June 4, 2026

US Official Denies Iranian State Media Claim That Oil Sanctions Have Been Lifted

Trump administration says no sanctions relief will happen “for free” without reciprocal action from Tehran, as talks to end the war remain deadlocked


WASHINGTON / TEHRAN — A senior U.S. official has categorically denied Iranian state media reports claiming that the United States has agreed to lift or waive oil sanctions against Iran while negotiations for a permanent peace deal continue .

The denial, reported by multiple news outlets on Monday, comes as indirect talks between Washington and Tehran remain deadlocked over fundamental disagreements on Iran’s nuclear program, the reopening of the Strait of Hormuz, and the release of Iranian frozen assets .

“No sanctions relief will happen ‘for free’ without any reciprocal action by Tehran,” the U.S. official said, according to WION News . A separate U.S. official, who declined to be named, told Reuters that the Iranian media reports claiming an agreement on oil sanctions were false .

The Contradictory Claims

The confusion originated from reports in Iran’s semi-official Tasnim News Agency on Monday, which quoted an unnamed source close to the Iranian negotiating team as claiming that the United States had agreed to waive oil sanctions during ongoing peace negotiations. The report suggested that the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) would issue waivers to allow Iranian oil exports while talks continued .

Some Iranian sources went further, suggesting that the U.S. had agreed to release 25 percent of Iran’s frozen funds held in foreign banks and had shown flexibility on allowing Iran to continue some peaceful nuclear activity under IAEA supervision .

However, a senior U.S. official quickly pushed back, telling Axios and other outlets that the Iranian counter-proposal submitted over the weekend contained only “token improvements” on previous versions and lacked meaningful concessions on suspending uranium enrichment or handing over Iran’s stockpile of highly enriched uranium .

The U.S. Position: No Concessions Without Reciprocity

The U.S. official was unequivocal that any sanctions relief would require concrete steps from Tehran.

“It’s time for the Iranians to throw a bit of candy out,” the official said. “We need some real, sturdy, and granular conversation [regarding the nuclear program]. If that’s not gonna happen, we will have a conversation through bombs, which will be a shame” .

The official further explained that the U.S. and Iran are not engaged in direct negotiations on the substance of an agreement, but rather in indirect talks to try to develop consensus around what future negotiations would look like .

Iran’s Proposal: Deferring Nuclear Issues

According to sources familiar with the Iranian proposal, Tehran’s latest 14-point plan focuses first on securing an end to the war, reopening the Strait of Hormuz, and lifting maritime sanctions. The more contentious issues around Iran’s nuclear program and uranium enrichment would be deferred to later rounds of talks .

IssueIran’s Position in Latest ProposalU.S. Response
Oil sanctionsSeeks immediate waiver during talksDenies any agreement; demands reciprocity
Frozen assetsDemands full release; US reportedly offered 25%Partial release possible only with concessions
Uranium enrichmentDefers to later talks; insists on right to enrichDemands suspension and stockpile transfer
Nuclear programMaintains peaceful intent; rejects “excessive demands”Demands verifiable limits

A Tasnim source called U.S. demands for Iran to hand over its enriched uranium and severely restrict its nuclear program “purely political excuses and contrary to the rights of the Iranian people” .

“The Americans must understand that Iran will never accept ending the war in exchange for nuclear commitments,” the source said, reiterating Tehran’s longstanding position that it has no intention of building a nuclear weapon .

The Stalled Diplomatic Process

The competing claims come as U.S.-Iran negotiations through Pakistani mediators show little sign of progress. A Pakistani source familiar with the talks told Reuters that the sides “keep changing their goalposts” and warned that “we don’t have much time” .

Earlier this month, President Trump rejected Iran’s previous peace proposal, calling it “garbage” and “totally unacceptable.” Among the conditions he found unacceptable were Iran’s demands for U.S. war reparations, recognition of its sovereignty over the Strait of Hormuz, and the lifting of all sanctions .

Despite the public acrimony, backchannel communications continue. Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed Monday that Tehran’s views had been “conveyed to the American side through Pakistan” but gave no details .

Military Options Under Consideration

As diplomatic efforts stall, the Trump administration is reportedly weighing military options. Trump is expected to convene his top national security team on Tuesday to discuss the deteriorating situation .

Trump has warned that “the clock is ticking” and threatened that if Iran does not show flexibility, “they are going to get hit much harder.” On Monday, Trump announced on Truth Social that he had instructed the military not to proceed with a “scheduled attack” at the request of Qatari, Saudi, and Emirati leaders, but said he has ordered preparations for “a full, large scale assault” if a deal is not reached .

A senior U.S. official confirmed that the Iranian counter-proposal submitted over the weekend was considered insufficient for a deal, raising the prospect of renewed hostilities .

Ceasefire Still Holding, but Fragile

Despite the diplomatic deadlock and military posturing, the ceasefire brokered by Pakistan on April 8 remains officially in place. However, Iranian Foreign Minister Abbas Araghchi has described the truce as “very shaky” and acknowledged that Tehran is trying to keep it alive “to give diplomacy a chance” .

Frequently Asked Questions (FAQs)

Q1: Did the United States agree to lift oil sanctions on Iran?

A: No. A senior U.S. official has categorically denied Iranian state media reports claiming that the U.S. agreed to waive oil sanctions during ongoing negotiations. The official stated that “no sanctions relief will happen ‘for free’ without any reciprocal action by Tehran” .

Q2: What did Iranian state media claim?

A: Iran’s semi-official Tasnim News Agency reported on Monday, citing an unnamed source close to the Iranian negotiating team, that the U.S. had agreed to waive oil sanctions during peace negotiations. Other Iranian sources claimed the U.S. had offered to release 25% of Iran’s frozen funds .

Q3: Why did the U.S. reject the latest Iranian peace proposal?

A: U.S. officials said Iran’s latest counter-proposal contained only “token improvements” on previous versions and lacked meaningful concessions on suspending uranium enrichment or handing over Iran’s stockpile of highly enriched uranium .

Q4: What does Iran want in exchange for a deal?

A: Iran’s 14-point proposal focuses on securing an end to the war, reopening the Strait of Hormuz, lifting maritime sanctions, releasing frozen assets, and obtaining war reparations. Nuclear issues would be deferred to later rounds of talks .

Q5: Is the ceasefire still in place?

A: Yes, the ceasefire brokered by Pakistan on April 8 remains officially in place, though Iranian officials have described it as “very shaky.” Both sides continue to communicate indirectly through Pakistani mediators .

Q6: What military options is the Trump administration considering?

A: Trump has convened his national security team to discuss military options, including potentially resuming “Project Freedom” to reopen the Strait of Hormuz. A senior U.S. official warned that negotiations may continue “through bombs” if Iran does not shift its position .


This is a developing story. Reflecto News will continue to provide updates on the status of U.S.-Iran negotiations, any confirmation or denial of sanctions relief, and the trajectory of the fragile ceasefire.

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