Iran’s Response to U.S. Peace Plan: Ready to Reopen Strait of Hormuz but No Nuclear Concessions

London, May 11, 2026 — Iran has signaled willingness to reopen the Strait of Hormuz as part of a U.S.-brokered ceasefire framework, but its counter-proposal to Washington’s peace initiative includes no commitments on its nuclear program, according to semi-official reports. The Iranian response, relayed through Pakistani mediators, underscores deep divisions over sanctions relief, regional security guarantees, and the future of Tehran’s atomic activities—just as drone strikes and Israeli warnings of an unresolved war threaten to unravel a fragile truce.

The Iranian counter-proposal, published by Tasnim News Agency on Sunday night, demands three key conditions before negotiations can proceed: the immediate lifting of U.S. Sanctions, the end of the American naval blockade of the Strait of Hormuz following an initial agreement, and a guaranteed cessation of hostilities with assurances against future attacks. These terms contrast sharply with the U.S. Proposal—a one-page, 14-point memorandum of understanding—reportedly presented last week, which would have reopened the strait while setting a framework for talks on Iran’s nuclear program.

U.S. President Donald Trump has dismissed Iran’s response as “totally unacceptable,” escalating tensions as the ceasefire, now a month old, shows signs of fraying. In a statement released Monday, Trump warned that further military action could be taken if Iran attempts to reconstitute its nuclear capabilities. His remarks came after a meeting with Israeli Prime Minister Benjamin Netanyahu at Mar-a-Lago, where Trump reiterated that Iran’s nuclear infrastructure had been “completely and fully obliterated” by U.S. Strikes in June 2025. However, Israeli officials have expressed concerns about potential Iranian efforts to rebuild long-range missile stockpiles.

Key Demands: Sanctions Relief and Strait of Hormuz

Iran’s counter-proposal hinges on three non-negotiables:

• Lifting of U.S. Sanctions: Tehran insists sanctions must be fully removed before any nuclear discussions begin, framing them as a precondition for trust.
• End of the Strait of Hormuz blockade: The Iranian text demands the immediate cessation of U.S. Naval operations in the strait, a critical shipping route for global oil supplies, following the signing of an initial understanding.
• Guaranteed cessation of hostilities: Iran seeks ironclad assurances that no further attacks—whether by Israel, the U.S., or regional allies—will target its territory or forces.

The U.S. Proposal, by contrast, would have required Iran to impose a 20-year moratorium on uranium enrichment, transfer its stockpile of highly enriched uranium (HEU) overseas (potentially to the U.S.), and dismantle key nuclear facilities. These demands align with Israel’s long-standing push for a “zero-enrichment” policy, but Iran has repeatedly rejected such terms as non-starters.

Trump’s Warning and Netanyahu’s Stance

In a press conference following his meeting with Netanyahu, Trump emphasized that any Iranian attempt to rebuild its nuclear program would trigger a U.S. Response. “If it’s confirmed, they know the consequences, and the consequences will be very powerful,” Trump said, adding that Iran’s alleged efforts to “build up again” could not be tolerated. His remarks followed Israeli reports of suspected Iranian activity outside previously targeted nuclear sites.

“Now I hear that Iran is trying to build up again. And if they are, we’re going to have to knock them down. We’ll knock them down. We’ll knock the hell out of them.”

Netanyahu, who has repeatedly warned that the war with Hamas is “not over,” echoed Trump’s hardline stance. Israeli officials have privately expressed concerns that Iran may be diversifying its nuclear and missile programs to evade U.S. Strikes. Meanwhile, the Gaza ceasefire deal—already delayed—faces further obstacles as the second phase, involving the establishment of an international governing body for the Palestinian territory, remains stalled.

Regional Escalation: Drone Strikes and Ceasefire Strains

As diplomatic tensions rise, reports of drone strikes in Gulf nations and Israel’s warnings of an unresolved conflict have raised fears of a broader regional escalation. The Strait of Hormuz, a chokepoint for 20% of the world’s oil supply, remains a flashpoint: any disruption could trigger a global energy crisis. Iran’s demand to end the U.S. Naval presence in the strait reflects Tehran’s strategic priority to secure unfettered access for its oil exports, a key lever in any negotiations.

Pakistan, which mediated the Iranian response, has not yet confirmed whether the U.S. Will engage with Tehran’s terms. Analysts suggest the counter-proposal may be a tactical move to test Washington’s flexibility, particularly as Trump prepares for a high-stakes visit to China later this month. The trip, expected to focus on economic and security cooperation, could be overshadowed by Middle East tensions.

What Happens Next?

The next critical checkpoint is the second phase of the Israel-Hamas ceasefire deal, which officials say could be announced “shortly.” However, without progress on Iran’s demands—or a U.S. Counteroffer—the ceasefire’s future remains uncertain. Key stakeholders include:

• Iran: Will it accept a phased approach to sanctions relief or insist on full removal upfront?
• United States: Will Trump’s administration prioritize military deterrence or seek a diplomatic compromise?
• Israel: Will Netanyahu’s government accept any nuclear concessions from Iran, or will it push for total dismantlement?
• Pakistan: Can it bridge the gap between Tehran and Washington?

For updates on the ceasefire negotiations, monitor official statements from the U.S. Department of State and the Israeli Ministry of Foreign Affairs. Iran’s Foreign Ministry has not yet issued a formal response to the U.S. Proposal, but Tasnim News continues to publish developments.

Key Takeaways

• Iran’s counter-proposal demands sanctions relief, Strait of Hormuz reopening, and hostilities guarantees—but no nuclear concessions.
• Trump and Netanyahu warn of military action if Iran rebuilds its nuclear program, despite Iran’s claims of no enrichment activity.
• Ceasefire strains are worsening, with drone strikes and Israeli warnings signaling an unresolved conflict.
• Pakistan’s role as mediator remains pivotal, but no timeline has been set for further talks.
• Global energy risks loom as the Strait of Hormuz’s status becomes a bargaining chip.

As the diplomatic deadlock deepens, the question remains: Can any of the core demands be compromised, or is this a showdown with no off-ramp?

What do you think? Should the U.S. Prioritize sanctions relief to unlock nuclear talks, or is Iran’s stance a non-starter? Share your views in the comments below.