The US ceasefire proposal reportedly included the offer of sanctions relief for Iran, a significant concession from an administration that had previously used economic pressure as its primary tool against Tehran. But Iranian officials made clear on Wednesday that lifting sanctions was not sufficient to bring them to the table. Tehran’s five-point counter-proposal reflected a much more expansive set of demands, including war reparations and retained control over the Strait of Hormuz — conditions that went far beyond sanctions relief.
The gap between the two sides’ negotiating positions illustrated how much the war had shifted Iran’s expectations. Before the conflict began, sanctions relief had been the central prize Tehran sought in negotiations. The war had raised the stakes dramatically; Iran now sought acknowledgement of the damage done, guarantees against future attacks, and strategic concessions that previous negotiations had never addressed. The transformation reflected both grievance and calculated positioning.
The US plan, according to reporting from intermediaries, also included conditions related to Iran’s nuclear programme and missile capabilities. Iran had previously been willing to discuss nuclear limitations in exchange for comprehensive sanctions relief, but the terms being offered now were seen by Tehran as attempting to strip away its defensive capabilities in exchange for economic concessions that could be revoked at any time by a future administration. Iran’s historical experience gave it ample reason for scepticism.
Trump’s administration maintained publicly that a deal was achievable within its stated timeline. Karoline Leavitt said discussions were “productive” and that Iran had signalled genuine interest in a resolution. The White House pointed to the exchange of proposals as evidence that both sides were engaging, even if the positions remained far apart. Multiple intermediaries shared this cautious optimism, with Pakistan and Egypt suggesting direct talks could begin within days.
The broader economic context gave additional urgency to the search for a deal. The Strait of Hormuz blockade had sent global oil prices surging to crisis levels, affecting economies around the world. With Trump’s domestic approval rating at a record low of 36% and most Americans saying the war had gone too far, the political pressure to close a deal — even an imperfect one — was enormous. Whether the gap between sanctions relief and Iran’s full set of demands could be bridged remained the central question.