Iran has rejected a US-backed ceasefire proposal and instead presented a sweeping 10-point peace plan that includes a demand to charge ships $2 million each to pass through the Strait of Hormuz, even as US President Donald Trump's deadline for Iran to reopen the waterway expires Tuesday evening.
As per Iranian state media and the New York Times, Iran conveyed the 10-point response to the US through Pakistan, which is acting as a key mediator in the conflict. The document, described by Iran's official IRNA news agency as the product of two weeks of reviews at the highest levels of the Iranian establishment, rules out a temporary ceasefire and instead lays out conditions for a permanent end to hostilities.
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Tehran's key demands include guarantees that Iran would not be attacked again, an end to Israeli strikes against Hezbollah in Lebanon, and the lifting of all international sanctions, Reuters reported.
In return, Iran said it would allow the passage of vessels via the Strait of Hormuz, subject to the payment of $2 million-per-ship transit fee. Iran said it would share the revenue with Oman, which lies across the strait, and allocate its portion toward rebuilding infrastructure damaged in recent US and Israeli strikes.
Iran's demands also include formal war compensation ratified by both the US Congress and the United Nations, along with legally binding guarantees against the reinstatement of sanctions, the report further added.
On the other hand, Trump acknowledged the proposal but dismissed it as insufficient. "They made a proposal, and it's a significant proposal. It's a significant step," Trump told reporters at the White House Easter Egg Roll. "It's not good enough, but it's a very significant step," he said, adding that intermediaries "are negotiating now.", Reuters said.
Trump had threatened to unleash a sweeping bombing campaign against Iranian power plants and bridges if Tehran did not reopen the Strait of Hormuz by Tuesday at 8 p.m. Eastern Time. He later said he was "highly unlikely" to extend the deadline.
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The standoff has significant consequences for the global economy. Iran's continued grip on the Strait of Hormuz has pushed global crude prices up more than 50% in a month to over $109 a barrel. The waterway handles roughly one-fifth of global oil traffic, making its closure one of the most consequential disruptions to energy markets in years.
As per reports, Pakistan's army chief Field Marshal Asim Munir remained in contact through the night with US Vice President JD Vance, special envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araqchi, with talks also being conducted through direct text messages between Witkoff and Araqchi.
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