Trump Rejects Iran’s Peace Proposal as Fractured Leadership Stalls Deal

Key facts

• Trump said Iran’s proposal includes demands he 'can’t agree to'.
• 61% of Americans believe Trump’s use of military force against Iran was a mistake (Washington Post-ABC News-Ipsos poll).
• 14 soldiers killed in Zanjan province defusing unexploded ordnance.
• US cleared over $8.6bn in military sales to Israel, Qatar, Kuwait and UAE.
• US imposed sanctions on China-based Qingdao Haiye Oil Terminal for importing Iranian crude.
• Three Iranian foreign currency exchange firms sanctioned by US Treasury.
• USS Gerald R Ford left Middle East; 20 US ships remain including two carriers.
• Iran’s Foreign Minister Araghchi briefed regional counterparts on peace initiatives.

Trump Rejects Iranian Offer, Citing Unacceptable Demands

President Donald Trump has rejected Iran’s latest peace proposal, saying the terms include conditions he cannot accept. “They’re asking for things that I can’t agree to,” he told reporters at the White House on Friday. Iran’s state-run the plan was delivered via mediators in Pakistan on Thursday night. Trump confirmed that negotiations have continued by phone after he called off his envoys’ trip to Pakistan last week. The president expressed frustration with what he described as Iran’s “fractured” leadership. “It’s a very disjointed leadership,” Trump said. “They all want to make a deal, but they’re all messed up.”

Ceasefire Holds Amid Standoff Over Strait of Hormuz

A shaky three-week ceasefire between the US and Iran appears to be holding, though both sides have traded accusations of violations. While the ceasefire has largely halted fighting inside Iran, a standoff persists over the Strait of Hormuz, through which a fifth of the world’s traded oil and gas passes in peacetime. A US Navy blockade has prevented Iranian tankers from reaching open seas, crippling Iran’s economy. In response, Iran maintains a chokehold on the strait, pressuring the global economy. Washington has warned that ships paying tolls or fees to Iran to transit the strait could face US sanctions, signaling a tougher maritime stance. Trump this week floated a new plan to reopen the critical waterway used by America’s Gulf allies to export oil and gas.

US Military Posture Shifts as Carrier Departs

The USS Gerald R Ford has left the Middle East after participating in operations against Iran, a US official confirmed. Two other aircraft carriers – the USS Abraham Lincoln and USS George HW Bush – remain among 20 US ships still in the region. Mark Cancian of the Center for Strategic and International Studies noted that US military capability “has not changed” as Washington returns to its typical posture of two carrier groups. Trump told top US lawmakers that hostilities in Iran had ended, after facing pressure from Congress to seek authorization for the conflict as it entered its third month.

Sanctions Intensify on Iranian Petroleum and Finance

The US Department of State imposed new measures on entities linked to Iranian petroleum exports, including China-based Qingdao Haiye Oil Terminal, accusing it of importing millions of barrels of sanctioned crude and enabling billions in revenue for Tehran. Beijing rejected the move as unlawful “unilateral sanctions.” The US Treasury Department also slapped new sanctions on three Iranian foreign currency exchange firms to stem the flow of Tehran’s “financial lifelines.” Separately, the State Department cleared more than $8.6bn in military sales to Israel, Qatar, Kuwait and the United Arab Emirates.

Iran’s Leadership Under Strain as War Takes Toll

Supreme Leader Mojtaba Khamenei urged Iranians to wage an economic battle and “disappoint” its enemies, as the war with the US and Israel, combined with years of sanctions, exacts a heavy toll. The Islamic Revolutionary Guard Corps Navy announced it would enforce “new rules” over waters near its coast, aiming to turn them into a “source of security and prosperity” for the region. Fourteen soldiers were killed on Friday during operations to defuse unexploded ordnance in the northwestern Zanjan province, local media reported. The casualties underscore the domestic cost of the conflict. Iran’s Foreign Minister Abbas Araghchi held a flurry of calls on Friday with counterparts from Turkey, Egypt, Qatar, Saudi Arabia, Iraq and Azerbaijan to brief them on Tehran’s latest initiatives to end the war, according to his social media.

Analysts See Mutual Desperation for Face-Saving Exit

Analyst Sultan Barakat observed that both Iran and the US are “really desperate” to end the war in a way that allows them to “save face.” Trump himself outlined the stark choice: “Do we want to go and just blast the hell out of them and finish them forever? Or do we want to try and make a deal?” Despite the impasse, Trump acknowledged that Iran’s leadership has made some progress toward unifying around a resolution. “They’ve made strides, but I’m not sure if they ever get there,” he said, citing “tremendous discord” within Iran’s ruling structure. The path to a negotiated settlement remains uncertain, with both sides entrenched in their positions and the global economy caught in the crossfire.

The bottom line

• Trump rejected Iran’s peace proposal, citing unacceptable demands and fractured Iranian leadership.
• A ceasefire holds but a standoff over the Strait of Hormuz continues, with US threatening sanctions on ships paying Iran.
• 61% of Americans view Trump’s use of force against Iran as a mistake, according to a new poll.
• US imposed sanctions on a Chinese oil terminal and three Iranian currency exchange firms, while clearing $8.6bn in arms sales to Gulf allies and Israel.
• Iran’s supreme leader called for economic resistance, and the IRGC announced new maritime rules.
• Analysts say both sides are desperate for a face-saving end to the conflict, but negotiations remain stalled.