Tensions between Iran and the United States have escalated again after Tehran warned that a renewed conflict is “likely” following President Donald Trump’s rejection of a new diplomatic proposal. The Iranian plan, which prioritises reopening the strategic Strait of Hormuz and lifting shipping restrictions before addressing nuclear talks, has been dismissed by Washington, deepening the standoff between the two sides. With both countries holding firm positions and mediation efforts yet to yield results, fears of further escalation in the region continue to grow.
A senior Iranian official on Saturday said Tehran has submitted a revised proposal to the United States that prioritises reopening the Strait of Hormuz and ending the current shipping blockade before addressing nuclear negotiations at a later stage.
According to the proposal, Iran would allow international shipping to resume through the Strait of Hormuz, while both the United States and Israel would halt military actions. In return, Washington would lift its blockade on Iranian ports. Talks on Iran’s nuclear programme would then be postponed to a later phase, where sanctions relief and uranium enrichment rights would be discussed.
However, US President Donald Trump said he is “not satisfied” with the latest Iranian offer, stating that Tehran is demanding conditions he cannot accept.
A senior Iranian official, speaking anonymously, said the proposal represents a significant shift intended to create space for a broader agreement.
He added that nuclear discussions should come only after easing tensions and restoring maritime access.
The developments come nearly four weeks after the United States and Israel paused their bombing campaign against Iran, which has already caused major disruption to global energy supply chains. The US earlier imposed restrictions on Iranian maritime activity, while Iran has largely maintained control over shipping routes from the Gulf during the conflict.
In a separate statement, another senior Iranian military official warned that renewed conflict with the United States remains “likely”, citing lack of trust in Washington’s commitments. He said past experience shows that the US has not honoured agreements.
The warning follows Trump’s remarks that he was considering either a military escalation or a negotiated settlement, though he said he would prefer a peaceful resolution.
Iran’s judiciary has also stated that while Tehran is open to dialogue, it will not accept imposed conditions. Meanwhile, reports suggest that US negotiators have proposed additional amendments, including restrictions on Iran’s nuclear materials during any talks.
The ongoing standoff has also affected global energy markets, with oil prices remaining volatile due to continued uncertainty over shipping through the Strait of Hormuz.
The conflict, which began in February, has already impacted oil, gas and fertiliser exports, while sanctions and blockades have further strained Iran’s economy. Inflation in Iran has reportedly crossed 50 per cent, adding to domestic pressure.
With both sides maintaining firm positions, diplomatic efforts remain ongoing through mediators, but no breakthrough has yet been achieved.