US reviews latest Iranian proposal to end war stalemate
Analysis of Diplomatic Efforts and Regional Impact
By Steve Holland and Parisa Hafezi
WASHINGTON/DUBAI, April 27 (Reuters) - U.S. President Donald Trump discussed a new Iranian proposal on resolving the war with Tehran with his top national security aides on Monday, as the conflict remains in a stalemate with energy supplies from the region reduced.
Details of Iran's Latest Proposal
Iranian sources earlier on Monday disclosed Tehran's latest proposal, which would set aside discussion of Iran's nuclear program until the war is ended and disputes over shipping from the Gulf are resolved. That is unlikely to satisfy Washington, which says nuclear issues must be dealt with from the outset.
US Response to the Proposal
Secretary of State Marco Rubio said he thought Iran was trying to buy more time. "We can't let them get away with it," he said in an interview with Fox News.
"They’re very good negotiators. They're very experienced negotiators. We have to ensure that any deal that is made, any agreement that is made is one that definitely prevents them from sprinting toward a nuclear weapon at any point," Rubio said.
Ongoing Mediation Efforts
Work to bridge gaps between the U.S. and Iran has not halted, sources from mediator Pakistan said, despite the absence of face-to-face diplomacy after Trump called off a trip by his representatives over the weekend.
Hopes of reviving peace efforts have receded since the U.S. president this weekend announced he had scrapped a visit by his special envoy Steve Witkoff and son-in-law Jared Kushner to Islamabad, the Pakistani capital, where Iranian Foreign Minister Abbas Araqchi shuttled in and out twice during the weekend.
Araqchi also visited Oman and on Monday went to Russia, where he met President Vladimir Putin and received words of support from a longstanding ally.
Economic Consequences and Oil Market Reaction
Oil Prices Rise Again
With the warring sides still seemingly far apart on issues including Iran's nuclear ambitions and access to the crucial Strait of Hormuz, oil prices resumed their upward march on Monday, hitting a two-week high.
Trump met his national security team on Monday morning.
"There was a discussion this morning that I don't want to get ahead of, and you'll hear directly from the president, I'm sure, on this topic very soon," said White House spokeswoman Karoline Leavitt.
Araqchi told reporters in Russia that Trump had requested negotiations because the U.S. has not achieved any of its objectives.
Diplomatic Developments in Islamabad
Islamabad Reopens After Lockdown to Host Talks
Senior Iranian sources, speaking on condition of anonymity, told Reuters the proposal carried by Araqchi to Islamabad over the weekend envisioned talks in stages, with the nuclear issue to be set aside at the start.
Stages of the Proposed Talks
A first step would require ending the U.S.-Israeli war on Iran and providing guarantees that Washington cannot start it up again. Then negotiators would resolve the U.S. blockade and the fate of the Strait of Hormuz, which Iran aims to reopen under its control.
Only then would talks look at other issues, including the longstanding dispute over Iran's nuclear programme, with Iran still seeking some kind of U.S. acknowledgment of its right to enrich uranium for what it says are peaceful purposes.
In a sign that no face-to-face meetings are planned any time soon, streets reopened in Pakistan's capital Islamabad, which had been locked down for a week in anticipation of talks that never took place.
Pakistani officials said negotiations were still taking place remotely, but there were no plans to convene a meeting in person until the sides were close enough to sign a memorandum.
Impact on Global Shipping and Trade
Shipping Snarled by Both Sides
Although a ceasefire has paused the U.S.-Israeli strikes on Iran that began on February 28, no agreement has been reached on terms to end a war that has killed thousands, driven up oil prices, fuelled inflation and darkened the outlook for global economic growth.
Iran has largely blocked all shipping apart from its own from the Gulf through the Strait of Hormuz since the war began.
This month, the United States began blockading Iranian ships.
At least six tankers loaded with Iranian oil have been forced back to Iran by the U.S. blockade in recent days, ship-tracking data showed, underscoring the war's impact on traffic.
Iran's foreign ministry on Monday condemned U.S. seizures of Iran-linked tankers as "outright legalization of piracy and armed robbery on the high seas", in a post on X.com.
Between 125 and 140 ships usually crossed in and out of the strait daily before the war, but only seven have done so in the past day, according to Kpler ship-tracking data and satellite analysis from SynMax, and none of them were carrying oil bound for the global market.
With his approval ratings falling, Trump faces domestic pressure to end the unpopular conflict. Iran's leaders, though weakened militarily, have found leverage with their ability to stop shipping in the strait, which normally carries a fifth of global oil shipments.
Escalation in Lebanon
Fighting Intensifies in Lebanon
Fighting has intensified in Lebanon, where Israeli strikes killed 14 people and wounded 37 in the south on Sunday, according to the health ministry, making it the deadliest day since a U.S.-brokered ceasefire was announced in mid-April.
Iran says it will not hold talks on the wider conflict unless a ceasefire also holds in Lebanon, which Israel invaded in March in pursuit of the Iran-backed group Hezbollah, which fired across the border in support of Tehran.
Israel and Hezbollah blame each other for violating the truce agreed between Israel and the Lebanese government in Washington and extended last week.
(Reporting by Reuters bureaus; Writing by Lincoln Feast, Peter Graff, Keith Weir and Patricia Zengerle; Editing by Raju Gopalakrishnan, Alexandra Hudson, Alison Williams and Nia Williams)
