President Donald Trump on Thursday stressed that Washington must reach a substantive agreement with Iran, saying recent engagements with Iranian counterparts have produced constructive conversations. Speaking at the inaugural meeting of his Board of Peace in Washington, the president said progress has been made but cautioned that securing a deal has historically been difficult.
"Good talks are being had. It’s proven to be, over the years, not easy to make a meaningful deal with Iran. We have to make a meaningful deal, otherwise bad things happen,"
The comments came amid indirect talks held earlier in the week in Geneva. On Tuesday, U.S. envoys Steve Witkoff and Jared Kushner met indirectly alongside Iranian Foreign Minister Abbas Araqchi. Those discussions were described as aimed at preventing a mounting crisis between the two nations.
At the center of the U.S. position is a demand that Iran abandon its nuclear program. Iran has firmly rejected that demand and insists it is not pursuing development of an atomic weapon. According to a senior U.S. official, Iran is expected to submit a written proposal during the Geneva talks outlining how it would address U.S. concerns; the official conveyed that expectation on Wednesday.
Trump's remarks at the Board of Peace meeting underscore the administration's view that diplomacy remains necessary but difficult. He framed the talks as promising while reiterating the stakes involved if a credible agreement cannot be reached.
Key points
- President Trump said productive discussions with Iran are underway and that the U.S. must secure a meaningful deal to avoid adverse outcomes.
- Indirect Geneva talks on Tuesday involved U.S. envoys Steve Witkoff and Jared Kushner and Iranian Foreign Minister Abbas Araqchi, aiming to head off a growing crisis.
- The core U.S. demand is that Iran give up its nuclear program; Iran denies seeking an atomic weapon and is anticipated to deliver a written proposal to address U.S. concerns.
Sectors and markets potentially affected
- Energy - tensions involving Iran can influence oil markets and supply considerations.
- Defense - heightened diplomatic risk can affect defense contractors and regional security spending.
- Financial markets - geopolitical uncertainty may affect risk sentiment and capital flows.
Risks and uncertainties
- Failure to reach a meaningful agreement could allow tensions to escalate, increasing geopolitical risk for exposed sectors such as energy and defense.
- Iran's continued refusal to abandon its nuclear program leaves the core dispute unresolved and prolongs diplomatic and security uncertainty, which can affect markets sensitive to regional instability.
- Outcomes of the Geneva discussions are not guaranteed; while a written Iranian proposal is expected, its content and whether it will satisfy U.S. concerns remain uncertain.