Iran puts forward peace proposal; Trump flatly rejects: 'Completely unacceptable'

U.S. President Donald Trump has rejected Iran's response to his latest peace proposal aimed at ending a war that has upended the global economy. Tehran sent its counterproposal to Washington via Pakistani intermediaries.

In a post on Truth Social late Sunday, Trump accused Iran of 'playing games' with the U.S. and the rest of the world over 47 years. He wrote: 'They won't be laughing much longer!'

Two hours later, Trump added: 'I just read the response from the so-called Representatives of Iran. I didn't like it – COMPLETELY UNACCEPTABLE!'

More than a month after a temporary cease-fire began on April 8, talks between the U.S. and Iran remain deadlocked. Tehran wants a permanent end to the war, while Trump insists Iran must reopen the Strait of Hormuz – which carries one-fifth of the world's crude oil and natural gas in peacetime – and make the nuclear issue a 'red line'.

According to reports from Iranian media, Tehran demands an end to hostilities across all fronts, including Lebanon, where Israel has conducted airstrikes and ground incursions. Iran wants the first phase of negotiations to focus on ending hostilities and ensuring 'maritime security' in the Gulf and the Strait of Hormuz, before moving to broader issues such as the nuclear program and support for proxy groups in the Middle East.

An unnamed Iranian source said: 'Our response focused on ending the war across the region, especially in Lebanon, and resolving differences with Washington. It was realistic and positive. The decision now rests with Washington.'

On the nuclear issue, sources said Iran proposed diluting part of its highly enriched uranium stockpile (estimated at 440 kilograms at 60% purity) and transferring the remainder to a third country. Iran also offered to temporarily suspend enrichment, but for a shorter period than the 20-year ban the U.S. demands, and refused to dismantle its nuclear facilities. The U.S. currently insists on reducing enrichment to 0%.

Iran's Tasnim news agency reported that Tehran's proposals focus on demanding the U.S. end oil sanctions, release frozen overseas assets, and lift the naval blockade on Iranian ports.

Iranian Foreign Ministry Spokesman Esmaeil Baghaei said the U.S. continues to make 'unreasonable demands' and called Iran's response 'not excessive'. He stressed that demanding an end to the war, lifting the blockade, and unfreezing assets are Tehran's 'legitimate demands'.

A source familiar with the matter told Tasnim: 'No one in Iran wrote the plan to please Trump. If Trump is not happy, that's actually better. Trump simply doesn't like reality; that's why he keeps losing to Iran.'

In a previous 14-point peace proposal, the U.S. demanded Iran agree not to develop nuclear weapons, cease enrichment for at least 12 years, and hand over its estimated 440-kilogram uranium stockpile. In return, the U.S. would gradually lift sanctions, release billions of dollars in frozen assets, and withdraw the naval blockade. Both sides would reopen the Strait of Hormuz within 30 days of signing.

Al Jazeera correspondent Rosiland Jordan noted: 'Every issue Iran raised touches on points the U.S. is unwilling to concede, especially Iran's ambition to become a nuclear power and its capacity to attack neighboring states, particularly Israel.'

Political scientist Chris Featherstone of York University said Iran has maintained the conditions for a long-term peace deal, and Trump 'seems to have backed himself into a corner'. He said: 'Without concessions from either side, these talks appear to have no clear way out.'

Ali Vaez, director of the Iran Project at the International Crisis Group, commented: 'No amount of economic or military pressure can force Iran to submit to maximalist U.S. demands. Trump is left with two bad options: escalate a war he cannot win, or accept a compromise he cannot sell.'

Former National Security Advisor Mark Pfeifle said Trump is unlikely to resume full-scale war; instead, he will ramp up economic pressure through blockades and limited military action around the Strait of Hormuz, targeting fast boats, drone launchers, and Iranian missiles. However, he warned: 'There aren't many tools left in the toolbox.'