Iran has warned the United States to accept its latest peace proposal or face continued setbacks, as tensions remain high despite an ongoing ceasefire in the wider Middle East conflict.
Read More: Trump rejects Iran proposal as peace deal hopes fade
Iran’s chief negotiator, Mohammad Bagher Ghalibaf, said Washington has no option but to recognise what Tehran calls the legitimate rights of the Iranian people under its newly submitted 14-point peace plan. He said any attempt to ignore the proposal would only lead to repeated failure.
#NSTworld Iran warns US to accept peace terms or face ‘failure’https://t.co/CitLyWRAOF
— New Straits Times (@NST_Online) May 12, 2026
The latest diplomatic exchange comes after US President Donald Trump criticised Iran’s response to an earlier American proposal, calling Tehran’s counteroffer “totally unacceptable”. Trump also claimed the current truce, which has paused direct fighting for more than a month, was under pressure and could collapse.
According to Iranian officials, their proposal calls for an end to hostilities across all fronts, including Lebanon, a halt to the US naval blockade of Iranian ports, and the release of Iranian assets frozen abroad under longstanding sanctions.
The conflict began more than two months ago following US-Israeli strikes on Iran and quickly expanded across the region, affecting global trade routes and energy markets. The Pentagon recently said the financial cost of the war has risen to nearly $29 billion.
Trump’s remarks triggered fresh uncertainty in oil markets, with concerns growing over the Strait of Hormuz, a key global shipping route through which around one-fifth of the world’s oil and natural gas passes. Iran has restricted maritime traffic there and introduced toll mechanisms for crossing vessels, further escalating tensions.
Meanwhile, Iran’s Revolutionary Guards announced military drills in Tehran aimed at improving readiness against what they described as threats from American and Israeli forces.
On the Lebanon front, Israeli strikes continued in the south, with local authorities reporting multiple casualties. Fighting has persisted despite a ceasefire agreement, as exchanges between Israel and Iran-backed Hezbollah show little sign of easing.
Read More: Iran sends response to US peace proposal via Pakistan
Analysts say both Tehran and Washington remain committed to negotiations, but neither side appears willing to make major concessions.