The United States is in talks with Iran to reach an "understanding" regarding the Islamic Republic's nuclear peaceful program and securing a prisoner exchange deal, as well as the release of some of Iran's assets abroad that were frozen due to Washington's unilateral sanctions, Reuters reported on Friday.

Iranian Foreign Ministry spokesperson Nasser Kanaani highlighted earlier this week that Iran never abandoned the Joint Comprehensive Plan of Action (JCPOA) revival negotiations table, stressing that Tehran continues its diplomatic efforts to end US-led sanctions.

But Kanaani also denied talks with the US on the basis of an "interim nuclear agreement," suggesting that any deal with Washington will be on the sidelines of the JCPOA and would not end Iran's pursuit of a peaceful nuclear program.

Read more: Khamenei urges vigilance but open to conditioned nuclear agreement

The JCPOA, which the United States unilaterally pulled out from n 2018 under former President Donald Trump despite it being internationally legally recognized, saw a severe setback as Trump released a "maximum pressure" campaign against Tehran and exponentially issued new sanctions targeting the Islamic Republic.

Washington's withdrawal has also impacted its European allies, especially the guarantors of the agreement, as the bloc placed hopes that an agreement would give it access to the energy-rich country and also use its territory as transit toward Central Asian markets.

Earlier, the administration of US President Joe Biden also dismissed reports of an interim deal, using carefully chosen statements that might suggest Washington's desire to reach a less formal "understanding" that would help circumvent a congressional review process.  

Chairman of US House Foreign Affairs Committee Rep. Michael McCaul, a Republican, told Biden on Thursday that "any arrangement or understanding with Iran, even informal, requires submission to Congress."

Read more: US trying to end what Iran is not even trying to start: nukes

Prevent escalation

US State Department Spokesperson Matthew Miller denied on Thursday that there is any deal with Iran.

But he also confirmed that Biden's administration will "continue to use diplomatic engagements to pursue all of these goals," adding that if all else fails, "all options remain on the table."

According to Reuters, an Iranian official said, "Call it whatever you want, whether a temporary deal, an interim deal, or a mutual understanding - both sides want to prevent further escalation."

The first step "will involve prisoner exchange and unblocking part of Iran's frozen assets," he said.

In later stages, it might include sanctions waivers for Iran's oil exports in return for limiting the country's uranium enrichment at 60% and greater cooperation with the UN nuclear watchdog, he said as per the news site.

Cool down

On condition of anonymity, a Western official said he would describe it as a "cooling-down understanding," the report said.

Several rounds of indirect talks between the US National Security Council official Brett McGurk and Iran's top nuclear negotiator, Ali Bagheri Kani, had been held in Oman, he added.

In early June, US Special Envoy for Iran Rob Malley also met with Iran's ambassador to the United Nations after months of Tehran refusing direct talks, Financial Times claimed in a report published on June 4.

The order of the steps and how they might relate to the release of three detained US citizens held by Iran was also unclear. Officials have previously said freeing them might be connected to the release of frozen funds.

Kanaani said on Monday that two countries could exchange prisoners soon if the United States showed goodwill, stating that talks are being held between the two parties through intermediaries.

Washington's main objective currently is to prevent further escalation regarding the nuclear program, over concerns of a potential confrontation between the Israeli occupation and the Islamic Republic, the Western official pointed out.

"If [the] Iranians miscalculate, the potential for a strong Israeli response is something that we want to avoid."