Iran has reportedly rejected a two-stage proposal from the United States and regional mediators offering a 45-day ceasefire in exchange for the reopening of the Strait of Hormuz.
According to a report by the Wall Street Journal, Tehran has instead submitted a counter-proposal demanding a permanent end to the war.
In the proposal, Iran is asking for guarantees of a comprehensive ceasefire, the lifting of economic sanctions, compensation for damage caused by the conflict, and the restructuring of the administration of the strategic waterway.
Additional demands include an end to all conflicts in the region and guarantees that Israel will not target Hezbollah in the future.
Donald Trump described Iran’s counter-proposal as insufficient, but acknowledged that it was an initial step in the negotiations.
At the same time, the mediators warned that the 45-day ceasefire period risks being used by the US as a space to organize further military action.
Tensions continued to rise when Iran officially rejected the proposal. Shortly thereafter, Trump issued a stark warning that a large-scale military strike on Iran's key infrastructure, including energy and economic facilities, would be possible.
Trump also insisted that the deadline would not be extended. He signaled that military action could occur in the near future, stating that the entirety of Iran could be defeated in a short period of time.
This development increases global geopolitical risks, particularly for energy markets, given the importance of the Strait of Hormuz as a major route for world oil exports.
