Diplomacy and threats collide as US, Iran receive peace proposal

Iran has rejected reopening the Strait of Hormuz as part of a proposed ceasefire framework with the United States, even as diplomatic efforts to end the ongoing conflict gathered pace amid continued hostilities.

A Reuters source familiar with the discussions said the proposed peace plan envisages a two-tier approach — an immediate ceasefire followed by a comprehensive agreement to be finalised within 15 to 20 days.

The source said Pakistan’s army chief Asim Munir had been in contact “all night” with US Vice President JD Vance, US special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi as part of efforts to advance the proposal.

Separately, Axios reported that the US, Iran and regional mediators were discussing a possible 45-day ceasefire as part of a broader deal that could eventually lead to a permanent end to the war.

Iran rejects key condition

A senior Iranian official said Tehran would not reopen the Strait — a critical route for nearly a fifth of global oil and gas supplies — as part of any temporary ceasefire arrangement.

The official added that Iran would not accept externally imposed deadlines and accused Washington of lacking seriousness about a permanent ceasefire.

Iran had earlier effectively shut the waterway in response to US-Israeli strikes, disrupting global energy flows and raising oil prices.

US President Donald Trump warned that Iran must agree to a deal by Tuesday evening or face intensified attacks.

In a post on his Truth Social platform, Trump threatened further strikes on Iran’s energy and transport infrastructure if Tehran failed to comply.

He later specified a deadline of “Tuesday, 8:00 PM Eastern Time (Wednesday 0000 GMT)”.

Continued escalation

Fresh aerial strikes were reported across the region on Monday, more than five weeks after the US and Israel launched coordinated attacks on Iran.

Iran has retaliated with missile and drone strikes targeting Israel, US military bases and energy infrastructure across the Gulf region.

Recent Iranian strikes on petrochemical facilities and an Israeli-linked vessel near Kuwait, Bahrain and the United Arab Emirates highlighted Tehran’s continued operational capability despite US claims of degrading its military strength.

Anwar Gargash said any settlement must guarantee free passage through the Strait of Hormuz and warned that failure to address Iran’s nuclear and missile programmes could lead to a “more dangerous” region.

Casualties and fallout

The conflict has caused heavy casualties on multiple fronts. A US-based rights group, HRANA, said around 3,540 people have been killed in Iran, including at least 244 children.

In Israel, two people were killed after an Iranian missile struck a residential building in Haifa.

The violence has also spilled into Lebanon, where Israeli operations against Iran-backed Hezbollah have intensified. Lebanese authorities say at least 1,461 people, including 124 children, have been killed.

Wider impact

The war, which began on 28 February following US-Israeli strikes on Iran, has triggered a sharp rise in global oil prices and disrupted shipping routes.

Despite diplomatic efforts, there are no immediate signs of a breakthrough, with both sides maintaining hard positions on key issues, including control of the Strait of Hormuz and conditions for a ceasefire. Iran has rejected reopening the Strait of Hormuz as part of a proposed ceasefire framework with the United States, even as diplomatic efforts to end the ongoing conflict gathered pace amid continued hostilities.