Iran and the United States held a third round of nuclear talks in Geneva on Thursday, with both favoring a diplomatic solution even as Washington imposed sweeping new sanctions and bolstered its military presence in the Middle East, fueling fears of a broader regional conflict.

Iran's Foreign Minister Seyed Abbas Araghchi said a "fair and balanced deal" is within reach at the indirect talks viewed as a last chance for diplomacy, while reiterating that Iran is not seeking an atomic weapon and will not give up its "right to the peaceful use of nuclear technology".

Araghchi on Wednesday night met his Omani counterpart Sayyid Badr bin Hamad bin Hamood Albusaidi in Geneva, stressing that the success of the negotiations hinges on the other side's sincerity and its avoidance of contradictory actions and statements.

The meeting marked the effective start of the latest indirect negotiations, said a statement released by Iran's Foreign Ministry early on Thursday.

The negotiations are led on the US side by US President Donald Trump's special envoy Steve Witkoff and son-in-law Jared Kushner.

Witkoff said Washington is demanding that any future nuclear deal remain in effect indefinitely, online media outlet Axios reported on Wednesday. "Whether we get a deal or not, our premise is: you have to behave for the rest of your lives," he said.

The talks unfolded against the backdrop of continued mistrust, with rhetoric from both sides oscillating between confrontation and engagement. The West alleges Iran is seeking an atomic bomb, but Tehran insists its nuclear program is peaceful.

In Washington, US Vice-President JD Vance accused Iran of attempting to rebuild its nuclear program after US attacks on Iranian nuclear sites in June, and said Tehran should take Washington's threats of military action seriously.

The US Treasury Department also announced sanctions against more than 30 individuals, entities and vessels it said had helped fund Iran's oil sales, ballistic missile program and weapons production.

Potential confrontation

A day earlier, Trump, in his State of the Union address, appeared to lay the groundwork for a potential military confrontation, accusing Iran of harboring "sinister nuclear ambitions" and developing missiles capable of striking the US — claims that Iran flatly rejected.

Esmaeil Baghaei, the Iranian Foreign Ministry spokesman, wrote on X, "All allegations regarding Iran's nuclear program, Iran's ballistic missiles and the number of casualties during January's unrest is simply repeated 'big lies'."

The first round of talks was held in Oman on Feb 6, followed by a second session in Geneva on Feb 17. Araghchi said afterward that the two sides had reached a tentative understanding on the broad principles that would guide further discussions, though no substantive agreement was reached.

Iranian President Masoud Pezeshkian said on Wednesday that he had a "favorable outlook" for the negotiations. "We are continuing the process under the guidance of the supreme leader so that we can move beyond this 'neither war nor peace' situation," he said.

However, both sides remain sharply divided — even over the scope and sequencing of relief from crippling US sanctions — a senior Iranian official told Reuters.

Trump has repeatedly threatened strikes if Iran fails to cut a deal on its atomic program. Iran has warned that any US strike would prompt retaliatory attacks on US military bases throughout the Middle East.

"If you choose the path of diplomacy … we will also be at that table. But if you resort to deception, lies, flawed analysis and false information, and launch an attack amid negotiations, you will undoubtedly taste the firm blow of the Iranian nation," warned Iran's parliament speaker, Mohammad Bagher Ghalibaf.

cuihaipei@chinadaily.com.cn