Iran will not return to nuclear negotiations unless the United States agrees to provide compensation for damages sustained during last month’s war, Foreign Minister Abbas Araghchi told the Financial Times.
"They should explain why they attacked us in the middle of... negotiations, and they have to ensure that they are not going to repeat that," Araghchi said in an interview published on Thursday.
The official added that the US must take responsibility for striking Iran during ongoing diplomatic exchanges and that talks cannot resume without financial redress.
Iran confirms new enrichment plant near Isfahan was hit
A third enrichment facility near Isfahan was struck during last month’s conflict, Araghchi told FT, marking the first time Tehran has publicly acknowledged the site was targeted.
Araghchi said the plant had been prepared for activation in response to a formal censure by the International Atomic Energy Agency’s board of governors, which criticized Iran’s lack of cooperation.
“As far as I know, the preparations were made, but it was not active when it was attacked,” he said.
The site was hit as part of a broader US operation that, two days before a ceasefire, targeted Iran’s main enrichment centers at Fordow and Natanz and struck multiple facilities in Isfahan.
‘Road to negotiation is narrow’
Araghchi said he has been in contact with US envoy Steve Witkoff and that the two sides have exchanged messages before, during and after the war. He described the path to talks as narrow but not closed.
“I need to convince my hierarchy that if we go for negotiation, the other side is coming with real determination for a win-win deal,” he said. But he added that Tehran requires confidence-building measures before proceeding, including financial compensation and security assurances.
Araghchi repeated Iran’s rejection of US demands for “zero enrichment” and said Tehran would not abandon its rights under the Nuclear Non-Proliferation Treaty. He said Iran still retains the knowledge and technical capability to resume high-level enrichment if needed.
Talks with IAEA expected next month
Though Iran suspended cooperation with the International Atomic Energy Agency after the war, Araghchi said Tehran expects to hold technical talks with the agency in the coming weeks to discuss a “new modality of cooperation.” He said the talks would not involve inspections.
Western officials say Iran’s nuclear infrastructure was heavily damaged but not eliminated, and that a significant stockpile of highly enriched uranium may remain.
Warning to Europe over snapback
Araghchi also warned the UK, France and Germany that any move to trigger the UN snapback mechanism, which would restore sanctions lifted under the 2015 nuclear deal, would end Iran’s talks with them.
“If they do snapback, that means that this is the end of the road for them,” he said. “With the Europeans, there is no reason right now to negotiate because they cannot lift sanctions, they cannot do anything.”
The US said it remains open to direct talks with Iran but reaffirmed its maximum pressure strategy this week by announcing new sanctions on an Iranian oil shipping network.
More than 50 individuals and entities were designated, and over 50 vessels identified, in what the US Treasury called its largest Iran-related action since 2018.
“The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” Treasury Secretary Scott Bessent said in a statement.
According to the Treasury, Hossein Shamkhani—who uses false identities including “H,” “Hector,” and “Hugo Hayek,” the name on his Dominican passport—built the network by exploiting his father’s political reach.
“This network transports oil and petroleum products from Iran and Russia, as well as other cargo, to buyers around the world, generating tens of billions of dollars in profit,” the Treasury press release said.
'Targeting elite not people'
The agency added that the network’s containership fleet also carries cargo in and out of Iran, employing tactics similar to those used by sanctioned oil tankers—frequent changes in operators and management firms to obscure ties to the Shamkhani family and avoid blacklisting.
The sweeping sanctions freeze any US-based assets and prohibit Americans from doing business with the named entities.
The Shamkhani family has also been accused of using its illicit wealth to obtain foreign passports and luxury properties abroad—privileges far removed from the daily struggles of ordinary Iranians.
“These sanctions target the regime’s elite inner circle,” Bessent said, “not the people of Iran.”
Ali Shamkhani, a former defense minister and former secretary of Iran’s Supreme National Security Council, was sanctioned by the US in 2020. Thursday’s action suggests Washington sees his family as central to Tehran’s efforts to evade international economic pressure.
Though enforcement depends on cooperation from third parties, the move signals Washington’s intent to escalate pressure on Iran’s ruling elite amid stalled nuclear diplomacy and deepening ties between Tehran and Moscow.
In the capital, the price of Barbari—a widely consumed semi-flat bread—rose 31 percent to 46,000 rials (about $0.05), while the popular flat bread Taftoon jumped 52 percent to 20,000 rials ($0.02), and Lavash climbed 39 percent to 15,500 rials ($0.017).
Sangak, another staple, was set at 76,000 rials ($0.085), with a 20,000 rial ($0.022) surcharge for sesame toppings.
“The price of Barbari should have increased by at least 52 percent,” said Amir Karamlou, spokesman for Tehran’s traditional bakers’ union, adding that the current hike in the capital falls short of what was approved for other provincial capitals.
Reports from IRGC-linked Fars News highlighted a growing gap between official rates and prices charged by bakeries, which, while struggling to make ends meet, are keeping prices higher than those stipulated by the government.
The hike follows protests in recent months by bakers over cuts to subsidized flour. Some told Iran International they had already been forced to sell Sangak at 100,000 to 200,000 rials ($0.11- $0.22), citing flour shortages and black-market pricing.
Meanwhile, some provinces have yet to formally implement the government's increases, Mehr News reported, citing disputes over pricing authority and scope.
However, with the minimum monthly wage now worth just $120, well below the estimated $400 needed for basic living, the pressure on consumers continues to mount.
At least one third of the country now lives below the poverty line as the country's floundering economy continues to make life in the country ever more difficult.
Iran’s year-on-year inflation rate rose to 41.2% in July, marking the highest level in two years, according to the country’s Statistical Center. The 41.2% figure means households paid over 40% more for the same basket of goods and services compared to July last year.
The figure reflects an increase from 39.4% in June and comes amid a broader surge in prices for essential goods and food items.
The latest consumer price index report, released this week, showed that annual, monthly, and point-to-point inflation all climbed in the fourth month of the Iranian calendar year,which ended on July 22.