Iran Seeks to Regain Influence Through a Regional Nuclear Fuel Alliance

20th May 2025

3 minutes read

Iran Seeks to Regain Influence Through a Regional Nuclear Fuel Alliance

Tehran is attempting to reframe its nuclear program as part of a broader regional initiative, hoping to break out of international isolation and ease Western concerns over its intentions.

On Monday, Iran expressed support for the creation of a regional nuclear fuel alliance, while reaffirming its right to enrich uranium — a position it maintains amid ongoing indirect talks with the United States. The proposal carries both pragmatic and strategic implications, blending political realism with regional ambition.

Since April 12, Iran and the United States have been engaged in nuclear talks mediated by Oman. U.S. officials remain firmly opposed to any uranium enrichment by the Islamic Republic.

Iran, however, insists that its right to peaceful nuclear energy is non-negotiable, asserting that its activities are in full compliance with the Non-Proliferation Treaty (NPT) and denying any military dimension to its program.

By proposing a regional fuel alliance, Iran aims to present its nuclear activities as part of a collaborative effort, which may help lift its diplomatic isolation and reassure Western powers about the program’s true purpose.

Such an alliance could also serve as a platform for dialogue with neighboring countries — even those skeptical of Iran’s intentions — potentially paving the way toward normalizing strained regional relations.

Iran views the initiative as a means to bolster regional cooperation on shared security challenges, despite deep political divides. It is seen by many as a response to other nuclear ambitions in the region or an attempt to establish a new balance of power.

For Tehran, the alliance would also serve to assert its leadership in the nuclear field, building on decades of technical expertise and domestic capabilities.

According to The New York Times, Iran has proposed a joint uranium enrichment project involving Arab states and U.S. investment.

In a press briefing, Iranian Foreign Ministry spokesman Esmail Baghaei stated: “Iran has never formally proposed such an initiative,” but added, “if this proposal exists, Iran would welcome and join it,” as reported by the official IRNA news agency.

Baghaei explained that one of the rationales behind this idea is the increasing demand for nuclear energy across West Asia.

Currently, the United Arab Emirates operates the only nuclear power plant in the Arab world. Saudi Arabia announced plans in 2018 to build 16 nuclear reactors over the next two decades.

On Sunday, Iran’s Foreign Minister Abbas Araghchi affirmed that the country will continue uranium enrichment “with or without an agreement” with world powers.

Iran is now enriching uranium to 60% purity, far above the 3.67% limit set by the 2015 nuclear agreement, but still below the 90% threshold required for weapons-grade material, according to the International Atomic Energy Agency (IAEA).

Yet, ongoing regional tensions and a deep lack of trust between Iran and many of its neighbors cast serious doubt on the viability of such a nuclear alliance. The stance of major world powers, particularly the United States and Israel, will be critical — and may ultimately block the initiative altogether.