Iran’s 10-point peace plan: What’s on the table and why it matters

Tehran offers Hormuz reopening with conditions as Trump sets deadline for strikes

Last updated:
Alex Abraham, Senior Associate Editor
The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling a significant share of global oil and gas shipments.
The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling a significant share of global oil and gas shipments.
IANS

Iran has unveiled a 10-point proposal aimed at ending its conflict with the United States and Israel, offering to reopen the Strait of Hormuz and reduce regional tensions in exchange for sanctions relief and security guarantees.

The plan, delivered through Pakistani mediation, comes as US President Donald Trump has issued a firm deadline for Iran to comply with his demands or face a new wave of strikes targeting key infrastructure.

What is Iran’s 10-point peace plan?

Iran’s proposal is a structured framework to end the war permanently rather than temporarily pause it.

According to Iranian officials and state media, the key elements include:

  • A guarantee that Iran will not be attacked again

  • A permanent end to the war, not just a ceasefire

  • An end to Israeli strikes in Lebanon and against Iranian allies

  • The lifting of all US sanctions on Iran

  • Iran agreeing to reopen the Strait of Hormuz

  • Introduction of a $2 million fee per ship transiting Hormuz

  • Revenue from shipping fees to be shared with Oman

  • Funds to be used for reconstruction of war-damaged infrastructure

  • Establishment of safe passage protocols through Hormuz

  • A broader framework to end regional hostilities

Why is the Strait of Hormuz central to the proposal?

The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling a significant share of global oil and gas shipments.

Iran has effectively restricted shipping through the strait during the conflict, disrupting global energy markets. Its offer to reopen the route is a key bargaining tool in negotiations.

The proposed transit fee — around $2 million per ship — reflects Tehran’s attempt to monetise control over the strait while funding reconstruction efforts.

What did the US propose earlier?

Before Iran’s latest move, the United States had put forward a 15-point framework through Pakistani intermediaries.

That plan reportedly included:

  • An immediate ceasefire

  • Reopening of the Strait of Hormuz

  • Talks toward a broader peace agreement within 15–20 days

  • Wider conditions tied to Iran’s regional activity and military posture

Iran rejected the proposal, arguing that a ceasefire without a permanent settlement was insufficient.

What has Trump said about Iran’s proposal?

Trump acknowledged the significance of Iran’s proposal but rejected it in its current form.

“It’s a significant proposal. It’s a significant step.”

He added: “It’s not good enough. But it’s a very significant step.”

At a White House news conference, Trump warned that if Iran fails to meet US demands by the Tuesday deadline, major strikes could follow.

“It will take them 100 years to rebuild,” he said.

He has also threatened to target civilian infrastructure, including bridges and power plants, if the Strait of Hormuz is not reopened.

Key takeaways

  • Iran has proposed a 10-point plan to end the war

  • Focus is on a permanent settlement, not a temporary ceasefire

  • Includes Hormuz reopening and sanctions relief demands

  • Introduces a $2m shipping fee model linked to reconstruction

  • US has called the proposal “not good enough”

  • Trump has set a deadline for compliance or military escalation

How has Iran responded to US demands?

Iran has taken a firm stance, rejecting the US framework and pushing for a broader resolution.

Foreign ministry spokesman Esmail Baghaei described the earlier US proposal as “extremely excessive, unusual and illogical.”

Iranian state media also emphasised that the latest proposal “rejected a cease-fire” and instead called for a permanent end to the war.

Why are negotiations still stuck?

Despite ongoing mediation efforts, key differences remain unresolved:

  • The US is pushing for immediate de-escalation and compliance

  • Iran is demanding long-term guarantees and sanctions relief

  • Both sides remain divided over regional security conditions

With Trump’s deadline approaching, the risk of further escalation remains high.

What happens next?

Negotiations are continuing through intermediaries, including Pakistan and other regional actors.

However, with the US rejecting Iran’s proposal so far and warning of imminent strikes, the situation remains volatile, with outcomes dependent on last-minute diplomatic progress.

Alex Abraham
Alex AbrahamSenior Associate Editor
Alex has been on the frontline of global headlines for nearly 30 years. A Senior Associate Editor, he’s part newsroom veteran and part globe-trotting correspondent. His credentials? He was part of the select group of journalists who covered Pope Francis’ historic visit to the UAE - flying with the pontiff himself. With 27 years on the ground in the Middle East, Alex is one of the most trusted voices in the region when it comes to decoding politics and power plays. He breaks down global affairs into slick, 60-second news - his morning reels are practically a daily ritual for audiences across the UAE. Sharp. Grounded. Fast. Insightful. That’s Alex at his best, bringing a steady editorial hand to every story he tells.

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