Pakistan Conveys Iran’s New Peace Proposal to the US Amid Finance Tensions
Diplomatic Efforts and Financial Negotiations in the Middle East Conflict
By Parisa Hafezi and Ariba Shahid
Background of the Peace Proposal
DUBAI/KARACHI, May 18 (Reuters) - Iran sent a new peace proposal to the United States with terms that appeared similar to offers Washington has previously rejected, although a senior Iranian official told Reuters on Monday that the U.S. had softened positions on some issues.
A Pakistani source confirmed that Islamabad, which has conveyed messages between the sides in the war in the Middle East since hosting the only round of peace talks last month, had shared the latest proposal with Washington. But the source suggested progress had been difficult.
Challenges in Mediation
The sides "keep changing their goalposts," the Pakistani source said, adding: "We don't have much time."
Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed that Tehran's views had been "conveyed to the American side through Pakistan" but gave no details. Washington did not immediately comment.
Details of the Iranian Proposal
The Iranian proposal, as described by the senior Iranian source, appeared similar in many respects to Iran's previous offer, which U.S. President Donald Trump rejected last week as "garbage".
Key Points of the Proposal
It would focus first on securing an end to the war, reopening the Strait of Hormuz - a major oil supply route that Iran has effectively blockaded - and lifting maritime sanctions.
Contentious issues around Iran's nuclear programme and uranium enrichment would be deferred to later rounds of talks, the source said.
Financial Concessions and Nuclear Oversight
However, in an apparent softening of Washington's stance, the senior Iranian source said the United States had agreed to release a quarter of Iran's frozen funds - totalling tens of billions of dollars - held in foreign banks. Iran wants all the assets released.
The Iranian source also said Washington had shown more flexibility in agreeing to let Iran continue some peaceful nuclear activity under supervision of the International Atomic Energy Agency.
Iran's Tasnim news agency separately quoted an unidentified source as saying the U.S. had agreed to waive oil sanctions on Iran while negotiations were under way.
Iranian officials did not immediately comment on Tasnim's report, which a U.S. official, who declined to be named, said was false.
Ceasefire Status and Ongoing Tensions
Fragile Ceasefire
A fragile ceasefire is in place after six weeks of war that followed U.S.-Israeli airstrikes on Iran. But talks mediated by Pakistan have stalled and Trump has said the ceasefire is "on life support".
Washington has previously demanded Tehran dismantle its nuclear program and reopen the Strait of Hormuz, which normally carries one-fifth of the world's seaborne oil and liquefied natural gas supply.
Iran’s Demands and U.S. Response
Iran has been demanding compensation for war damage, an end to a U.S. blockade of Iranian ports and a halt to fighting on all fronts, including in Lebanon, where Israel is battling the Iran-backed Hezbollah militia.
Trump said in a post on Truth Social at the weekend that "the Clock is Ticking" for Iran, adding that "they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!"
Trump is expected to meet top national security advisers on Tuesday to discuss options for resuming military action, Axios reported.
Iran’s Preparedness for Future Scenarios
Baghaei said Tehran was prepared for all scenarios.
"As for their threats, rest assured that we are fully aware of how to respond appropriately to even the smallest mistake from the opposing side," he told a televised weekly press conference.
(Reporting by Reuters bureauxWriting by Timothy HeritageEditing by Kevin Liffey, Peter Graff and Deepa Babington)
