• US shows some flexibility on frozen funds, nuclear activity: sources.
• Adds Washington denies oil sanctions waiver for Iran.
• Fragile ceasefire holds after US-Israeli strikes against Iran.
  

Tehran’s latest peace proposal to the United States involves ending hostilities on all fronts, including Lebanon, the exit of US forces from areas close to Iran, and reparations for destruction caused by the US-Israeli war, state media reported on Tuesday.

In Tehran’s first comments on the proposal, Deputy Foreign Minister Kazem Gharibabadi said Tehran also sought the lifting of sanctions, the release of frozen funds and an end to the US marine blockade on the country, according to IRNA news agency.

The terms as described in the Iranian reports appeared little changed from Iran’s previous offer, which US President Donald Trump rejected last week as “garbage”.

Trump said on Monday he had paused a planned resumption of attacks on Iran after Tehran sent a new peace proposal to Washington, and that there was now a “very good chance” of reaching a deal limiting Iran’s nuclear programme.

Reuters could not determine whether preparations had been made for strikes that would mark a renewal of the war Trump started in late February.

Under pressure to reach an accord that would reopen the Strait of Hormuz — a key supply route for global supplies of oil and other commodities — Trump has previously expressed hope that a deal was close on ending the conflict, and similarly threatened heavy strikes on Iran if Tehran did not reach a deal.

In a social media post, Trump said the leaders of Qatar, Saudi Arabia and the United Arab Emirates had requested that he hold off on the attack because “a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.”

A Pakistani source confirmed that Islamabad, which has conveyed messages between the sides since hosting the only round of peace talks last month, had shared the Iranian proposal with Washington.

Although neither side has publicly disclosed any concessions in negotiations that have been stalled for a month, a senior Iranian official suggested on Monday that Washington may be softening some of its demands.

The source said the US had agreed to release a quarter of Iran’s frozen funds — totalling tens of billions of dollars — held in foreign banks. Iran wants all the assets released.

And the source said Washington had shown more flexibility in agreeing to let Iran continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency.

• Trump hopes for securing agreement to end the war.
• US president says had prepared a new attack for Tuesday.
• Trump warns of large-scale attack if no agreement reached.

US President Donald Trump said he was planning a major new assault on Iran on Tuesday, but held off as he saw hope for securing a so far elusive agreement to end the war.

Trump said that he stopped his purported attack plan at the urging of Gulf Arab allies, which Iran has threatened with reciprocal attacks if the United States and Israel end a nearly six-week ceasefire.

Trump, who had indefinitely extended the truce and made clear he wants to exit a war that has proven to be a political liability, said he had prepared a new attack for Tuesday after Iran refused his outlines of a deal.

The leaders of Qatar, Saudi Arabia and the United Arab Emirates asked him “to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place,” Trump wrote on his Truth Social platform.

But Trump added he had instructed the US military to be “prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”

Speaking later at a White House event, Trump said there had been a “very positive development” and that Arab allies said a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.

“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’d be very happy,” Trump said.

Iran has repeatedly rebuffed Trump’s offers and has exerted control over the Strait of Hormuz, the vital waterway into the Gulf, sending global oil prices spiraling.

Iranian foreign ministry spokesman Esmaeil Baqaei confirmed exchanges with the United States through mediator Pakistan and said Tehran made clear its “concerns.”

The Islamic republic, whose supreme leader was killed in the initial strikes on February 28 but has proven resilient, is demanding the release of Iranian assets frozen abroad, the lifting of long-standing sanctions and reparations for the war.

Iranian President Masoud Pezeshkian, considered a moderate in a system increasingly dominated since the war by the hardline Revolutionary Guards, said that speaking with Washington “does not mean surrender” and that Iran would defend its “dignity” and rights.

Iran’s Fars news agency said Sunday that Washington had presented a five-point list, which included a demand for Iran to keep only one nuclear site in operation and transfer its stockpile of highly enriched uranium to the United States.

US authorities had refused to release “even 25%” of Iran’s frozen assets or pay any reparations, Fars said.

But Iran’s Tasnim news agency, citing an unnamed source close to the Iranian negotiating team, said the United States made one new step forward in the latest text by agreeing to waive oil sanctions while negotiations were underway.

New Hormuz body

In an earlier proposal, which was sent last week, Iran had called for an end to the war on all fronts, including Israel’s campaign in Lebanon, as well as a halt to a US naval blockade on Iranian ports in place since April 13.

Fars said the Iranian proposal had emphasised that Tehran would continue to manage the strategic Strait of Hormuz, a vital energy conduit which Iran has largely kept closed since the start of the war.

On Monday, the Persian Gulf Strait Authority, a new body Iran has set up to manage the strait, said it would provide “real-time updates” on the waterway via X.

The Revolutionary Guards also said Monday that internet fiber optic cables passing through the strait could be brought under an Iranian system of permits.

Hoping to control oil prices, the US Treasury extended by 30 days a sanctions waiver for Russian oil cargoes already at sea, continuing to ease the pressure on Moscow since its 2022 invasion of Ukraine.

• China to host Russia’s Putin after Trump’s high-profile visit.
• Putin visits Beijing from May 19-20, his 25th trip to China.
• Putin expected to seek closer energy cooperation with China.

Chinese leader Xi Jinping is set to host his “old friend” Vladimir Putin less than a week after Donald Trump’s high-profile visit, as Beijing seeks to project itself as a stable and predictable power in a world shaken by trade tensions, wars and an energy crisis.

China and Russia have cast Putin’s two-day trip this week — his 25th visit to China — as further evidence of their “all-weather” partnership, even as the West urges Beijing to pressure Moscow into ending its war in Ukraine.

Putin says China and Russia support each other’s “core interests” as he pursues additional energy deals with the world’s second-largest economy in the face of Western sanctions.

“The Xi-Putin summit will telegraph to the world that the China-Russia strategic partnership remains the cornerstone of both countries’ foreign policies and that any attempt by the US to drive a wedge between them is destined to fail,” said Ian Storey, principal fellow at the ISEAS-Yusof Ishak Institute in Singapore.

The visit follows Trump’s trip last week, which generated positive optics but few major commercial agreements. Xi described Sino-US ties as a relationship of “strategic stability,” challenging the “strategic competition” framework associated with former US President Joe Biden.

By hosting foreign leaders, China is seeking to strengthen its image as a pillar of global stability, in contrast to US struggles to end the war in Ukraine and contain a separate conflict with Iran that has disrupted global energy flows.

Beijing seeks to reassure 

During state visits, Beijing tries to reassure Western trading partners, including the US, about its rise as an economic and technological power while downplaying risks in their ties.

The White House said after Trump’s China visit that a consensus had been reached on issues that will enhance “stability” for global businesses and consumers.

At the same time, China’s engagement with countries such as Russia also reinforces its message that its diplomacy is consistent and not swayed by the actions of strategic partners, despite Western pressure.

“It’s unrealistic to expect Xi to put pressure on Putin to end the war in Ukraine. Xi doesn’t wield that kind of influence over Putin and in any case the Chinese understand how a defeat for Russia in Ukraine would weaken Putin’s political standing,” said Storey.

“As such, Beijing will continue to provide Moscow with diplomatic cover at the UN, economic assistance and dual-use technologies for Russia’s armed forces,” he said.

China says it has never provided lethal weapons to either side of the Russia-Ukraine conflict and that it strictly controls exports of dual-use items.

“During the visit, the two heads of state will exchange views on cooperation across all areas of bilateral relations, as well as on international and regional issues of mutual concern,” Guo Jiakun, spokesperson at the Chinese Foreign Ministry, told a regular news conference on Monday.

Power of Siberia 2 pipeline

During Putin’s last visit in September 2025, Russia and China agreed to build the Power of Siberia 2 gas pipeline, but have yet to agree on pricing.

Energy supply shortages linked to conflict in Iran may back Russia’s case for the pipeline as a long-term gas source. Beijing is expected, however, to stick to its diversification strategy by discussing supply deals with both Turkmenistan and Russia, said a Beijing-based industry expert.

China could agree on a broad deal with Russia covering annual supply volumes and terms such as supply flexibility and seasonality, while leaving pricing open-ended, said the person, who declined to be named due to the sensitivity of the topic.

Price negotiations could take years.

Xi in 2014 announced a fourth pipeline linking Turkmenistan’s giant Galkynysh gas field to northwest China, but the project has yet to be finalised due to pricing disputes and complexity involving Uzbekistan, Kyrgyzstan and Tajikistan, through which the pipeline transits.

China remains the largest buyer of Russian oil, including pipeline supplies and sea-borne shipments.

Despite Western sanctions on Russia’s oil exports, Chinese independent refiners are regular customers, with transactions settled largely in Chinese yuan. State oil refiners also recently resumed purchases following a brief US sanction waiver.

Russia agreed in 2025 to supply an additional 2.5 million metric tons of oil per year to China via Kazakhstan.

“In principle, we have reached a high degree of consensus regarding the taking of a serious — indeed, very substantial — step forward in our cooperation within the oil and gas sectors,” Putin told reporters on May 9.

“If we succeed in finalising them and bringing them to a conclusion during the visit, I will be very pleased.”