Iran Demands Sanctions Relief, Frozen Assets, Reparations, and Blockade End in New Peace Proposal
Tehran’s 14-point plan also calls for US troop withdrawal and end to Lebanon war as Pakistani mediators race to salvage ceasefire
TEHRAN / WASHINGTON — Iran has formally presented the United States with a new peace proposal that demands the lifting of all economic sanctions, the full release of frozen overseas assets, war reparations, and an end to the US naval blockade, Iranian officials confirmed on Tuesday .
The 14-point plan, submitted to Washington through Pakistani mediators, represents Tehran’s latest diplomatic effort to end the war that erupted when the United States and Israel launched coordinated strikes against Iran on February 28 . A fragile ceasefire brokered by Pakistan on April 8 has halted major hostilities, but multiple rounds of talks have failed to produce a lasting agreement .
What Iran Is Demanding: The Core Terms
In the first official comments on the new proposal, Iran’s Deputy Foreign Minister Kazem Gharibabadi outlined the key Iranian demands :
| Demand | Details |
|---|---|
| End to all hostilities | Cessation of fighting on all fronts, including in Lebanon where Israel is battling Hezbollah |
| US troop withdrawal | Exit of American forces from areas near Iranian borders |
| Sanctions lifting | Removal of all economic sanctions imposed on Iran |
| Release of frozen assets | Full access to Iranian funds blocked in foreign banks (estimated over $100 billion) |
| War reparations | Compensation for destruction caused by the US-Israeli military campaign |
| End to naval blockade | Termination of the US maritime blockade on Iranian ports |
| Sovereignty over Strait of Hormuz | Recognition of Iran’s rights over the strategic waterway |
A senior Iranian source told Reuters that the proposal first focuses on securing an end to the war, reopening the Strait of Hormuz, and lifting maritime sanctions, while the more contentious nuclear issues would be deferred to later negotiation rounds .
The Frozen Assets: Billions at Stake
The demand for asset release has emerged as one of the most critical economic issues in the negotiations. According to reports, Iranian funds are blocked across multiple jurisdictions :
| Location | Estimated Frozen Amount |
|---|---|
| China | ~$20 billion |
| India | ~$7 billion |
| Iraq & Qatar | ~$6 billion |
| Europe | ~$1.6 billion |
| Japan | ~$1.5 billion |
| United States (direct) | ~$2 billion |
In total, more than $100 billion of Iranian assets are frozen or restricted abroad—an amount equal to approximately one-quarter of Iran’s total GDP .
While Iranian officials have publicly demanded the release of all frozen funds as a core condition, a senior Iranian source indicated that the United States has so far agreed to release approximately 25 percent of these assets . The US has not officially confirmed any such agreement, and a senior US official previously denied claims that Washington had agreed to waive oil sanctions during negotiations .
War Reparations: A Sticking Point
Iran’s demand for war reparations marks one of the most contentious elements of the proposal. Tehran maintains that the United States and Israel launched an “illegal and unprovoked” war and should therefore compensate Iran for the destruction inflicted during the 40-day bombing campaign .
The United States has categorically rejected any payment of war reparations. According to reports, Washington’s response to Iran’s earlier proposal included a firm refusal “to pay any compensation or damages” .
The Nuclear Question: Deferred but Not Resolved
While Iran’s proposal focuses on ending the war and lifting sanctions in the first phase, nuclear issues have been left for later negotiation rounds . This structure reflects a fundamental disagreement between the two sides:
| Issue | Iran’s Position | US Position |
|---|---|---|
| Uranium enrichment | Right under NPT; non-negotiable | Demands long-term suspension |
| Enriched uranium stockpile | Keep inside Iran | Transfer 400kg to US |
| Nuclear facilities | Multiple operational | Limit to one facility |
| Negotiation sequencing | First end war, then discuss nuclear | Nuclear concessions upfront |
Foreign Ministry spokesman Esmaeil Baghaei reiterated on Monday that Iran’s right to uranium enrichment under the Nuclear Non-Proliferation Treaty “does not require the acknowledgment of outside parties” .
However, analysts have suggested Iran may be showing some flexibility, potentially opening the door to a shorter suspension of enrichment—perhaps three to five years—rather than the two-decade freeze Washington has reportedly sought .
The Diplomatic Dance: Mediation Through Pakistan
Pakistan has served as the primary mediator between Washington and Tehran, hosting the only round of direct peace talks in Islamabad on April 11-12 . Since then, the two sides have exchanged multiple proposals through Pakistani channels.
The diplomatic process has been characterized by public rejection followed by backchannel persistence. After the United States publicly rejected Iran’s earlier proposal—with President Trump calling it “garbage”—Iranian officials revealed that Washington had simultaneously submitted “a set of revised points and considerations” through the Pakistani mediator .
“Although the American side publicly announced that this plan was rejected, we received from the Pakistani mediator a set of revised points and considerations from their point of view,” Baghaei told reporters .
A Pakistani source familiar with the talks expressed frustration with the process, telling Reuters that the sides “keep changing their goalposts” and warned that “we don’t have much time” .
Trump’s Response: Paused Attack but “Very Good Chance”
The Iranian proposal comes after President Trump announced on Monday that he had postponed a planned military strike on Iran at the request of Qatari, Saudi, and Emirati leaders who believe a diplomatic deal may be within reach .
“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,” Trump told reporters .
However, Trump also made clear that the postponement is conditional. He instructed the US military to remain prepared for a “full, large-scale assault” if an acceptable deal is not reached .
Military Posturing: “New Fronts” Warning
Despite diplomatic efforts, Iran’s military has issued stark warnings against any resumption of US attacks. Army spokesman Mohammad Akraminia declared that Iran would “open new fronts” if the war resumes, using “new equipment and new methods” .
This warning comes as US intelligence has reportedly assessed that Iran used the month-long ceasefire to adapt its tactics. According to The New York Times, Iran has dug out ballistic missile sites previously buried by US strikes, repositioned mobile launchers, and reinforced underground facilities . US officials have reportedly acknowledged that despite the bombing campaign, Iran has emerged as a more hardened and resilient adversary .
What Comes Next
The diplomatic window appears narrow. Trump has indicated that Gulf leaders asked for “two or three days” to pursue negotiations—a timeline that is rapidly expiring.
| Scenario | Likelihood | Key Factors |
|---|---|---|
| Diplomatic breakthrough | Uncertain | Iran would need to offer nuclear concessions; US would need to offer sanctions relief |
| Extended ceasefire | Moderate | Gulf states may broker temporary face-saving measures |
| Renewed US-Israeli strikes | Possible | Talks could collapse over nuclear or reparations issues |
| Full-scale regional war | Low but rising | Hezbollah and Gulf states could be drawn in |
For now, the ceasefire holds—but barely. As the clock ticks toward an uncertain deadline, both sides appear to be using every hour to position themselves for either a deal or a return to war.
Frequently Asked Questions (FAQs)
Q1: What does Iran’s new peace proposal demand?
A: Iran’s 14-point proposal demands an end to hostilities on all fronts (including Lebanon), the withdrawal of US troops from areas near Iran, the lifting of all sanctions, the release of frozen overseas assets (over $100 billion), war reparations, an end to the US naval blockade, and recognition of Iran’s sovereignty over the Strait of Hormuz .
Q2: How much of Iran’s money is frozen abroad?
A: More than $100 billion of Iranian assets are frozen or restricted in foreign countries—an amount equal to approximately one-quarter of Iran’s total GDP. China holds the largest share (about $20 billion), followed by India ($7 billion), Iraq and Qatar (about $6 billion combined), Europe ($1.6 billion), and Japan ($1.5 billion). About $2 billion is frozen directly in the United States .
Q3: Has the United States agreed to any of Iran’s demands?
A: According to senior Iranian sources, the US has reportedly agreed to release approximately 25 percent of Iran’s frozen assets and has shown flexibility on allowing some peaceful nuclear activity under IAEA supervision. However, the US has not officially confirmed any concessions, and a senior US official denied claims that Washington had agreed to waive oil sanctions .
Q4: What has the US refused to accept?
A: The United States has reportedly refused to pay war reparations, rejected releasing all frozen assets, and demanded that Iran transfer its 400kg stockpile of highly enriched uranium to the US as part of any deal .
Q5: Is the ceasefire still in place?
A: Yes, the Pakistan-brokered ceasefire that took effect on April 8 remains officially in place. However, talks have stalled, and President Trump has warned that the “clock is ticking” for Iran to reach a deal .
Q6: What role is Pakistan playing in the negotiations?
A: Pakistan has served as the primary mediator between the United States and Iran, hosting the only round of direct peace talks in Islamabad on April 11-12. Pakistani officials have been conveying proposals and amendments between the two sides .
Q7: Is Iran willing to compromise on its nuclear program?
A: Iran has publicly stated that its right to uranium enrichment is “non-negotiable.” However, analysts suggest Iran may be showing flexibility on the duration of any enrichment suspension—potentially accepting a freeze of three to five years rather than the two decades Washington has reportedly sought .
Q8: Could the war resume soon?
A: The risk remains significant. President Trump has ordered the US military to remain prepared for a “full, large-scale assault” if negotiations fail. Iran has warned it will “open new fronts” in response. The diplomatic window requested by Gulf leaders is reportedly only two or three days .
This is a developing story. Reflecto News will continue to provide updates on the Iran-US negotiations, the status of the ceasefire, and any diplomatic or military developments.