Speaking at the White House, Trump said Tehran was “asking for things” he could not accept, adding that while communication channels remain open, the Iranian leadership appeared divided. He reiterated that the United States would not rush into an agreement that could allow the dispute to resurface in the future, particularly over Iran’s nuclear ambitions.

On the other side, Iran’s Foreign Minister Abbas Araghchi said Tehran remains open to diplomacy, but only if Washington changes what he described as its “threatening rhetoric” and broader approach. He also warned that Iran’s armed forces remain ready to respond to any escalation.

Despite an April 8 ceasefire, both countries remain locked in disagreement over key issues, including Iran’s nuclear programme and control of the Strait of Hormuz, a critical route for global energy supplies. The sides have yet to agree on a second round of formal talks after an initial meeting in Islamabad.

The geopolitical strain has also spilled into US relations with allies. Washington announced the withdrawal of 5,000 troops from Germany following tensions with German Chancellor Friedrich Merz, whose recent remarks criticising US strategy were described by American officials as unhelpful.

Meanwhile, the conflict continues to weigh on global markets. Oil prices eased slightly after news of Iran’s proposal, with Brent crude hovering around $109 per barrel after earlier surging to multi-year highs. The disruption is largely linked to restrictions on energy flows through the Strait of Hormuz, through which a significant portion of global oil and gas supplies pass.

The war, which began with US and Israeli strikes on Iran in late February, has resulted in thousands of deaths and heightened fears of a broader economic impact. The United States has enforced a naval blockade on Iranian oil exports, further intensifying pressure on Tehran.

Trump said he faces a choice between pursuing a diplomatic settlement or escalating military action, but indicated a preference for negotiations if a viable deal can be reached. However, with both sides holding firm on core demands, prospects for a quick resolution remain uncertain.