Iran has offered to never stockpile nuclear material and will reduce its current stockpile to "almost nothing", in return for elimination of sanctions,  according to sources close to the high-stakes talks which took place indirectly with the US in Geneva on Thursday.

It is understood to be the first time, through multiple rounds of talks, that Tehran has made such an offer and they are now willing to work with the International Atomic Energy Agency to "down-blend" their stockpile either by converting it into fuel or exporting it.

Specifics, such as enrichment levels, are yet to be discussed in detail but Iran would remain "well below the 20% level that is the red zone" one person with knowledge of the talks said. However there has been no decision on what would happen to its existing nuclear facilities.

The US team of Jared Kushner and Steve Witkoff held indirect negotiations with an Iranian delegation that included Foreign Minister Abbas Araghchi in the Swiss city; the talks were mediated by the Omani Foreign Minister Badr Albusaidi.

Following the conclusion of the talks, Albusaidi tweeted that "significant progress" had been made but offered no specifics. Araghchi tweeted that the talks were "the most intense so far" and reiterated Tehran's demand that sanctions are lifted, although that remains a major sticking point between the sides. The White House is yet to comment.

Through conversations with people who have direct knowledge of what was discussed, Sky News understands Iran is also willing to offer the US companies access to its considerable oil and gas reserves and has suggested it could look to purchase American products, such as civilian aircraft, if sanctions were lifted.

It's hoped this will appeal to US President Trump, who typically treats foreign policy as a business transaction and might be persuaded by the promise of economic rewards.

The possibility of a non-aggression pact, where Iran and its proxies would formally agree not to attack first, is also being considered.

Despite the positive vibes, however, considerable gaps remain and it's understood there is still a long way to go before the two sides are in a position to agree to a binding and realistic deal. The threat of war remains high with a massive US military build-up on standby in the region.

Hawks in Washington and Israel strongly believe Iran is just playing for time and will be urging the US president to take action.

"I will remain pessimistic until I see the military being pulled back," a senior diplomat said, but following the Geneva talks "we are now in a good place to agree that Iran remains a non-nuclear weapon state".

One issue that wasn't discussed in detail was Iran's ballistic missile programme. In recent days the US administration has claimed, without evidence, that Iran has the ability to strike mainland US. Iran's preference is for that to be dealt with regionally, possibly through talks with the Gulf Co-operation Council first, rather than Washington.

In a further sign of progress, technical talks will be held in Vienna on Monday. They will focus on three main points: How to deal with Iran's current stockpile and in what timeframe; how a future monitoring mechanism could work; and to understand Iran's plans for a civil nuclear programme over the next decade or so.

Depending on other events, the main negotiating teams are expected to meet again in around a week's time, although exact details and a location are yet to be confirmed. It's likely to be in the Middle East.

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On the face of it, the Geneva talks seem to have made genuine progress and possibly averted the immediate threat of war, but Mr Trump's position is still the big unknown and he might yet decide that regime change is preferred to what could be long and complicated nuclear discussions.

The situation remains incredibly tense and the window for action, if that is what Trump decides on, is closing with his military forces unable to remain on high alert indefinitely.

(c) Sky News 2026: Iran and US compromise over nuclear stockpile - but Trump's window for action grows smalle