Iran demands compensation from US, stresses Hormuz sovereignty

Iranian state media reported early Monday that Tehran’s latest counterproposal to a US peace plan demands compensation from Washington and asserts sovereignty over the Strait of Hormuz, while also calling for an end to sanctions and the release of frozen assets abroad. The proposal rejects earlier US terms that would have required submission to what Iranian officials described as President Donald Trump’s excessive demands, according to state broadcaster Press TV.

The response emphasizes what Tehran termed the fundamental rights of the Iranian nation, the report added.

Trump rejects proposal as ‘unacceptable’

Trump dismissed the Iranian response on Sunday, writing on his Truth Social platform that he had reviewed the proposal and deemed it totally unacceptable. The rejection comes amid heightened tensions in the region following the US and Israeli strikes on Iran that began on February 28.

Those strikes prompted retaliatory attacks by Tehran and disruptions to maritime traffic through the strategic Strait of Hormuz.

Fragile truce and naval blockade

A ceasefire took effect on April 8 through Pakistani mediation, though subsequent talks in Islamabad failed to secure a lasting agreement. The truce was later extended by Trump without a specified deadline.

Since April 13, Washington has enforced a naval blockade targeting Iranian maritime traffic in the waterway, further complicating diplomatic efforts to resolve the conflict.