What are the issues that Iran and the US need to resolve before they can reach a peace agreement?

Here are the key issues that the United States and Iran face as they try to reach a deal in order to end their war which has now entered its fourth month.

HORMUZ BLOCKADE AND GULF BLOCKADE

The 'closure of the Strait of Hormuz by Iran, which is normally used to transport around a fifth of?oil shipments and liquefied gas, has caused an unprecedented oil shock that has driven up the price of fuel, food, and fertiliser.

Washington's priority is to reopen the Strait, and Tehran's leverage is to reopen it. But this could take some time.

Iran claims to have laid sea mines which could be hard to find.

Iran's exports and revenue are affected by the U.S. ban on Iranian ports. Tehran is determined to lift the blockade.

NUCLEAR

The United States (U.S. The?U.S. Iran has always denied that its atomic program is only for?peaceful purposes. Focus is on Iran's enrichment of Uranium which can be used to make fuel for nuclear power, but also material for a "warhead". The nuclear issue is very complex. Iran has some uranium enriched to 60% purity, which is far above the 5% used in most electricity reactors. Other stocks are?enriched to 5%, 20% and 2%. Iranian sources say that Iran may agree to have a part of its highly-enriched uranium dilute in a friendly country to uranium with 5% purity.

Many other issues will still need to addressed, including how long the Iranian nuclear program would be stopped, whether the nuclear sites would dismantled and what would happen to the uranium that has been enriched to levels below the purest, the future for Iran's advanced uranium centrifuges, as well as the rules that govern an inspections regime.

BALLISTIC MISSILES

Before the war, the U.S. demanded that Iran limit its range of ballistic missiles to prevent them from reaching Israel. Iran has said that its right to possess conventional weapons was non-negotiable, and it still maintains a large arsenal.

SANCTIONS & FROZEN ASSETS The economy of Iran has been negatively affected by sanctions over the past few years. This contributed to the unrest that occurred in January. Tehran needs the sanctions to be lifted and tens billions of dollars in Iranian oil revenue frozen abroad to be released. The country also wants compensation for war damages.

Trump has been critical of the United States for returning some assets that were 'frozen' to Iran as part of a 2015 Nuclear Deal. Some media reported that the latest draft of agreement would include an Iranian investment program.

LEBANON

Iran has repeatedly said that Israel’s war in Lebanon against its ally Hezbollah must be part of any deal. Israel and Lebanon reached a ceasefire agreement last month, but Israel and Hezbollah have accused each other of violating the agreement repeatedly. Israel's military has also intensified its campaign in southern Lebanon.

Israel will oppose any U.S. Iran agreement that restricts its ability to act on Lebanon. (By Angus McDowall, Michael Georgy and Gareth Jones Editing)

(source: Reuters)