Investing.com– Iran has rejected a U.S. proposal to end the war and outlined its conditions for any ceasefire, state broadcaster Press TV reported on Wednesday,.
“Iran will end the war when it decides to do so and when its own conditions are met,” the senior government official was quoted as saying. “No negotiations will be held prior to that.”
U.S. President Donald Trump previously said that Washington is engaged in discussions with Iran over a possible ceasefire, but Tehran pushed back on those claims and signaled it is not ready to negotiate.
The U.S. has sent Iran a 15-point plan centered on longstanding demands, according to Bloomberg News. However, Iranian officials have suggested Washington is effectively “negotiating with itself” to escape what they described as a strategic setback.
Iran’s Foreign Ministry spokesman Esmail Baghaei said Tehran has had “a very disastrous experience” with U.S. diplomacy and described Washington’s actions as a betrayal, while parliamentary speaker Mohammad-Bagher Ghalibaf warned that Iran is “closely monitoring all U.S. movements in the region” and cautioned the U.S. not to test its “resolve to defend our land.”
Speaking to India Today, Baghaei said Iran was bombed twice over the past nine months while engaged in talks with the U.S., referring to attacks last June and the conflict that began on Feb. 28.
“The world is concerned about the price of oil, the price of groceries, but we are concerned about the lives of our citizens,” he said.
According to the Fars news agency, Iran has said that a truce and talks are not viable in the current conditions. But the outlet noted that Tehran would like to see a full end to the conflict, rather than just a ceasefire.
Elsewhere, Rafael Grossi, head of the International Atomic Energy Agency, said talks aimed at ending the war could begin in Pakistan as soon as this weekend.
“The longer-term implications for the global energy supply are casting an increasingly long shadow over global economic and inflation forecasts,” Elena Statelov, Erste Group analyst, said Wednesday.
High bar for a quick resolution
The Wall Street Journal previously reported that Iranian representatives have indicated a high bar for re-entering negotiations, even as Trump has described recent talks as “productive.” Iran’s military also rejected the notion of progress outright, with armed forces spokesman Ebrahim Zolfaghari saying that “someone like us will never get along with someone like you. Not now, not ever,” dismissing Trump’s remarks about ongoing discussions.
The report also mentioned indirect communication between the U.S. and Iran is taking place through intermediaries, but the two sides remain far apart. Iranian demands include the closure of all U.S. bases in the Gulf, reparations for attacks, lifting all sanctions, and allowing Iran to retain its missile program without restrictions.
Tehran has also called for a new order in the Strait of Hormuz that would allow it to collect transit fees, as well as guarantees that the war would not restart and an end to Israeli strikes on Hezbollah. A U.S. official described the demands as “ridiculous and unrealistic,” according to the WSJ.
Mediators from Turkey, Egypt and Pakistan are reportedly pushing for talks, while Pakistan has formally offered to broker negotiations. Baghaei confirmed the reports, saying Tehran has “responded to those messages” from mediators.
In the meantime, Gulf Arab states appear to be growing increasingly uneasy about the prospect of a deal. Multiple reports noted that Saudi Arabia and the United Arab Emirates are lobbying Trump to continue military pressure until Iran is significantly weakened, warning that a ceasefire could leave the region facing a still-potent adversary. Saudi officials are also uncomfortable with the reported U.S. proposal, which would trade sanctions relief for broad concessions from Tehran.
While diplomatic efforts are struggling to gain any meaningful traction, military tensions remain elevated. The Pentagon is planning to deploy around 3,000 troops from the 82nd Airborne Division to the Middle East, though officials cautioned no decision has been made on deploying ground forces inside Iran.
Gulf countries reported continued attacks, with Saudi Arabia intercepting drones and a ballistic missile, Kuwait responding to “hostile missile and drone threats,” and Bahrain urging residents to seek shelter as air defense systems engaged incoming targets. All these developments are likely to weigh on risk assets, barring a major breakthrough.
“Investors remain skewed towards the de-escalation scenario, with recent newsflow suggesting uncertainty may have peaked,” Barclays strategist Emmanuel Cau wrote in a client note.
(Scott Kanowsky contributed reporting.)