Island vibes? US and Iran joust over where to enrich uranium

The location of a proposed uranium enrichment consortium to help resolve Iran's nuclear impasse is emerging as a central point of contention, as Tehran insists enrichment must occur on its own soil.

Axios and The New York Times reported earlier this week that US negotiator Steve Witkoff has proposed creating a regional consortium to break the deadlock in stalled nuclear talks.

In a June 4 speech, Supreme Leader Ali Khamenei rejected the US proposal—delivered by Oman’s Foreign Minister Badr Albusaidi on May 31—saying a halt to enrichment inside Iran was “out of the question.”

Iranian Foreign Ministry Spokesman Esmail Baghaei had earlier said Tehran would welcome a nuclear fuel consortium “if it were proposed,” but added: “It cannot be a substitute for enrichment within Iran.”

Details of the proposal

According to Axios on June 2, Witkoff’s proposal would, restrict enrichment to civilian-grade levels (3%), suspend underground enrichment for a negotiated period, limit above-ground enrichment to reactor fuel standards under IAEA guidelines and require Iran’s immediate adoption of the IAEA’s Additional Protocol

On June 3, Axios quoted a senior Iranian official as saying Iran might accept a consortium based in Iran—but not if enrichment occurred elsewhere.

Qeshm, Kish or some other island?

A New York Times report on the same day noted that Omani and Saudi officials had discussed placing the facility on a Persian Gulf island.

“This would potentially give both sides a talking point,” the Times wrote, with Iran claiming enrichment is still happening and the US saying it isn’t on Iranian soil.

Israel Hayom cited an unnamed Arab source suggesting the facility might be built on one of three disputed islands: Greater Tunb, Lesser Tunb or Abu Musa. All are controlled by Iran but claimed by the UAE.

The outlet described the idea as a “diplomatic sleight of hand,” sparking backlash on Iranian social media, where critics warned it would undermine Iran’s sovereignty claims.

Alternative: the Oman model

Some nuclear experts, including former Iranian negotiator Hossein Mousavian, have promoted a model where Oman would host the facility, operated by Iran under IAEA supervision.

In this setup, ore would be processed in Saudi Arabia, enriched product would be stored there and a commercial office based in the UAE.

Possible participants

Axios reported the consortium could include the US, Iran, Saudi Arabia, the UAE, Qatar, and possibly Turkey. Other outlets have mentioned Oman, Egypt, and Russia.

A June 3 editorial in Arman-e Melli argued Egypt’s inclusion would offer both regional legitimacy and diplomatic utility.

“Egypt’s good relations with the US and Europe could serve as a bridge between Iran and the West,” it noted.