Preparing for negotiations or a ground offensive?

Iran and the United States appeared to be at an impasse yesterday, further hardening their stance on ceasefire talks and opening the door to a new potential escalation of the Middle East war. Thousands of additional US troops were moving closer to the region, Israel was sending more troops to southern Lebanon to fight the Iranian-backed militant group Hezbollah, and Tehran was tightening its grip on the strategically important Strait of Hormuz.

A US proposal to end nearly four weeks of fighting is "one-sided and unfair," a senior Iranian official told Reuters yesterday, while US President Donald Trump said Iran must agree to a deal or face continued attacks.

The Iranian official said that the proposal, conveyed to Tehran by Pakistan, was "discussed in detail on Wednesday evening by the highest Iranian officials and representatives of the Supreme Leader." According to him, the proposal does not meet the minimum conditions for success and serves exclusively the interests of the US and Israel, noting that diplomacy has not ended despite the fact that there is currently no realistic plan for peace negotiations.

One Western diplomat said the American position was "maximalist" and that it was unclear whether Washington really wanted to end the war or calm markets ahead of a possible ground operation.

Trump described the Iranians as "great negotiators," but added that he was not sure he was "ready to make a deal with them to end the war."

Iran launched attacks on Israel, US bases and Gulf countries, while effectively blocking fuel exports from the Middle East through the Strait of Hormuz, after the US and Israel attacked Iran on February 28.

"They now have an opportunity, I'm talking about Iran, to permanently give up their nuclear ambitions and start a new path," Trump said during a cabinet meeting at the White House. "We'll see if they want to do that. If they don't, we're their worst nightmare. In the meantime, we're going to continue to destroy them."

One Western diplomat said the US position was "maximalist" and that it was unclear whether Washington really wanted to end the war or calm markets ahead of a possible ground operation.

Oil prices rose to $105 a barrel yesterday, while stock markets fell on renewed pessimism about the possibility of a ceasefire, with global sectors such as plastics, technology, trade and tourism suffering the consequences.

Trump suggested yesterday that Iran allow 10 oil tankers to pass through the Strait of Hormuz as a gesture of goodwill in negotiations, including some Pakistani-flagged ships, further clarifying what he had earlier described as a "gift" from Iran.

The president, who is expected to send thousands of troops to the Middle East, fueling expectations of a ground invasion, also said seizing control of Iran's oil was an option, but did not provide further details.

Iran's letter to the United Nations, seen by Reuters on Tuesday, said "non-hostile vessels" could pass through the strait if they coordinated with Iranian authorities.

A Thai tanker has already passed through the strait after diplomatic coordination with Iran, while Malaysia said its ships were also allowed to pass, indicating an easing of restrictions for some countries.

The Iranian embassy in Madrid said Tehran would be open to any request from Spain regarding the strait, the first such signal sent to an EU member state. "Iran considers Spain a country committed to international law, therefore it is open to any request coming from Madrid. #StraitofHormush," the Iranian embassy said in a post on the X platform.

Spain has a relatively small merchant fleet, but was among the first countries to condemn the US-Israeli attacks on Iran, calling the war reckless and illegal.

US special envoy Steve Witkoff confirmed that Washington had sent a "15-point list" as the basis for negotiations to end the war.

Pakistan's foreign minister said that "intermediate talks" between the US and Iran were taking place through messages relayed by Islamabad, with the support of other countries, including Turkey and Egypt. However, any negotiations would likely be extremely difficult, given the positions taken by both sides.

According to available information, the 15-point proposal includes demands ranging from dismantling Iran's nuclear program and limiting its missile capabilities to effectively handing over control of the Strait of Hormuz.

Iran has further hardened its stance since the start of the war, demanding guarantees against future military action, compensation for damage, and formal control over the strait, Iranian sources say, adding that among Iranian hardliners, the debate over whether Tehran should pursue a nuclear bomb is becoming louder, more public, and more determined.

Tehran also told mediators that Lebanon must be included in any ceasefire agreement, regional sources said.

Trump did not specify with whom the US is negotiating in Iran, given that many high-ranking officials are among the thousands killed in the war across the Middle East.

Israel has removed Iranian Foreign Minister Abbas Araghchi and Parliament Speaker Mohammad Baqer Ghalibaf from a list of targets after Pakistan appealed to Washington to influence Israel not to target them, a Pakistani source familiar with the talks told Reuters.

US and Israeli officials said Israel had killed the commander of the Iranian Revolutionary Guards Navy and had many more targets left as it continued to weaken Iran's capabilities.