Commodities February 25, 2026

Iran Optimistic as Third Round of Talks with U.S. Begins in Geneva

Iranian delegation departs for negotiations amid U.S. military buildup and tightly timed ultimatum from Washington

By Ajmal Hussain
Iran Optimistic as Third Round of Talks with U.S. Begins in Geneva

Iranian President Masoud Pezeshkian said the country expects a positive outcome from a third round of talks with the United States as Tehran’s negotiating team left for Geneva. The delegation, led by Foreign Minister Abbas Araqchi, is due to meet U.S. envoys including Steve Witkoff and Jared Kushner, as tensions persist with a U.S. military buildup and a compressed timeline set by U.S. President Donald Trump.

Key Points

  • Iranian President Masoud Pezeshkian said Tehran sees a positive prospect for the third round of talks with the United States.
  • A delegation led by Foreign Minister Abbas Araqchi left for Geneva, where U.S. envoy Steve Witkoff and Jared Kushner are scheduled to meet them.
  • Talks take place while the U.S. increases military capability in the Middle East and with a 10-15 day timeline set publicly by President Trump; both sides have issued warnings and conditional statements.

DUBAI, Feb 25 - Iran expressed a hopeful outlook on Wednesday for the third round of negotiations with the United States, President Masoud Pezeshkian said, as a delegation departed for Geneva to discuss Tehran's nuclear programme.

The Iranian team is being led by Foreign Minister Abbas Araqchi. A senior U.S. official said earlier this week that U.S. envoy Steve Witkoff and Jared Kushner, a senior adviser to U.S. President Donald Trump, are scheduled to meet the Iranian delegation in Geneva on Thursday.

These meetings follow the resumption of talks between the two countries earlier this month. The diplomatic engagement is taking place alongside a build-up of U.S. military capability in the Middle East, described by reporting as preparation for possible strikes on the Islamic Republic. Iran has warned it would strike U.S. bases in the region if it is attacked.

On Feb 19, President Trump said he was giving Tehran about 10 to 15 days to reach a deal.

Commenting on the Geneva meeting, Pezeshkian told state media: "In relation to the talks, we see a good outlook, tomorrow in the meeting that Dr. Araqchi will hold in Geneva... we have tried, with the guidance of the Supreme Leader, to manage this process to get out of the no war, no peace situation."

Foreign Minister Araqchi said on Tuesday that a deal with the U.S. was "within reach, but only if diplomacy is given priority."

The United States and Israel hold the view that Iran seeks a nuclear weapon that could threaten Israel's existence. Iran maintains its nuclear programme is for peaceful purposes, even though it has enriched uranium beyond the levels needed for power generation and close to concentrations that would be required for a bomb.

The delegation's travel to Geneva and the planned meetings bring renewed focus to the fragile diplomatic channel between Tehran and Washington. Officials on both sides have framed the upcoming talks as critical, while tensions remain elevated by military preparations and public threats from both Washington and Tehran.


Context note: The parties involved have issued public statements outlining their positions and timelines; the outcomes of the Geneva meetings remain to be seen.

Risks

  • Possibility of military confrontation - the U.S. has been building up forces in the region and Iran has warned it would strike U.S. bases if attacked. This risk most directly affects defense and security sectors.
  • Diplomatic fragility - officials say a deal is "within reach, but only if diplomacy is given priority," highlighting uncertainty over whether talks will succeed; this impacts government-to-government relations and related geopolitical risk assessments.
  • Nuclear proliferation concerns - U.S. and Israeli views that Iran may seek a weapon, contrasted with Iran's insistence its programme is peaceful, create ongoing uncertainty over nuclear-related policy and regional stability, affecting defense and strategic planning.

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