Iran tables peace proposal, but Trump says he is not satisfied

Iran has conveyed a "multi-layered proposal" to Washington in an attempt to break the deadlock over peace talks, a senior official familiar with the development told news agency PTI on Sunday (May 3).

The 14-point proposal is a phased de-escalation framework that seeks to separate immediate conflict management from the longer-standing dispute over Tehran's nuclear programme, the central sticking point in negotiations.

The first component focuses on urgent de-escalation around the Strait of Hormuz, with Iran indicating willingness to ease tensions provided Washington scales back its military posture and eases economic pressure, including restrictions on Iranian oil exports.

Also Read: India-linked LPG tanker Sarv Shakti crosses Strait of Hormuz amid shipping disruptions

The second seeks to decouple the restoration of maritime trade from nuclear negotiations, arguing that economic normalisation should come before binding nuclear commitments.

On the third front, Tehran has signalled conditional flexibility on enrichment limits and enhanced monitoring, but only in exchange for guaranteed sanctions relief and formal recognition of its nuclear rights.

Iran has also sought security guarantees against future military action by the US or its regional allies.

Trump rejects offer, warns of options

US President Donald Trump was unmoved. "At this moment, I'm not satisfied with what they're offering," he said, adding that Tehran was "asking for things that I can't agree."

When pressed on whether he would launch fresh strikes if talks collapsed, Trump said: "Do we want to go and just blast the hell out of them and finish them forever — or do we want to try and make a deal?" He said he would "prefer not" to launch a major offensive, but stopped short of ruling it out.

Iran's Deputy Foreign Minister Kazem Gharibabadi responded that the ball was now in Washington's court. "Iran, with the aim of securing its national interests and security, is prepared for both paths," he said.

China pushes back on US sanctions

As diplomacy stalls, the economic fallout is widening. China has issued a prohibition order blocking US sanctions on five Chinese refiners, including Hengli Petrochemical and four smaller independent facilities, accused of buying Iranian oil.

Beijing's Commerce Ministry called the sanctions a violation of international law, saying they "shall not be recognised, enforced, or complied with." China buys more than half its oil from West Asia, with Iranian crude accounting for over 80 per cent of Iran's total oil shipments in 2025, according to data firm Kpler.

India scrambles for cooking fuel

India has been among the hardest hit. As the world's second-largest LPG consumer, the country has faced acute shortages of cooking fuel since the US and Israel launched strikes on Iran on February 28. Panic buying and long queues have followed. New Delhi has raised domestic LPG production by 60 per cent to 54,000 tonnes and ordered ports to prioritise gas tankers.

Also Read: US warns shipping firms over paying tolls in Strait of Hormuz; Iran says war 'likely' to restart

Daily consumption has fallen by 10,000 tonnes to 80,000 tonnes. India has managed to move eight LPG vessels through Hormuz via bilateral negotiations with Tehran, with the Sarv Shakti, carrying 45,000 tonnes of LPG for state-run Indian Oil Corp., completing a rare transit on Saturday.

The Iran war has been on hold since April 8. One round of peace talks has taken place in Islamabad, with Pakistan playing a facilitative role. No further formal talks have been scheduled.