Diplomats from Iran and the US have reported “tangible progress” in ongoing indirect talks intended to revive nuclear negotiations that had become deadlocked, sparking cautious optimism that a breakthrough may soon materialize. Both parties confirmed that another round of discussions is scheduled for next week in an unnamed European city.

Recent negotiations, conducted with mediation from European Union representatives, focused on key issues including enrichment limits, sanctions relief measures, and verification measures. Officials familiar with the talks described the atmosphere as one that was both serious and constructive.

“Our differences have narrowed on several technical aspects of the agreement,” according to an Iranian foreign ministry official on Sunday. While challenges remain, a clear path exists toward fulfilling obligations under the 2015 nuclear accord.

U.S. State Department representatives shared this sentiment, noting that while “significant gaps still remain,” progress had been made and dialogue would continue. They noted they remain committed to diplomacy and believe negotiated solutions remain possible, according to their spokesperson.

The 2015 Joint Comprehensive Plan of Action (JCPOA), which limited Iran’s nuclear activity in exchange for sanctions relief, collapsed when President Donald Trump unilaterally withdrew from it in 2018. Since then, Iran has steadily expanded its nuclear program beyond what was agreed upon under this pact and begun enriching uranium beyond levels agreed to under JCPOA.

The Biden administration has sought to revive or reach an alternative agreement that will halt Iran’s nuclear advances while soothing regional tensions, but talks have repeatedly been derailed by political disagreements, mutual mistrust and external events such as Iran’s relationship with Russia or Gaza conflict.

Sources suggest that the next round of talks may focus on taking a phased approach: freezing Iran’s most sensitive nuclear activities temporarily in exchange for partial sanctions relief, thus opening up opportunities for a broader deal to emerge.

Regional reactions remain mixed; Gulf Arab states and Israel have voiced skepticism regarding any agreement that does not permanently limit Iran’s nuclear program, while European powers have welcomed renewed diplomacy while encouraging both sides to refrain from further escalated conflict.

With Iran and Washington set to engage in their third round of nuclear negotiations in just over a week, this coming week could prove pivotal in shaping their nuclear diplomacy efforts.