The United States and Iran remain at odds over a potential peace deal, as President Donald Trump dismissed Tehran's latest proposal, calling it "TOTALLY UNACCEPTABLE" in a social media post. The Iranian response, delivered to mediator Pakistan on Sunday, demanded an end to the double blockade on the Strait of Hormuz, the lifting of American sanctions, and compensation for war damages. Iran also called for the release of frozen assets and security guarantees across the region, including in Lebanon, where fighting persists between Israel and Iran-backed Hezbollah despite a US-brokered ceasefire announced on April 16. Foreign Ministry spokesperson Esmaeil Baghaei described the demands as "generous and responsible," emphasizing safe passage through the Strait of Hormuz and regional stability.
The US had reportedly presented a 14-point plan proposing a 30-day negotiation period, sanctions relief, and the release of billions in frozen Iranian funds. However, Washington continues to press for measures targeting Iran's nuclear programme, including a temporary moratorium on enrichment and limited civilian enrichment only after several years, according to Axios. Israel's Prime Minister Benjamin Netanyahu insisted the war was not over, stating that enriched uranium must be removed, enrichment sites dismantled, and Iran's proxy and missile capabilities addressed. Trump previously threatened Iran with escalated bombing if it refused US terms, even as domestic pressure mounts for him to seek congressional approval for continued military action. Oil prices edged toward $100 per barrel amid fears of renewed conflict. The US and Iran have not agreed on sequencing—whether sanctions relief comes before or after nuclear concessions—and Iran insists on immediate economic relief prior to negotiations.
Trump rejects Iran's peace terms while threatening intensified bombing, yet faces domestic limits on unilateral military escalation. Iran demands immediate sanctions relief and asset release, refusing to negotiate without prior economic concessions. The continued fighting in Lebanon, despite a declared ceasefire, shows the agreement lacks enforcement. Any deal must reconcile US nuclear demands with Iran's insistence on upfront economic relief, a gap neither side has bridged.
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