U.S. says Iran nuclear talks may advance as Senate pressure builds over war strategy

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US-Iran nuclear talks advance

Highlights

Senate testimony reveals Iran may soon re-engage on nuclear talks it previously rejected, with potential movement expected within days.
Rubio credits Operation Epic Fury with significantly reducing Iran's missile and drone capacity, yet acknowledges Iran retains large numbers of drones due to ease of production.
Congressional concern rises over economic impacts and presidential war powers, as lawmakers demand transparency on the administration's Iran policy and war strategy.

Senate hearing sharpens focus on diplomacy and war aims

As reported by CNBC, Rubio tells the Senate Foreign Relations Committee that contacts with Iran are continuing through intermediaries and that Tehran may engage on nuclear issues it rejected "just a month ago, just a year ago." He says such movement could come "today," "tomorrow" or "next week," while cautioning that any outcome is not certain to produce an agreement acceptable to lawmakers or the U.S. public.

Rubio, appearing in his first public testimony on the Iran war since U.S. and Israeli strikes began Feb. 28, says the administration wants to test how far Iran is willing to go in negotiations. His remarks mark a notable change in tone from the previous day, when President Donald Trump says he does not care whether talks with Iran are over.

He also defends Trump's decision to strike Iran, arguing that Tehran has been building a conventional shield of missiles, drones and naval assets around its nuclear program. Rubio says the campaign, which he calls Operation Epic Fury, is highly successful in reducing Iran's capacity to build missiles and drones, although he adds that Iran still has many drones because they are easy to produce.

Hormuz demands and broader policy concerns

Rubio says reopening the Strait of Hormuz remains essential to any de-escalation. He says Iran must declare the waterway open, stop firing on or threatening commercial vessels, end toll charges, assist with mine removal and pledge not to attack shipping passing through the strait.

The hearing also highlights growing concern in Congress over the war's economic effects and Trump's authority to continue the conflict without lawmakers' approval. Senator Jeanne Shaheen, the committee's top Democrat, accuses the administration of sidestepping congressional oversight and says voters are asking for economic relief at home rather than regime change in Havana, Caracas or Tehran.

Although the session centers on the State Department's FY2027 budget request, questioning expands beyond Iran to Cuba, Venezuela and wider regime-change concerns. Rubio is scheduled to appear before several House and Senate panels this week as pressure builds for clearer answers on the administration's foreign policy and endgame.

In our earlier coverage of the Bank of England’s inflation concerns tied to the Iran war, we noted policymaker Megan Greene warning that a prolonged conflict could trigger an energy-driven price shock that spreads across the UK economy. She signaled that if inflation pressures broaden, the case for higher interest rates could strengthen in the coming weeks or months, despite the Bank recently holding rates at 3.75%.

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