Iran defies US nuclear demands and warns of strikes on European bases

Iran has firmly rejected demands to surrender its enriched nuclear material, declaring that the substance is essential for the construction of nuclear-powered submarines. This position, articulated by Security Chief Mohsen Rezaei on Wednesday, appears to directly counter US calls for a political settlement that involves handing over the material.

In an interview with Al Mayadeen TV, Rezaei emphasized that Iran will not permit even a single speck of enriched uranium to leave the country. He explained that the material is required for designing vessels and submarines powered by nuclear energy. Rezaei noted that Tehran has communicated to Moscow that the enriched stockpile will remain in Iran and be utilized by the country itself.

The remarks come one day after US Secretary of State Marco Rubio described Iran's conditions for a political deal as absurd. Rubio maintained that the Trump administration holds a negotiating advantage due to its ongoing maritime blockade of Iran. Rezaei, who has become a prominent media figure in recent months for explaining Iran's stance, adopted a defiant tone during the broadcast.

Rezaei warned that if American aircraft launch from US military bases, whether located in Europe or other distant regions, to bomb Iran, Tehran would strike those bases in return. He stated that any renewed US attacks would target more distant American military installations, including locations that have not previously been hit. He also suggested that Iran might attack certain islands that the US believes are beyond the range of its missiles.

The reference to distant islands likely points to Diego Garcia in the Indian Ocean, where the US maintains a military base. It is widely believed that this facility was used during the US attack in February 2026 and in the months that followed. Since the Republican Party suffered a significant defeat in the US midterm elections on November 3, the Trump administration has adopted more deescalatory language.

Despite President Donald Trump's assertion that the war is effectively over and that there is momentum toward ending the conflict, the two sides remain distant on key issues. These include the level of nuclear enrichment, the lifting of sanctions, and control over the Strait of Hormuz. While Washington characterizes Iran as a defeated foe, Tehran is working to recover from the US-Israeli attacks that began in February.

Bloomberg reported on Tuesday that Iran has regained the ability to produce approximately 50 ballistic missiles per month. This rate represents about half of its prewar capacity, allowing the country to build a substantial arsenal in the event that hostilities resume. On Wednesday, Iranian state media reported the unveiling of a new underground missile city that houses both ballistic and cruise missiles.

The US's allies in the Gulf region, including the UAE, Qatar, Bahrain, and Kuwait, bore the brunt of Iran's retaliation during the conflict, facing thousands of missile and drone strikes. Although direct attacks have paused, Iran continues to strike vessels in the Strait of Hormuz while competing with the US for control of the waterway. Additionally, the Iran-aligned Houthis are bombing Saudi Arabia to extend their territorial influence in Yemen.

Allianz Trade, an insurer, reported on Wednesday that Gulf countries have sustained over $200 billion in damage and economic losses from the war. The firm warned that this figure could quadruple by 2030. The report stated that physical damage is concentrated in economies dependent on the Strait of Hormuz, particularly within energy infrastructure.