The United States and Iran are set to hold a third round of nuclear talks in Geneva on Thursday, Oman’s Foreign Minister Badr Albusaidi confirmed, as concerns grow over the risk of military conflict between the two sides.

The meeting comes against a backdrop of heightened tensions, with U.S. President Donald Trump warning that “really bad things” could happen if no agreement is reached. Washington has also increased its military presence in the Middle East, underscoring the stakes of the negotiations.

Oman continues to act as a mediator in the indirect talks between Tehran and Washington.

Iran Signals Cautious Optimism

Iran has struck a cautiously optimistic tone ahead of the talks. President Masoud Pezeshkian said recent negotiations had produced “encouraging signals”, while also noting the country’s readiness for any potential outcome.

Tehran is reportedly offering fresh concessions, including sending part of its highly enriched uranium abroad and diluting the remainder, in exchange for sanctions relief and recognition of its right to peaceful nuclear enrichment.

However, key sticking points remain unresolved, particularly over the sequencing and scope of sanctions relief.

Sharp Differences Persist

The United States continues to demand strict limits on Iran’s nuclear activities, including curbs on uranium enrichment, which it sees as a pathway to nuclear weapons. Iran denies seeking a bomb and insists on its right to civilian nuclear development.

Washington is also pushing to broaden the scope of talks to include Iran’s missile programme and regional activities, proposals Tehran has publicly rejected.

Meanwhile, Trump’s envoy Steve Witkoff questioned why Iran had not “capitulated” under pressure, prompting a sharp response from Iran’s Foreign Minister Abbas Araqchi, who said: “Because we are Iranian.”

Diplomacy vs Escalation

Despite the rhetoric, both sides have indicated that a diplomatic solution remains possible. The talks in Geneva are seen as a critical test of whether recent concessions can translate into a breakthrough.

With Iran still believed to hold stockpiles of enriched uranium and the U.S. signalling readiness to escalate pressure, the negotiations may determine whether the standoff moves towards a deal or drifts closer to confrontation.

(with inputs from Reuters)