WASHINGTON/TEHRAN – Iran on Sunday sharply escalated pressure on the United States, warning that Donald Trump must choose between military confrontation and a negotiated settlement, as both sides remain locked in a tense standoff despite an ongoing ceasefire.
In its latest statement, the Islamic Revolutionary Guard Corps (IRGC) said Washington now faces a narrowing set of options, framing the situation as a choice between an “impossible” war or accepting what it termed a “bad deal” with Tehran. The warning comes alongside reports that Iran has issued a deadline for the United States to lift its naval blockade on Iranian ports. The statement reflects a growing hardening of positions, even as diplomatic channels remain open. Iranian officials said the deadline is aimed at forcing a decisive shift in US policy, while Washington continues to weigh its response.
At the core of the latest developments is a 14-point proposal submitted by Iran through mediators, which Tehran describes as a roadmap to end the conflict within weeks.
The plan reportedly calls for the immediate lifting of the US naval blockade, reopening of maritime routes, withdrawal of US forces from areas around Iran, and the release of frozen Iranian financial assets. It also includes demands for sanctions relief, compensation for war-related damages, and guarantees against future attacks by the United States and its allies. A key feature of the proposal is a sequencing shift: Iran has suggested delaying negotiations over its nuclear programme until after broader de-escalation measures are implemented. Analysts say this reflects an attempt by Tehran to break the diplomatic deadlock by separating the most contentious issue from immediate ceasefire arrangements.
However, the proposal has been met with scepticism in Washington. Trump said he would review the plan but expressed doubts about its acceptability, stating that Iran had “not paid a big enough price.”
The Strait of Hormuz continues to be the central point of confrontation, with both sides maintaining competing restrictions on maritime activity.
Iran has effectively tightened its control over the waterway, limiting shipping and warning vessels to comply with its conditions, while the United States has maintained a naval blockade targeting Iranian ports.
Fresh tensions emerged on Sunday after a cargo vessel was attacked near the Strait in an incident involving small craft. While no group claimed responsibility, the attack is seen as part of a broader pattern of maritime confrontations linked to the crisis.
The situation has raised alarm among global markets and governments, as the Strait is a critical artery for international energy supplies. Disruptions have already driven oil prices significantly higher and contributed to economic uncertainty worldwide.
Iran has also floated controversial ideas, including imposing tolls on ships transiting the waterway, a move widely criticised as a violation of international maritime norms.
Trump has sent mixed signals, simultaneously engaging in diplomacy while keeping the threat of military action alive.
Speaking to reporters, he confirmed that he is reviewing Iran’s proposal but warned that renewed strikes remain an option if Tehran “misbehaves.”
US President Donald Trump said on Saturday he had been told about the concept of a deal with Iran, but was waiting for the exact wording, while warning there was still the possibility of restarting strikes on the country if Tehran misbehaves.
Meanwhile, a senior Iranian official said that an Iranian proposal so far rejected by Trump would open shipping in the Strait of Hormuz and end the US blockade of Iran while leaving talks on Iran’s nuclear program for later.
When asked about Iran’s proposal before boarding a flight to Miami at West Palm Beach, Florida, Trump replied: “They told me about the concept of the deal. They’re going to give me the exact wording now”.
He added on his social media channel that he could not imagine the proposals would be acceptable and that Iran had not paid a big enough price for what it had done.
Asked if he might restart strikes on Iran, Trump replied: “I don’t want to say that. I mean, I can’t tell a reporter that. If they misbehave, if they do something bad, right now we’ll see. But it’s a possibility that could happen”.
Trump said the US Navy was acting “like pirates” in carrying out Washington’s naval blockade of Iranian ports during the US and Israel’s war against Iran.
Trump made the comments while describing the seizure by US forces of a ship a few days ago.
“We took over the ship, we took over the cargo, we took over the oil. It’s a very profitable business,” Trump said in remarks on Friday evening. “We’re like pirates. We’re sort of like pirates, but we are not playing games”.
At the same time, the US administration is facing mounting domestic pressure over the economic fallout from the crisis, particularly rising fuel prices linked to disruptions in Gulf energy supplies. Analysts say this could influence Washington’s willingness to pursue a diplomatic outcome.
Trump has also defended US naval operations in the region, including recent seizures of vessels, describing them as necessary measures in the ongoing confrontation.
Iranian officials have warned that the risk of renewed conflict remains high. Military leaders have indicated that contingency plans are in place and suggested that any escalation by the United States would be met with a strong response.
Recent statements from Iranian commanders point to the possibility of “surprise measures,” signalling that Tehran is prepared for both diplomatic and military scenarios.
At the same time, the IRGC’s messaging suggests confidence in Iran’s strategic position, particularly its leverage over the Strait of Hormuz.
Although a ceasefire remains technically in place, recent developments indicate that it is under increasing strain.
Naval incidents, continued blockades, and the absence of a comprehensive agreement have created a volatile environment in which even minor incidents could trigger escalation.
Diplomatic efforts mediated by regional actors have so far failed to bridge the gap between the two sides, with key disagreements persisting over sanctions, military presence, and nuclear issues.
Iran has made it clear that it wants a permanent end to hostilities rather than further extensions of the ceasefire, while the United States insists on conditions that would limit Iran’s strategic capabilities.
The ongoing standoff is having significant ripple effects across the global economy.
Energy markets remain highly sensitive to developments in the Gulf, with oil prices fluctuating sharply in response to news of potential agreements or escalations.
Analysts warn that prolonged disruption could lead to sustained inflationary pressures, particularly in energy-importing countries, and could dampen global economic growth.
Financial markets have also shown signs of volatility, reflecting uncertainty over the trajectory of the conflict and its potential resolution.
Despite the heightened rhetoric, both sides continue to signal openness to negotiations, albeit under sharply different conditions.
Iran’s proposal is seen as a significant diplomatic move, but its emphasis on delaying nuclear talks remains a major sticking point for the United States.
