Iran’s latest response to a US-backed ceasefire proposal demanded sweeping political, military and economic concessions from Washington — including sanctions relief, compensation for war damages, withdrawal of US forces from the region and recognition of Tehran’s authority over the Strait of Hormuz — terms swiftly rejected by President Donald Trump.According to reports by Iranian state-linked media and Al Jazeera, Tehran’s response came after Washington floated a 14-point proposal aimed at ending the 10-week conflict that has disrupted global oil supplies and heightened tensions across the Middle East.While neither side publicly released the full text of the proposals, the major disagreements revealed deep divisions over Iran’s nuclear programme, regional influence and control of critical shipping routes.Iran’s proposal reportedly called for the United States to lift sanctions, end the naval blockade on Iranian ports and remove restrictions on Iranian oil exports as part of any ceasefire arrangement.
Compensation for damages
Tehran also demanded the unfreezing of nearly $20 billion in Iranian assets and sought compensation estimated at around $270 billion for damages caused by US and Israeli attacks during the conflict.
Control over Strait of Hormuz
A major sticking point emerged over the Strait of Hormuz, the narrow waterway through which nearly one-fifth of the world’s oil supply moved before the conflict escalated. Iran reportedly sought formal recognition of its control over shipping through the strait, including the right to impose transit fees, while demanding an end to the US blockade on Iranian ports.Washington, however, has insisted the blockade would remain until a broader agreement is reached.
Nuclear control
Another key point of contention involved Iran’s nuclear programme. The US proposal reportedly demanded that Tehran completely halt its nuclear activities and hand over its stockpile of around 400 kilograms of highly enriched uranium to American custody.Iran rejected both demands, arguing that any restrictions on its nuclear programme could only be temporary and refusing to surrender its uranium stockpile.
Withdrawal of US forces
The Iranian response also linked any ceasefire to broader regional issues. Tehran reportedly demanded a withdrawal of US forces from the region and a halt to all hostilities, including Israel’s military campaign against Hezbollah in Lebanon.The US, meanwhile, has sought to curb Iran’s support for regional allies such as Hezbollah and Hamas while also pushing for limits on Tehran’s ballistic missile programme.
Trump calls proposal unacceptable
Within hours of the Iranian response becoming public, Trump dismissed it outright.“I have just read the response from Iran’s so-called “Representatives.” I don’t like it — TOTALLY UNACCEPTABLE! Thank you for your attention to this matter,” Trump wrote on Truth Social, without elaborating on which parts of the proposal Washington found unacceptable.The rejection immediately rattled global energy markets, with oil prices jumping by nearly $3 a barrel amid fears that the stalemate would prolong disruptions in the Strait of Hormuz.The continuing tensions have also exposed growing international concern over the conflict’s economic fallout. NATO allies have reportedly resisted US calls to send naval forces to reopen the strait without a comprehensive peace agreement and an internationally mandated mission.Trump is expected to discuss Iran with Chinese President Xi Jinping during his upcoming visit to Beijing, as Washington seeks Beijing’s help in pressuring Tehran towards a deal.Israeli Prime Minister Benjamin Netanyahu said the war was not over and insisted more work remained to dismantle Iran’s enrichment capabilities, ballistic missile programme and regional proxy network.Iranian President Masoud Pezeshkian responded by saying Iran would “never bow down to the enemy” and would continue defending its national interests “with strength.”Despite diplomatic efforts, tensions across the region remain high. The United Arab Emirates said it intercepted two drones launched from Iran on Sunday, while Qatar condemned a drone strike on a cargo ship in its waters. Kuwait also reported hostile drones entering its airspace.Clashes between Israel and Iran-backed Hezbollah have meanwhile continued in southern Lebanon despite an earlier US-brokered ceasefire.