Iranian state media reported Sunday that the Islamic Republic has issued a counter-offer to the latest U.S. peace proposal, notably refusing to address its nuclear program while prioritizing an end to regional hostilities and the reopening of critical maritime shipping lanes.

The counter-proposal, delivered through Pakistani mediators, seeks to ensure the security of shipping through the Strait of Hormuz before beginning negotiations on more contentious issues, according to the state-run IRNA news agency. The move significantly diverges from – and practically ignores – Washington’s latest framework, which sought a comprehensive deal to end the war, reopen the strategic waterway, and force a rollback of the regime’s nuclear program.

Iranian President Masoud Pezeshkian signaled a defiant tone on Sunday, stating in a post on X that the regime would “never bow our heads before the enemy.” Pezeshkian emphasized that any move toward dialogue should not be interpreted as a retreat, but rather an effort to “uphold the rights of the Iranian nation and to defend national interests with resolute strength.”

The diplomatic impasse is playing out against a backdrop of increasing military friction. Tehran has largely blocked non-Iranian shipping through the Strait of Hormuz—a waterway that previously carried 20 percent of the world’s oil supply—while the U.S. has responded with a blockade of Iranian ports. On Friday, U.S. forces struck two Iranian oil tankers for attempting to breach that blockade, prompting the Revolutionary Guard to warn of a “heavy assault” on U.S. regional bases and ships in retaliation for any further strikes.

Trump has vowed to “flex American military muscle” if Tehran refuses to comply with the U.S. proposal. On Saturday, the president threatened to resume “Project Freedom,” a military initiative that would utilize Navy warships to guide commercial vessels through the strait, should the current diplomatic track derail entirely.

Despite the escalatory rhetoric, the administration appears to be keeping the door open for a non-military resolution. U.S. Ambassador to the United Nations Mike Waltz told ABC on Sunday that Trump is giving diplomacy “every chance we possibly can” before returning to active hostilities.

(YWN World Headquarters – NYC)