Iran, however, has rejected any temporary pause in fighting. Tehran’s position is that a ceasefire alone is insufficient — it wants a permanent, definitive end to the war, with guarantees that hostilities will not be restarted. This fundamental disagreement over whether any deal should be a pause or a permanent settlement is currently the central sticking point in the talks.

Reports from Iraninan and Gulf countries’ news websites said that Iran would want the end to the war sanctioned by the US Congress or other international organisations, as it does not trust the Trump administration and Israel’s government under Benjamin Netanyahu.

Iran’s 10-point proposal

After rejecting the US framework, Iran sent its own 10-point counterproposal to Pakistani mediators. The plan was reportedly discussed internally for two weeks before being transmitted. A US official who reviewed the response called it “maximalist,” though the White House chose to interpret it as a negotiating opening rather than an outright rejection. Mediators confirmed they are working with Iran on amendments and redrafting, Axios reported.

Iran’s proposal includes a demand for guarantees that it will not face future attacks, and a permanent end to the war. It also calls for an end to Israeli strikes in Lebanon, a lifting of all US and international sanctions, and reconstruction funds for infrastructure damaged by US-Israeli strikes.

On the Strait of Hormuz — the flashpoint of Trump’s ultimatum — Iran has proposed reopening the waterway, but on its own terms. Rather than demanding direct reparations, Iran would charge approximately $2 million per vessel transiting the strait, splitting that fee with Oman, which is on the other side of the Strait. Iran will use its share of the revenue to fund reconstruction after the war, instead of funds directly given for this purpose.

The proposal would also place the strait under joint Iranian-Omani administration, a point confirmed by a former Iranian diplomat cited by The New York Times.

Trump’s position

Trump acknowledged that Iran’s response was, in his words, “significant” but “not good enough.” He has indicated he is highly unlikely to extend his deadline again, though he has done so before.

Trump’s negotiating team — Vice President JD Vance, special envoy Steve Witkoff, and son-in-law Jared Kushner — is said to favour pursuing a deal if one is achievable. However, as reported by Axios, Trump himself appears to be the most hawkish voice in his administration on Iran, with one US official describing him as “the most bloodthirsty”.

Complicating factors

Israeli Prime Minister Benjamin Netanyahu has actively lobbied Trump against agreeing to a ceasefire unless Iran makes concessions that currently appear out of reach — including fully relinquishing all highly enriched uranium. Saudi Arabia and the UAE have echoed similar positions.

Meanwhile, mediators have cautioned the White House that Iranian decision-making is inherently slow, partly due to the communication constraints they are facing amid sustained bombing and injuries to many senior officials, including Supreme Leader Mojtaba Khamenei.