Iran’s rial weakens after US talks postponed

Iran’s currency fell sharply on Saturday after a planned fourth round of indirect talks with the United States was postponed, as sharp disagreements over uranium enrichment and inspections cast doubt on prospects for a breakthrough.

The rial dropped past 870,000 to the US dollar in Tehran’s open market, reversing gains made earlier last month during previous rounds of diplomacy in Oman. The currency had recovered to around 795,000 following the third round but slid again amid rising uncertainty.

US Secretary of State Marco Rubio said Thursday that Iran must end all uranium enrichment and open all nuclear facilities, including military sites, to American inspectors if it wants to avoid “serious consequences, including potential military action.”

“There’s no reason for enrichment unless you want a weapon,” Rubio told Fox News, adding that Iran must also abandon support for proxy groups and halt long-range missile development.

Iranian Foreign Minister Abbas Araghchi on Friday dismissed Rubio’s demands, warning that such “maximalist positioning and incendiary rhetoric achieve nothing except eroding the chances of success.” He said Iran has “every right to possess the full nuclear fuel cycle as a founding signatory to the NPT.”

“A credible and durable agreement is within reach,” Araghchi said. “All it takes is firm political will and a fair attitude.”

The International Atomic Energy Agency (IAEA) has confirmed Iran is the only non-nuclear-armed country enriching uranium to 60%.

No official reason has been given for the postponement of this weekend’s round. Iranian officials have acknowledged lingering disagreements over both general principles and technical details.

The rial had plunged to a record low of around 1,058,000 per dollar in early April before stabilizing during earlier rounds of talks.