Iran says peace proposal seeks war reparations and US troop withdrawal

Mr Trump said yesterday he had put a planned new round of attacks on Iran on hold after Tehran sent Washington a fresh peace proposal, adding that there was now a "very good chance" of securing an agreement...

World Abdiwahab Ahmed May 19, 2026 4 min read
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Iran has set out a sweeping proposal to the United States that would halt hostilities across the region, demand a US military pullback from areas near Iran and seek compensation for damage caused during the US-Israeli war, according to Iranian state media.

Offering Tehran’s first public account of the plan, Deputy Foreign Minister Kazem Gharibabadi said the package also calls for sanctions relief, the unfreezing of Iranian assets and an end to what he described as the US marine blockade, IRNA news agency reported.

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As outlined in Iranian reports, the terms appeared largely unchanged from Tehran’s earlier offer, which US President Donald Trump dismissed last week as “garbage”.

Mr Trump said yesterday he had put a planned new round of attacks on Iran on hold after Tehran sent Washington a fresh peace proposal, adding that there was now a “very good chance” of securing an agreement to limit Iran’s nuclear programme.

With pressure mounting to strike a deal that would reopen the Strait of Hormuz – a vital corridor for global oil shipments and other commodities – Mr Trump has repeatedly voiced optimism that an end to the conflict was within reach, while also warning Tehran of heavy strikes if no agreement emerged.

In a social media post, Mr Trump said the leaders of Qatar, Saudi Arabia and the United Arab Emirates had urged him to delay the attack because “a deal will be made, which will be very acceptable to the United States of America, as well as all countries in the Middle East, and beyond”.

Ships moored in the Strait of Hormuz

Speaking to reporters yesterday, he said Washington’s bottom line was an agreement that would stop Tehran from acquiring a nuclear weapon.

“There seems to be a very good chance that they can work something out. If we ‌can do that without bombing the hell out of them, I would be very happy,” Mr Trump told reporters.

A Pakistani source confirmed that Islamabad, which has passed messages between the two sides since hosting the only round of peace talks last month, had delivered the Iranian proposal to Washington.

The ⁠sides “keep changing their goalposts,” the Pakistani source said, adding: “We don’t have much time.”

Mixed signals

While neither side has publicly revealed any concessions in talks that have been stalled for a ‌month, a senior Iranian official indicated yesterday that Washington may be easing some of its demands.

The source said the US had agreed ⁠to release a quarter ‌of Iran’s frozen funds – worth tens of billions of dollars – held in foreign banks. Iran is pressing for the full amount to be freed.

The same source said Washington had also shown greater flexibility on allowing Iran to continue limited peaceful nuclear activity under the supervision of the International Atomic Energy Agency.

Women wave Iran’s national flags during an anti-US and Israel protest at Hafte Tir Square in Tehran

The US has not confirmed that it has agreed to any terms in the negotiations.

A US official, speaking on condition of anonymity, denied a report by Iran’s Tasnim news agency that ⁠Washington had agreed to suspend oil sanctions on Iran while negotiations continued.

The US-Israeli bombing campaign killed thousands of people in Iran before it was halted under a ceasefire in early April.

Watch: Trump signals possible deal over Iran nuclear programme

Israel has ⁠killed thousands more and displaced hundreds of thousands in Lebanon, which it invaded while pursuing the Iran-backed Hezbollah militia. Iranian strikes on Israel and neighbouring Gulf states have killed dozens of people.

The ceasefire involving Iran has largely held, though drones have recently been launched from Iraq towards Gulf countries, including Saudi Arabia and Kuwait, apparently by Iran and its allies.

Mr Trump and Israeli Prime Minister Benjamin Netanyahu said they launched the war to curb Iran’s support for regional militias, dismantle its nuclear programme, destroy its missile capabilities and create conditions for Iranians to overthrow their rulers.

But the war has not stripped Iran of its stockpile of near-weapons-grade enriched uranium or its ability to threaten neighbouring states with missiles, drones and proxy militias.

The Islamic Republic’s clerical ‌leadership, which had been confronted by a mass uprising at the start of the year, survived the superpower assault without any visible sign of organised opposition.

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