Iran Outlines New Peace Proposal to US, Demands Reparations and Troop Withdrawal

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Iran has presented a revised peace proposal to the United States that includes sweeping political, military, and economic demands, according to comments by Iran’s Deputy Foreign Minister Kazem Gharibabadi and state media reports cited by Reuters.

The proposal comes amid ongoing, fragile ceasefire conditions following months of conflict involving US and Israeli strikes on Iranian targets.

Key Terms of Iran’s Proposal

According to Iranian officials, the latest proposal calls for:

  • An end to hostilities across all fronts, including regional conflicts involving Lebanon
  • Withdrawal of US forces from areas near Iran
  • Lifting of all sanctions imposed on Tehran
  • Release of frozen Iranian financial assets abroad
  • An end to the US maritime blockade affecting Iranian-linked shipping
  • Payment of reparations for damage caused during the war

Iranian officials described these conditions as part of a broader framework aimed at restoring what they call “full sovereignty and economic normalisation.”

US Response and Negotiation Dynamics

The Iranian proposal appears to closely mirror earlier offers made by Tehran, which US President Donald Trump previously dismissed as unacceptable. However, recent reports suggest Washington may be showing limited flexibility on certain issues, particularly regarding Iran’s frozen funds and nuclear-related restrictions.

Sources cited by Reuters indicated that the United States has considered releasing approximately one-quarter of Iran’s frozen assets held in foreign banks, although Tehran is reportedly demanding full access to the funds.

There are also indications that the US may be open to allowing limited Iranian nuclear activity under the supervision of the International Atomic Energy Agency (IAEA), though no formal agreement has been confirmed.

Iran Announces New Authority to Manage Strait of Hormuz Amid Ongoing Maritime Tensions

Role of Regional Diplomacy

A Pakistani diplomatic source confirmed that Islamabad has been actively involved in transmitting messages between Washington and Tehran, including sharing Iran’s latest proposal with the US side. Pakistan has been acting as a communication channel since hosting a round of talks last month aimed at reducing tensions.

Several Gulf states, including Qatar, Saudi Arabia, and the United Arab Emirates, have reportedly urged Washington to avoid further escalation, citing hopes for a negotiated settlement.

Strategic Context

The negotiations are taking place against the backdrop of heightened tensions in the Middle East, including disruption to maritime trade routes such as the Strait of Hormuz and broader instability across the region.

While both sides continue to publicly maintain firm positions, diplomatic activity suggests that backchannel efforts remain active, even as key differences persist over sanctions relief, military presence, and Iran’s nuclear programme.

For now, no breakthrough has been announced, and the talks remain at a sensitive and uncertain stage.

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