The proposal, a 15-point plan put forward by the United States and delivered to Tehran via Pakistani intermediaries, has not been formally accepted or rejected. While Iranian officials publicly criticized the initiative, internal deliberations appear to be ongoing, suggesting divisions within Tehran over how to proceed.

Initial reaction “not positive,” but no final decision

A senior Iranian official reported that Tehran’s preliminary response to Washington’s proposal “was not positive,” though it has already been communicated back to the United States through Pakistan.

Despite this, Iran has stopped short of issuing a definitive rejection. The delay in providing a formal answer has fueled speculation that parts of the Iranian leadership may still be weighing the strategic benefits of engaging with the proposal.

Conflicting signals have emerged from Iranian media and officials. State-linked outlets suggested the proposal had been rejected outright, while other sources indicated that discussions are continuing behind closed doors.

What the U.S. proposal includes

According to officials familiar with the plan, the U.S. framework outlines sweeping conditions for de-escalation. These include demands that Iran halt uranium enrichment, scale back its ballistic missile program, and end support for regional allied groups. In exchange, the proposal reportedly offers sanctions relief and a pathway toward a ceasefire.

However, Iranian officials have criticized the terms as overly one-sided. Some described the plan as “maximalist and unreasonable,” reflecting deep mistrust toward Washington’s intentions.

Mediation efforts and indirect diplomacy

Pakistan has emerged as a key intermediary, relaying messages between Tehran and Washington. Officials in Islamabad confirmed they are still awaiting a definitive response from Iran’s leadership.

Other regional actors, including Egypt and Turkey, are also reportedly involved in efforts to broker talks, with potential venues for negotiations under discussion.

Despite these diplomatic efforts, Iran continues to publicly deny direct negotiations with the United States, maintaining a hardline stance in official statements.

War continues amid fragile diplomacy

The diplomatic maneuvering comes against the backdrop of escalating military conflict across the Middle East. Ongoing strikes between Iran, Israel, and U.S.-linked forces have caused significant damage and casualties, while tensions in key strategic areas such as the Strait of Hormuz remain high.

The United States has also increased its military presence in the region, underscoring the fragile balance between diplomacy and further escalation.

Global implications

News that Iran is still considering the proposal has had immediate international repercussions. Markets reacted positively to the possibility of de-escalation, while global leaders, including the United Nations, have called for restraint and renewed diplomatic engagement.

Nevertheless, major obstacles remain. Iran has signaled it may only accept a settlement on its own terms, while U.S. officials continue to push for broad concessions, leaving the outcome uncertain.

Outlook

For now, the situation remains fluid. Iran’s willingness to keep the proposal under review despite its negative initial reaction suggests that diplomacy is still a viable, if uncertain, path forward.

Whether the current backchannel discussions can translate into formal negotiations or a ceasefire will likely depend on both sides’ ability to bridge deep political and strategic divides in the days ahead.

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The round of indirect talks, mediated by the Oman Foreign Minister Sayyid Badr Albusaidi, brought U.S. and Iranian representatives together in Geneva for what officials described as serious and “intense” negotiations. Despite hours of discussion however, no breakthrough was reached. Talks are scheduled to continue at a technical level in Vienna as early as next week, signaling that both sides are still engaged in dialogue.

Progress Amid Deep Divisions

According to mediators, the two delegations were able to find common ground on certain issues particularly procedural elements of future negotiations, but critical gaps remain on core points of contention. Iranian Foreign Minister Abbas Araghchi described the discussions as among the most serious his country has had with the U.S., noting agreement on some issues even as significant differences persisted.

A central sticking point continues to be Iran’s nuclear programme, including its right to enrich uranium and Washington’s demand for stringent verification measures. Iran has insisted on its right to peaceful enrichment under international law and sought lifting of U.S. sanctions as part of any deal, while U.S. officials have tied sanctions relief to concrete restrictions on both nuclear activities and Iran’s ballistic missile programme.

Risk of Wider Conflict Looms

The talks occurred against a backdrop of increasing regional tension, with both sides under domestic and international pressure. U.S. President Donald Trump has warned that, without an agreement, the United States may consider military options to prevent Iran from advancing toward a nuclear weapon, a threat that has spurred fears of a broader Middle East conflict. Iranian leaders have responded by firmly rejecting ultimatums, insisting their nuclear ambitions remain peaceful and warning of retaliation if attacked.

The heightened stakes have been underscored by a significant U.S. military buildup in the region. Carrier strike groups and additional forces have been deployed in waters near Iran, a demonstration of American resolve that has also raised concerns among diplomatic observers about the thin line between deterrence and escalation.

International Reactions and Market Impact

International reactions have been mixed, with many governments advocating continued diplomacy to prevent a disastrous conflict. Energy markets reacted to the news of progress with fluctuations in oil prices, reflecting uncertainty about possible supply disruptions should tensions worsen.

What Comes Next?

Both Tehran and Washington have agreed to reconvene in the coming days, with technical discussions expected to take place in Vienna, involving nuclear experts and negotiators tasked with narrowing the remaining gaps. The agenda will likely focus on sanctions architecture, enrichment levels, verification mechanisms and broader regional security concerns.

Analysts say that while this round’s failure to deliver a deal highlights the complexity of U.S.-Iran relations after decades of distrust and conflict, the willingness to continue talks and the acknowledgment of constructive elements may yet lay the groundwork for a future agreement.

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