Iran and the United States on Monday downplayed the chances of an imminent breakthrough in the three-month-long war, as US Secretary of State Marco Rubio said Washington would either reach a good agreement with Iran or deal with it in another way.

Rubio told reporters in New Delhi that the United States would give diplomacy every possible chance to succeed before turning to alternatives, after US President Donald Trump said on Sunday that he had instructed his representatives not to rush into any agreement with Iran.

Rubio added that there is a very serious offer on the table regarding Irans ability to reopen the strait and enter into real, meaningful, and time-bound negotiations over the nuclear file, expressing hope that an agreement could be achieved.

Meanwhile, Iranian Foreign Ministry spokesman Esmail Baghaei said on Monday that Iran is negotiating to end the war, but is not currently discussing nuclear issues.

Baghaei added that a general framework had been reached, but no one could say that an agreement between the United States and Iran was imminent. He explained that the potential memorandum of understanding does not include specific details regarding the management of the Strait of Hormuz, which falls under the authority of the countries overlooking it.

Trump wrote on his Truth Social platform on Sunday that the US blockade imposed on Iranian vessels in the Strait of Hormuz would remain fully in effect until an agreement is reached, approved, and signed.

He added: Both sides should take their time to reach the right agreement.

Oil prices fell 5% to their lowest levels in two weeks on Monday as optimism grew that the United States and Iran may be nearing a peace agreement.

Points of disagreement

Trump raised expectations on Saturday when he said Washington and Tehran had largely negotiated a memorandum of understanding on a peace agreement that would reopen the Strait of Hormuz.

The Iranian Foreign Ministry spokesman said on Monday that Iran would not impose transit fees through the vital waterway, but added that it is natural for there to be costs for the services provided.

Before the conflict erupted, one-fifth of global oil and liquefied natural gas shipments passed through the strait.

Disagreements remain between the two sides over several complex issues, including Irans nuclear ambitions, Israels war in Lebanon against the Iran-backed Hezbollah militia, as well as Tehrans demands for sanctions relief and the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks.

A senior Trump administration official, speaking on condition of anonymity, revealed the broad outlines of the issues under negotiation.

The official said Iran had agreed in principle to reopen the Strait of Hormuz in exchange for the United States lifting the naval blockade and for Iran to dispose of its stockpile of highly enriched uranium.

He added that the United States believes Iranian Supreme Leader Ayatollah Mojtaba Khamenei has approved the general framework of the agreement.

The official rejected claims that Iran had not agreed to dispose of its stockpile of highly enriched uranium, saying: The issue is about how it will be implemented.

A second senior US official said on Sunday that the proposed framework gives negotiators a 60-day deadline to reach a final agreement.

Iranian sources had previously told Reuters that workable formulas could be found in the coming stages to resolve the dispute over the highly enriched uranium stockpile, including reducing enrichment levels under the supervision of the United Nations International Atomic Energy Agency.

Fragile truce

Iran has long denied US and Israeli accusations that it seeks to acquire nuclear weapons, insisting that it has the right to enrich uranium for civilian purposes, although the enrichment levels it has reached far exceed what is required for power generation.

Trumps popularity has been hurt by the wars impact on energy prices in the United States, while he has also faced pressure from Congress to limit his war powers. As a result, he has repeatedly spoken about the possibility of reaching an agreement to end the conflict that began when the United States and Israel launched attacks on February 28.

A fragile truce has remained in place since early April.

Responding to critics of his handling of the negotiations and his willingness to make concessions to Iran, Trump said: If I make a deal with Iran, it will be a good and proper deal... so dont listen to the losers criticizing something they know nothing about.

Any agreement that strengthens the current fragile truce would provide some relief to markets, but it would not immediately end the global energy crisis that has driven up fuel, fertilizer, and food costs.

The US-Israeli bombing campaign against Iran killed thousands of people inside Iran before it was suspended in early April. Israel also killed thousands more and displaced hundreds of thousands from their homes in Lebanon during its campaign against Hezbollah. Meanwhile, Iranian strikes on Israel and neighboring Gulf countries resulted in dozens of deaths.