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Iran outlines peace terms including reparations and troop withdrawal

Published on: May 19, 2026 2:30 PM

Iran says peace proposal includes reparations for war damage, US troop  withdrawal | The Business Standard

Iran has said its latest peace proposal to the United States includes demands for war reparations, sanctions relief and the withdrawal of US forces from areas near Iranian borders as efforts continue to preserve a fragile ceasefire.

According to Iranian state media, Tehran’s proposal calls for an end to hostilities on all fronts, including Lebanon, alongside the lifting of economic sanctions, release of frozen Iranian funds and removal of what Iran describes as a US maritime blockade.

Read More: Iran rejects US plan, sets 5 conditions to end war

Iran’s Deputy Foreign Minister Kazem Gharibabadi said the peace terms also include compensation for damage caused during the recent US-Israeli military campaign.

The proposal marks Tehran’s first public comments on the latest diplomatic offer sent to Washington amid renewed attempts to revive negotiations.

US President Donald Trump said earlier that he had paused a planned resumption of attacks on Iran after receiving a new peace proposal, adding there was now a “very good chance” of reaching a deal.

Trump also stated that leaders from Qatar, Saudi Arabia and the United Arab Emirates had urged restraint, expressing confidence that negotiations could still succeed.

Sources indicate Pakistan has continued acting as a communication channel between Tehran and Washington, having previously hosted talks between both sides.

A Pakistani source confirmed that Islamabad helped convey the Iranian proposal to the United States.

Iranian officials have suggested Washington may be showing greater flexibility during negotiations, including willingness to release part of Iran’s frozen overseas funds and allow limited peaceful nuclear activity under international supervision.

Read More: Iran sets strict terms for ceasefire with Israel, US

Reports suggest the United States may agree to release a portion of Iranian assets held abroad, though Tehran continues demanding full access to all frozen funds.

The latest diplomatic developments come as international attention remains focused on the Strait of Hormuz, a crucial global oil transit route affected by regional tensions.

Analysts say both sides appear to be balancing military pressure with renewed diplomatic efforts to avoid further escalation.

Filed Under: Business Tagged With: Donald Trump, Iran US talks, Latest, Middle East conflict, peace proposal, sanctions relief, Strait of Hormuz

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