• ENDING THE WAR – U.S. President Donald Trump says the war is near an end and can be resolved by Iran accepting terms. Iran does not trust him or Israeli Prime Minister Benjamin Netanyahu. Iranian officials point to their decision to attack in February despite a ceasefire that ended a previous U.S.-Israeli air campaign last year. Both conflicts were launched unannounced during efforts to resolve issues diplomatically. Tehran also cites Israeli attacks during ceasefires in Gaza and Lebanon as reasons to believe a truce will not hold and wants some form of external guarantee.
• HORMUZ AND GULF BLOCKADE – Tehran sees its control of Hormuz and Washington views its blockade of Iranian ports as their chief points of leverage. But both sides are hurting. Iran’s economy faces catastrophe, and its inability to export oil may mean a storage crunch and output cuts. Its blockade of the Strait of Hormuz, meanwhile, is causing a worldwide energy crisis months before U.S. midterm elections. Iran wants formal recognition of its control over Hormuz, though this would be opposed internationally.
• NUCLEAR – The United States believes Iran wants to build a nuclear bomb. Iran has always denied this, saying its atomic programme is for peaceful purposes only. The focus is on its enrichment of uranium, which generates fuel for nuclear power but can also make material for a warhead. Washington wants Iran to give up its right to enrichment for 20 years and hand over its stockpile of highly enriched uranium. Iran wants its right to enrichment to be recognised. An agreement may eventually be possible including a years-long moratorium on enrichment and the export of its highly enriched uranium, but that still looks far off.
• BALLISTIC MISSILES – One main U.S. demand before the war was for Iran to limit the range of its ballistic missiles so that they could not reach Israel. It says its war has succeeded in degrading Iran’s missile stocks, and it is not clear whether it would continue to insist on range limits in a bigger peace deal. Iran has always refused to discuss its ballistic missiles, saying its right to conventional weapons cannot be on the table and that it still has a large arsenal.
• SANCTIONS AND FROZEN ASSETS – Iran’s economy has been hurt by sanctions for years, contributing to the nationwide unrest in January. Tehran badly needs them to be lifted and frozen assets to be released. It also wants reparations for war damage, though there seems no chance now of the U.S. agreeing to this, and it is not clear if it would stick to the demand as a condition for a deal.
• Iran has previously said Israel’s war against its ally Hezbollah in Lebanon must be included in any peace deal. Israel rejects this, and it is not clear how far Iran would insist on it in future talks.