US Rejects Iran’s Proposal, Demands Limits on Nuclear Sites and Frozen Assets

The United States presented a five-point response on May 17 rejecting Iran’s proposal to end hostilities and lift sanctions after the war began in late February. The US demanded Iran keep only one nuclear site operational, transfer its stockpile of highly enriched uranium to the US, release less than 25% of frozen Iranian assets, offer no reparations for war damages, and condition any ceasefire on the start of negotiations ^{[1, 2, 3]}.

Iran had called for an immediate end to the war on all fronts, including Israel’s campaign in Lebanon, an end to the US naval blockade on Iranian ports that started April 13, lifting all US sanctions, and releasing all frozen Iranian assets ^{[1, 2, 3]}. It also asserted control of the strategic Strait of Hormuz, largely closed since war began on February 28, through which 20% of the world’s oil supply passes ^{[1, 2, 3]}.

Mehr news agency criticized the US response, saying the refusal to offer tangible concessions will likely lead to a negotiation deadlock. "The United States, offering no tangible concessions, wants to obtain concessions that it failed to obtain during the war," it said ^[1].

Iranian armed forces spokesman Abolfazl Shekarchi warned President Donald Trump against resuming attacks, threatening "unprecedented, offensive, surprising and tumultuous scenarios" if Iran is attacked again ^{[1, 2, 3]}. Deputy speaker of Iran’s Parliament Hamidreza Hajibabaei cautioned that any harm to Iranian oil infrastructure would prompt measures blocking US and global access to regional oil for an extended period ^{[1, 2, 3]}.

The conflict began with joint US-Israeli strikes on February 28. Lebanon entered the war after Hezbollah joined following the assassination of Iran’s Supreme Leader Ali Khamenei. The war has been paused since April 28 ^[3]. The US naval blockade on Iranian ports has remained in effect since April 13 ^{[1, 2, 3]}.

Diplomatic efforts now hinge on whether Iran and the US can bridge their positions ahead of further talks. The standoff continues with no clear timeline for renewed negotiations.