War damage compensation, Hormuz sovereignty: Inside Iran’s response to US proposal that Trump called ‘unacceptable’

An Iranian proposal delivered to the United States through mediator Pakistan called for demands for compensation for war-related damage and recognition of the Islamic Republic’s sovereignty over the Strait of Hormuz,local media reported

Iranian commuters walks past a large tiled image of Iran's current leader Ayatollah Mojtaba Khamenei, at the entrance to the metro in Tehran. (AFP)
Iranian commuters walks past a large tiled image of Iran’s current leader Ayatollah Mojtaba Khamenei, at the entrance to the metro in Tehran. (AFP)

On Sunday, US President Donald Trump rejected the Iranian response, calling it “totally unacceptable”.

Follow US-Iran war live updates here.

Inside Iran’s response to US peace proposal

  • In its response to the US peace proposal, Iran called for an immediate halt to the war and demanded a guarantee that no fresh attacks will be launched against the Islamic Republic, Tasnim reported.
  • It also demanded compensation for war-related damage and recognition of the Islamic Republic’s sovereignty over the Strait of Hormuz, Iran’s state broadcaster IRIB reported.
  • The response also called for the US office of foreign assets control (OFAC) to lift sanctions on Iranian oil sales for a 30-day period, along with an end to the naval blockade on Iran, as per the report.
  • Iran’s demands also include “Iranian management of the Strait of Hormuz if certain commitments are undertaken by the US”, the source told the news agency. However, they did not specify what those commitments would involve.
  • The news agency also cited the source as saying that Iran’s proposal calls for an end to the war across all fronts.
  • The proposed deal reportedly includes a 30-day negotiation period after the fighting ends to work out further details, Hezbollah-affiliated Al Mayadeen reported, citing sources.
  • It also mentioned that talks between Tehran and Washington will continue in written form through the Pakistani mediator for the time being, as per the report.
  • Meanwhile, the Wall Street Journal reported, citing people familiar with the matter, that Iran had expressed willingness to pause uranium enrichment for a shorter duration than the 20-year suspension proposed by the US. However, Tehran rejected any move to dismantle its nuclear facilities.

Trump rejects Iranian response, Tehran shrugs it off

Trump described Iran’s latest response to his proposal aimed at ending the 10-week conflict with the US as “TOTALLY UNACCEPTABLE” as both sides continued to observe a fragile ceasefire.

“I have just read the response from Iran’s so-called ‘Representatives,’” he wrote in a post on Truth Social. “I don’t like it.”

Meanwhile, a source quoted by Iran’s state-linked Tasnim news agency rejected Trump’s criticism of Tehran’s reply to the latest US proposal, saying Iranian officials were not trying to win Washington’s approval.

“No one in Iran drafts plans to please Trump,” the source said, according to Tasnim, adding that the US president’s reaction “does not matter at all.”

As a series of incidents continued to put pressure on the fragile ceasefire, it remained unclear whether the latest exchange of peace proposals between the two sides would help reopen the Strait of Hormuz.

With inputs from agencies

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