Topline
Iran outlined its latest peace proposal on Tuesday, including demands for ending U.S. sanctions and a naval blockade, several hours after President Donald Trump claimed he called off a planned military strike to allow for ongoing “serious negotiations.”
Key Facts
Iranian state media outlet IRNA quoted Iran’s Deputy Foreign Minister Kazem Gharibabadi, who said the peace proposal includes “the country’s insistence on its right to uranium enrichment and peaceful nuclear activities.”
Iran’s proposal calls for an end to the conflict on all fronts, including Lebanon, the lifting of the U.S. naval blockade, and the lifting of “all unilateral sanctions.”
The demands also call for the release of frozen Iranian funds and “compensation…for damage” caused during the war.
It is unclear if the proposal outlined by Gharibabadi has been forwarded to the U.S., but Trump last week dismissed an earlier proposal calling it “totally unacceptable” and a “piece of garbage.”
What Do We Know About Trump Calling Off Strikes?
In a post on Truth Social on Monday afternoon, the president announced he had decided to hold off on a planned military strike on Iran that was scheduled for Tuesday. Trump said he acted on the request of the leaders of Qatar, Saudi Arabia, and the United Arab Emirates and claimed: “Serious negotiations are now taking place, and that, in their opinion…a Deal will be made.” The president then reiterated that this deal will ensure “NO NUCLEAR WEAPONS FOR IRAN!” Trump’s post didn’t specifically mention allowing Iran to continue nuclear enrichment, but he has previously spoken about removing the “nuclear dust” (enriched uranium) from the country. The president, however, warned that the military has been ordered to stay prepared to conduct a “full, large-scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”
Tangent
In a press conference later on Monday, Trump was asked about his decision to hold off on striking Iran, and he said: “I put it off for a little while, hopefully, maybe forever” because the Middle Eastern leaders believe “they are getting very close to making a deal.” The president said this was a “very positive development, but we’ll see whether or not it amounts to anything.” Trump acknowledged that there have been times when he thought they were close to a deal and it didn’t work out, but added, “But this is a little bit different.”
What To Watch For
Citing an unnamed senior Iranian official, Reuters reported that the U.S. may be willing to soften some of its demands on the nuclear issue, including allowing Iran to continue some “peaceful nuclear activity under supervision of the International Atomic Energy Agency.” The source also claimed that the U.S. is willing to release a quarter of the frozen funds that Iran is demanding, although the Reuters report added that this has not been confirmed by the U.S. According to Axios, Trump is set to meet members of his national security team in the White House’s Situation Room on Tuesday to “discuss military options.”
How Have Markets Reacted?
The global crude oil benchmark Brent Crude Futures fell more than 2% to $109.70 per barrel on Tuesday. However, the uncertainty about the state of the conflict meant U.S. stock futures were also down across the board, with the Dow and S&P 500 dropping 0.14% and 0.37%, respectively.
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