Iran says peace proposal includes reparations for war damage, US troop withdrawal

• 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.