Iran’s New Peace Proposal: Reparations, Troop Withdrawal, End to Sanctions

by | May 19, 2026 | News

Iran has submitted a new peace proposal to Washington demanding reparations for war damage, withdrawal of US forces from areas near Iran, an end to the US marine blockade, lifting of sanctions, and release of frozen assets — terms Washington previously dismissed as “garbage.”

Deputy Foreign Minister Kazem Gharibabadi confirmed the details Tuesday, adding that the proposal also calls for an end to hostilities in Lebanon. A Pakistani source, which has served as intermediary since hosting the only direct talks last month, confirmed the proposal was transmitted to Washington, warning that the sides “keep changing their goalposts” and that time is running out.

President Trump said Monday he paused planned strikes after receiving the proposal, calling the chances of a deal “very good.” Gulf leaders from Qatar, Saudi Arabia, and the UAE reportedly urged restraint.

Some signs of flexibility have emerged: a senior Iranian official suggested the US may agree to release a quarter of Iran’s frozen funds and allow limited peaceful nuclear activity under IAEA supervision — though Washington has confirmed nothing.

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