Iran says peace proposal demands reparations for war damage, US troop withdrawal

Iran's latest peace proposal to the United States includes reparations for war damage, the withdrawal of US forces from areas near Iran, and an end to hostilities on all fronts including Lebanon, state media reported Tuesday.

Deputy Foreign Minister Kazem Gharibabadi outlined Tehran's terms in comments carried by the IRNA news agency, marking Iran's first public remarks on the proposal. The terms appeared little changed from Iran's previous offer, which Trump rejected last week as "garbage."

What does Iran's peace proposal to the US include?

Iran's peace proposal calls for reparations for destruction caused by the US-Israeli war, the exit of US forces from areas close to Iran, and a ceasefire on all fronts including Lebanon.

Tehran is also seeking the lifting of sanctions, the release of frozen funds held in foreign banks, and an end to the US naval blockade on the country. Pakistan, which hosted the only round of direct peace talks last month, confirmed it had conveyed the proposal to Washington.

What did Trump say about Iran's new peace proposal?

Trump said Monday he had paused a planned resumption of attacks on Iran after receiving the new proposal, and that there was now a "very good chance" of reaching a deal limiting Iran's nuclear program.

He told reporters the United States would be satisfied with an agreement that prevented Tehran from obtaining a nuclear weapon. "If we can do that without bombing the hell out of them, I would be very happy," Trump said.

Trump also said the leaders of Qatar, Saudi Arabia and the United Arab Emirates had asked him to hold off on military action, saying a deal would be "very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond."

He has previously expressed hope that a deal was close, while threatening heavy strikes if Iran did not comply. Reuters could not determine whether preparations had been made for strikes that would mark a renewal of the war Trump started in late February.

Are the US and Iran making progress in peace negotiations?

Neither side has publicly confirmed any concessions in negotiations that have been stalled for a month, though a senior Iranian official suggested Washington may be softening some demands.

The source said the US had agreed to release a quarter of Iran's frozen funds, totaling tens of billions of dollars, held in foreign banks, though Iran is seeking the full amount. Washington had also shown more flexibility in allowing Iran to continue some peaceful nuclear activity under supervision of the International Atomic Energy Agency, the source said.

A US official denied a report by Iran's Tasnim news agency that Washington had agreed to waive oil sanctions while negotiations were underway. Pakistan's role as intermediary has continued, with a Pakistani source confirming the proposal had been shared with Washington. The same source cautioned that the sides "keep changing their goalposts" and added: "We don't have much time."

What is the current state of the Iran ceasefire?

The ceasefire agreed in early April has mostly held, though drones have lately been launched from Iraq towards Gulf countries including Saudi Arabia and Kuwait, apparently by Iran and its allies.

The US-Israeli bombing campaign killed thousands of people in Iran before it was suspended, while Israel has killed thousands more and displaced hundreds of thousands from their homes in Lebanon. Iranian strikes on Israel and neighboring Gulf states have killed dozens of people.

Has the war achieved its stated objectives against Iran?

Trump and Israeli Prime Minister Benjamin Netanyahu said they launched the war to curb Iran's support for regional militias, dismantle its nuclear program, destroy its missile capabilities, and create conditions for Iranians to topple their rulers.

The war has not deprived Iran of its stockpile of near-weapons-grade enriched uranium or its ability to threaten neighbors with missiles, drones and proxy militias. Iran's clerical leadership, which faced a mass uprising at the start of the year, withstood the campaign with no sign of organized opposition.