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Iran Update, June 26, 2025

Iran’s Nuclear Stance: Negotiations, Conflict, and Internal Strife

As tensions simmer, the United States and Iran are poised to restart nuclear talks, yet significant obstacles remain. Amidst a backdrop of strikes, internal power struggles, and unwavering stances, the path to a resolution appears complex and challenging.

Nuclear Negotiations Resume

Recent reports suggest the U.S. and Iran will soon engage in nuclear negotiations. However, their entrenched positions on core issues, like uranium enrichment, remain unchanged. The U.S. is anticipated to demand a complete halt to uranium enrichment in Iran, a non-negotiable condition. Meanwhile, Iran’s leaders maintain their prior stance on enrichment.

Iran’s Supreme Leader, Ali Khamenei, has emphasized Iran will not yield to U.S. demands. Khamenei has framed the conflict as not just about uranium enrichment. His televised speeches have emphasized Iran’s determination. This stance suggests that forthcoming talks will likely be difficult.

Internal Dynamics and Damage Assessment

Moderate elements within the Iranian regime may leverage Khamenei’s isolation, using the internal conflict to gain greater political influence. Senior Iranian officials, including President Masoud Pezeshkian, are reportedly part of a faction supporting a pragmatic approach to resolving conflicts with the United States and Israel.

International Atomic Energy Agency Director Rafael Grossi stated on June 26 that centrifuges at the Fordow Fuel Enrichment Plant (FFEP) are “no longer working.” The United States and Israel struck the site with bunker-buster bombs. The degradation of Iran’s nuclear program may complicate its ability to further enrich its uranium.

Map of strike locations at Fordow.

Recent reports highlight that strikes on Iranian nuclear facilities failed to destroy Iran’s enriched uranium stockpile. It is impossible to destroy this, as it is an element. Meanwhile, U.S. strikes have made it more difficult for Iran to weaponize its high-grade uranium. The U.S. and Israel struck research facilities and an underground complex involved in centrifuge production, as well.

Impact on the Axis of Resistance

The Israel-Iran conflict has the potential to limit Iran’s financial support for Hezbollah. Hezbollah has suspended its compensation payments to its fighters. This could signal the regime prioritizing its funds to address the recent conflict’s damage over its proxies. A recent report indicated that Hezbollah has struggled to maintain its financial commitments to its fighters following the Israel-Lebanon conflict. This is a significant factor for Hezbollah, as compensation has been a critical tool for maintaining the loyalty of its support base.

Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump allegedly agreed to expand the Abraham Accords to include Syria and Saudi Arabia. Such expansion could signal a significant shift in Middle Eastern relations. The outcome of the Israel-Iran War “presents an opportunity for a dramatic widening of peace agreements,” according to Netanyahu.

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