Iran’s peace proposal seeks reparations, sanctions relief, and US troop withdrawal

DUBAI — Iran has presented a renewed peace proposal to the United States that includes demands for reparations for war-related destruction, the withdrawal of U.S. forces from areas near Iran, and an end to hostilities across regional fronts, according to Iranian state media.

In Tehran’s first public remarks on the proposal, Iranian Deputy Foreign Minister Kazem Gharibabadi said the package also calls for the lifting of sanctions, the release of frozen Iranian funds, and the removal of what Iran described as a U.S. maritime blockade, state news agency IRNA reported Tuesday.

The reported terms appear largely unchanged from an earlier Iranian proposal rejected last week by U.S. President Donald Trump, who dismissed it as “garbage.”

Trump said Monday that he had suspended plans for renewed attacks on Iran after receiving a new peace initiative from Tehran. He added that there was now a “very good chance” of reaching an agreement aimed at limiting Iran’s nuclear program.

Reuters reported it could not independently verify whether preparations had been underway for a renewed military campaign following the suspension of hostilities.

Pressure remains high on both sides to secure an agreement that could help reopen the Strait of Hormuz, a strategic route for global oil and commodity shipments. Trump has repeatedly expressed optimism that a deal is possible while also warning of severe military action if negotiations fail.

In a social media post, Trump said leaders from Qatar, Saudi Arabia, and the United Arab Emirates had urged him to postpone military action, believing that an agreement acceptable to both the United States and Middle Eastern countries could still be reached.

Speaking to reporters later Monday, Trump said Washington’s central objective remains preventing Iran from acquiring nuclear weapons.

“There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I would be very happy,” Trump said.

A Pakistani source confirmed that Islamabad, which hosted the only round of peace talks last month and has acted as a communication channel between the two sides, had relayed Iran’s latest proposal to Washington.

The source, however, described negotiations as difficult, saying both parties continued to shift their negotiating positions and warning that time for diplomacy may be limited.

While neither Washington nor Tehran has publicly disclosed concrete concessions, a senior Iranian official indicated Monday that the United States may be showing greater flexibility in some areas.

According to the source, Washington has discussed releasing roughly one-quarter of Iran’s frozen overseas assets, amounting to tens of billions of dollars. Iran is seeking the full release of those funds.

The same source said U.S. negotiators had shown increased openness to allowing limited Iranian nuclear activity for peaceful purposes under the supervision of the International Atomic Energy Agency.

The United States has not publicly confirmed any agreements or concessions made during negotiations. A U.S. official speaking on condition of anonymity also denied reports by Iran’s Tasnim news agency that Washington had agreed to suspend oil sanctions during the talks.

The conflict, launched in late February, has caused heavy casualties and widespread displacement across the region. A ceasefire in early April largely halted the U.S.-Israeli bombing campaign against Iran, though regional tensions remain elevated.

Israeli military operations in Lebanon, aimed at the Iran-backed Hezbollah movement, have reportedly killed thousands and displaced hundreds of thousands of civilians. Iranian missile and drone attacks targeting Israel and neighboring Gulf states have also caused casualties.

Although the Iran ceasefire has generally held, recent drone launches from Iraq toward Gulf states, including Saudi Arabia and Kuwait, have raised concerns over renewed instability.

Trump and Israeli Prime Minister Benjamin Netanyahu have said the military campaign was intended to curb Iran’s regional influence, dismantle its nuclear program, weaken its missile capabilities, and reduce support for allied militant groups.

Despite months of conflict, Iran retains stockpiles of highly enriched uranium and continues to possess missile, drone, and proxy capabilities that regional powers view as a threat.

Iran’s clerical leadership, which faced domestic unrest earlier this year, has remained in power despite sustained military and political pressure.