Iran Proposes 7 Demands to End War as US Pauses Military Strike

Iran has presented a new draft agreement to the US, outlining a comprehensive set of demands aimed at ending the six-week conflict that has disrupted global energy markets.

Iran has formally presented the US with a new peace proposal that includes at least seven major demands, including an end to the war on all fronts, the withdrawal of US troops from the region, and full reparations for war damages. The proposal, delivered via Pakistani mediators, comes as former US President Donald Trump revealed he paused a planned military strike on Iran at the request of Gulf allies, highlighting the fragile nature of the current ceasefire.

"Dialogue does not mean surrender," Iranian President Masoud Pezeshkian said in a statement. "The Islamic Republic of Iran enters into dialogue with dignity, authority, and the preservation of the nation’s rights, and under no circumstances will it retreat from the legal rights of the people and the country."

The high-stakes negotiations have introduced significant volatility into global markets, particularly energy. While a fragile ceasefire since April 8 has capped major hostilities, the US has enforced a naval blockade on Iranian ports that has redirected 84 vessels and disabled four, according to US Central Command. In response, Iran has largely closed the strategic Strait of Hormuz, a vital conduit for about 21 percent of global petroleum liquids consumption, and announced a new authority to manage its traffic.

A successful deal could see the reopening of the strait and an easing of oil prices, but a failure could reignite the conflict with greater intensity. Mr. Trump warned Sunday that the "clock is ticking" for Tehran. The outcome hinges on whether the two sides can bridge the significant gap between Iran's comprehensive demands and Washington's reported focus on limiting Iran's nuclear program.

Iran's Demands Escalate

The new Iranian proposal, detailed by Deputy Foreign Minister Gharibabadi, significantly expands on previous talks. The core demands include a complete cessation of the war, which began after US-Israeli airstrikes on February 28, and a halt to Israel's campaign in Lebanon.

Financially, Tehran is demanding the lifting of all US sanctions, the release of tens of billions of dollars in frozen assets, and reparations for war damages. A senior Iranian source told Reuters that Washington had only agreed to release one-quarter of the frozen funds. Furthermore, Iran insists on the withdrawal of all US military forces from the surrounding region, a long-standing strategic goal.

This contrasts sharply with Washington's reported five-point list, which focuses on restricting Iran to a single nuclear site and transferring its highly enriched uranium to the US. Iranian media described the US terms as "excessive," stating Washington offered "no tangible concessions."

US Threatens Renewed Hostilities

While negotiations continue, the threat of renewed military action looms large. Mr. Trump said Monday he had instructed the military to "be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached."

He stated he paused a previously unannounced attack at the request of leaders from Qatar, Saudi Arabia, and the United Arab Emirates, who believed a deal was possible. "If we can do that without bombing the hell out of them, I would be very happy," Mr. Trump told reporters.

Iranian military commanders remained defiant, with the Khatam al-Anbiya joint command stating its forces were "ready to pull the trigger" and would respond "powerfully, and extensively" to any new attack. A Pakistani source involved in the mediation described the talks as difficult, noting both sides "keep changing their goalposts" and that "we don’t have much time."

This article is for informational purposes only and does not constitute investment advice.