Donald Trump, but after the Democrats’ win in Tuesday’s congressional vote, they are preparing for scrutiny of their access to the White House.
Ordinary Pakistanis see the result differently. Many hope the shift in Washington will ease a cost-of-living crisis intensified by the US-Israel war on Iran, Reuters reported.
“We believe meaningful negotiations with the current US administration are not possible, and the ongoing bloodshed will not end until there is a change in [the US] government,” Karachi resident Sajjad Ali said.
“We want peace, economic improvement and a reduction in the rising oil prices.”
Asim Zafar, also from Karachi, said he hoped the results would rein in Trump. “It could bring changes in important policies and perhaps help prevent some of the injustices being committed against Muslim countries,” he said.
But for Pakistan’s government and powerful military leadership, analysts say, the outcome is far more worrying.
Pakistan’s courtship of Trump, capped by its mediation in the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner circle now threatens the rewards its leaders hoped would follow.
A BET ON ONE MAN
The courtship began early in Trump’s second term, with army chief Asim Munir — who Trump has repeatedly described as his “favourite field marshal” — as Islamabad’s main channel to the White House.
Their June 2025 lunch took place unusually without Pakistani civilian officials present, which put the military at the centre of the rapprochement.
According to Pakistan’s military, their talks went beyond security to cooperation in mining, energy and cryptocurrency.
Pakistan then joined Trump’s Board of Peace and nominated him for the Nobel Peace Prize, crediting him with helping end its May 2025 conflict with India. New Delhi denies US mediation halted hostilities.
Earlier this year, Iran mediation gave the courtship strategic substance: Islamabad relayed messages and hosted April talks between the US and Iran, but the eventual Islamabad Agreement quickly faltered.
For consumers, Pakistan’s rising diplomatic influence has offered little protection from the war’s costs while the payoff for the state has also been thin. The US Export-Import Bank approved $1.25 billion for Pakistan’s Reko Diq copper and gold project in December 2025. But Pakistan’s signature $10 billion request for a US Treasury facility remains unanswered.
DEALS UNDER SCRUTINY
Pakistan’s outreach, public and private, now carries political risk because several arrangements involve Trump’s family or close associates.
Islamabad has signed memoranda to explore payments in USD1, a stablecoin issued by the Trump-linked World Liberty Financial. At the signing in January, Finance Minister Muhammad Aurangzeb said innovation should be “aligned with regulation, stability, and national interest.”
It has also signed another memorandum to redevelop Manhattan’s Roosevelt Hotel, a deal negotiated by envoy Steve Witkoff, and placed a limited drone order with Powerus, whose investors include Trump’s sons Donald Jr. and Eric.
“There are no conflicts of interest,” White House spokeswoman Anna Kelly told Reuters in September, when asked about Powerus.
Husain Haqqani, a former Pakistani ambassador to Washington and senior fellow at the Abu Dhabi-based Anwar Gargash Diplomatic Academy, said Pakistan’s leaders had “built a transactional relationship” with Trump’s team. Some arrangements involving the president’s friends and relatives “might not last,” he said. “Pakistan seems totally unprepared for that scrutiny.”
Daniel Markey, a senior fellow at the Washington-based Stimson Center, warned that investigations could taint the wider relationship if dealings appeared driven by private interests.
From Pakistan’s perspective, there may still be cards left to play, analysts said.
The Atlantic Council’s Michael Kugelman said Pakistan’s counterterrorism cooperation and Iran diplomacy enjoyed bipartisan support, and Democrats would be more likely to blame problematic deals on Trump than on Pakistan.
But “the risk for Pakistan is that it put so many of its diplomatic eggs in the White House basket that it won’t have anything left for the Democrats,” Kugelman said.
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Iran sent nuclear proposal to the US via Qatar, senior Iranian official tells Reuters
Iran has sent the United States a nuclear proposal via Qatar, to be discussed only after Washington meets Tehran’s seven demands, a senior Iranian official told Reuters on Thursday.
The official, who spoke on condition of anonymity, said the US was reviewing the proposal but declined to provide further details.
Mediators have intensified efforts to end the war between Iran and the United States amid fears it could reignite after the US midterm elections, with Trump on Tuesday declining to rule out a resumption of combat operations after the vote and Iran planning wider retaliation if war resumes.
Iran’s top security official Mohsen Rezaei had said earlier on Thursday, during a visit to Russia: “On the issue of diplomacy, we have announced seven conditions to the Americans. As long as they do not execute our seven conditions, we will neither open the Strait of Hormuz nor have negotiations”.
Iran has demanded the lifting of US sanctions, the release of frozen Iranian assets and war reparations, among other conditions, while Washington has said nuclear issues must be part of any initial negotiations.
The US and Israel attacked Iran on February 28, and Iran responded with strikes on Israel and Gulf states that host US bases. Conflict also erupted in Lebanon between Iran-backed Hezbollah and Israel, and more recently spread to Yemen, from where the Iran-aligned Houthis have struck energy facilities, airports and other targets in Saudi Arabia.
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