Iran reviews US proposal but rules out talks as global markets fluctuate

The Iranian government has confirmed that it is reviewing a proposal from the United States aimed at ending the war in the Gulf region, but has made it clear that it has no intention of entering direct negotiations with Washington, even as tensions across the Middle East continue to escalate.

Iran’s Foreign Minister, Abbas Araghchi, said in remarks carried by state media on Wednesday that while messages had been exchanged through intermediaries, this should not be interpreted as the start of formal negotiations. He added that the US proposal had already been forwarded to Iran’s top leadership and that an official position would be announced if necessary.

The proposal, put forward by Donald Trump and reportedly consisting of 15 points, was delivered via Pakistan. It includes key demands such as Iran halting the accumulation of highly enriched uranium, ending its enrichment activities, scaling back its missile programme, and ceasing support for regional allies.

The White House has declined to provide further details, but has signalled that it is prepared to escalate military action if Iran refuses to accept the conditions.

Israeli security officials have expressed scepticism that Iran will agree to the proposal, while also voicing concern that the United States could soften some of its demands. Israel has indicated that any agreement must still allow it to carry out pre-emptive strikes if necessary.

In economic terms, global markets have shown signs of partial recovery, while oil prices have edged lower following reports of the US proposal, reflecting investor hopes for a potential de-escalation that could ease energy supply risks and inflationary pressures.

At the same time, the US Department of Defense is preparing to deploy thousands of paratroopers to the Gulf region to expand military options available to the president. These forces are expected to reinforce Marine units already en route, with initial deployments likely to arrive by the end of this month.

According to Iranian security sources, Tehran could open a new front near the Red Sea if it comes under attack. In particular, the Bab al-Mandeb Strait — a strategic shipping route between Yemen and Djibouti — could become a focal point, posing a threat to international maritime traffic.

Iran’s parliamentary speaker has also warned that the country would target neighbouring states that cooperate with what it described as “enemy forces” in any occupation of its territory. Previously, Iran had already moved to close the Strait of Hormuz, a vital route through which roughly one-fifth of the world’s oil and liquefied natural gas supplies pass.

The United Nations has warned of the risk of a wider regional war. Secretary-General António Guterres said the world was facing a dangerous situation and urged all sides to reduce tensions and return to diplomatic solutions.

Despite ongoing political efforts, fighting on the ground remains intense. Air strikes against Iran have continued, while Tehran has responded with drone and missile attacks targeting Israel and US allies in the region, including Kuwait, Jordan and Bahrain.

Iran has rejected the US ceasefire proposal and instead outlined five conditions for ending the war, according to state broadcaster Press TV:

Iran’s five conditions:

1. A complete halt to what it describes as “aggression” and targeted assassinations
2. The establishment of concrete guarantees that war will not be resumed against Iran
3. Full compensation and clearly defined reparations for war damages
4. An end to fighting across all fronts and among all proxy groups in the region
5. International recognition and guarantees of Iran’s sovereignty over the Strait of Hormuz

By contrast, the US proposal — as outlined by Iranian media — contains 15 key points, including:

Summary of US conditions:

1. The Strait of Hormuz must be reopened and maintained as a free navigation zone for all vessels
2. Iran’s missile programme would be limited in both number and range
3. Missiles would be restricted to defensive use only
4. Iran’s nuclear capabilities and infrastructure would be dismantled
5. Iran would renounce the possession of nuclear weapons
6. No uranium enrichment would be allowed on Iranian territory
7. Highly enriched uranium stockpiles would be handed over to the International Atomic Energy Agency within an agreed timeframe
8. Nuclear facilities at Fordow, Isfahan and Natanz would be decommissioned and dismantled
9. Iran would commit to full nuclear transparency and accept independent inspections
10. Iran would cease all support for proxy groups
11. Financial backing for such groups would be terminated
12. Iran would formally declare an end to the war
13. Sanctions imposed on Iran would be lifted
14. The United States would support Iran’s civilian nuclear energy development at the Bushehr nuclear power plant
15. Mechanisms allowing sanctions to be reimposed would be removed

Despite these diplomatic exchanges, the gap between the two sides remains wide. The conflict continues to pose significant risks not only to regional stability but also to global energy markets and broader economic conditions.