Iran Reply Leaves Hormuz Diplomacy Exposed Arabian Post

(MENAFN- The Arabian Post) clearfix">Iran has handed Washington its formal response to a US peace proposal, but the exchange has deepened uncertainty over whether a 10-week war can be halted before the Strait of Hormuz crisis inflicts wider damage on energy markets and regional security.

The response was delivered through Pakistan, which has emerged as a key mediator between Tehran and Washington. Iran's position centres on an immediate cessation of hostilities across the region, including Lebanon, where fighting involving Israel and Hezbollah has complicated US efforts to separate the Iran file from broader Middle East tensions.

President Donald Trump swiftly rejected Tehran's answer, calling it“TOTALLY UNACCEPTABLE” on Truth Social. His response sent oil prices higher, with Brent crude climbing above $105 a barrel and US crude moving close to $100 as traders priced in the risk of a prolonged closure or disruption at Hormuz.

The waterway, a narrow passage between Iran and Oman, normally carries about one-fifth of global oil and liquefied natural gas flows. Traffic has fallen to a trickle since the war began on February 28, and shipping data has shown only a small number of crude tankers leaving the strait in recent days, often with tracking signals disabled to reduce exposure to attack.

Tehran's reply is understood to demand an end to the US naval blockade, guarantees against further attacks, compensation for war damage, sanctions relief and restoration of Iran's oil trade. Iran has also insisted on its sovereignty over the Strait of Hormuz, a position Washington and several regional capitals regard as unacceptable because of the waterway's international importance.

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The US proposal sought to stop the fighting before moving to harder issues, including Iran's nuclear programme, ballistic missile capability and its support for armed groups across the region. The main diplomatic challenge is that Iran wants any ceasefire to cover all fronts, while Washington and Israel want Tehran to address nuclear and security questions before a broader settlement takes shape.

Nuclear terms remain the central obstacle. Iran has signalled willingness to discuss limits on its highly enriched uranium stockpile, including possible dilution of part of it and transfer of some material to a third country. Tehran has not accepted demands to dismantle nuclear facilities or suspend enrichment for the long period sought by Washington. That gap has left negotiators searching for a temporary memorandum of understanding rather than a comprehensive accord.

Israel has kept pressure on Washington not to accept a narrow ceasefire that leaves Iran's enrichment infrastructure intact. Prime Minister Benjamin Netanyahu has argued that the war cannot be considered over until enriched uranium is removed, enrichment sites are dismantled and Iran's proxies and missile capabilities are addressed. He has said diplomacy would be the preferred route but has not ruled out force.

Iranian President Masoud Pezeshkian has adopted a defiant tone, saying Iran will not bow to its enemies and will defend national interests. Parliament Speaker Mohammad Bagher Ghalibaf has argued that any ceasefire cannot hold while the blockade remains in place, reinforcing the hard line Tehran has taken over the strait and sanctions.

Pakistan's mediation has gained importance because Islamabad maintains workable channels with Tehran while retaining access to the Trump administration. Qatar, Saudi Arabia, Turkiye and China have also been involved in diplomatic contacts, reflecting the wider economic stakes. Pakistan has been particularly exposed to the energy shock, with fuel and power costs rising as Gulf supplies face delays.

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Washington is also pressing China to use its leverage with Tehran. Trump is expected to discuss Iran with President Xi Jinping during a visit to Beijing this week, as China's dependence on Gulf energy and its economic links with Iran make it one of the few outside powers with potential influence over Tehran's calculations.

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