Iran calls US military operation 'impossible' as Trump rejects Tehran's peace proposal

Iran's Revolutionary Guards said on Sunday that the United States must choose between an "impossible" military operation and a "bad deal" with Tehran. The statement came after President Donald Trump publicly dismissed Iran's latest peace proposal as insufficient. Negotiations between the two countries have been deadlocked since a ceasefire took effect on April 8.

What is Iran's peace proposal to the United States?

Iran submitted a 14-point proposal to mediator Pakistan, according to reports from Tehran's Tasnim and Fars news agencies. The proposal sets a one-month deadline for negotiations on a deal to reopen the Strait of Hormuz, end the U.S. naval blockade, and permanently end the war in Iran and Lebanon. That account was based on two sources briefed on the proposal, as reported by Axios.

Why did Trump reject Iran's latest proposal?

Trump said on his Truth Social platform that he could not imagine the plan would be acceptable. He argued Iran had "not yet paid a big enough price" for its actions over the past 47 years. Only one round of direct peace talks has been held since the ceasefire began.

Trump's envoy Steve Witkoff had separately asked for Iran's nuclear program to be returned to the negotiating table, Axios reported earlier in the week. Iran's mission to the U.N. rejected that framing, accusing Washington of "hypocritical behavior" given the size of the U.S. nuclear arsenal. Iran's deputy foreign minister, Kazem Gharibabadi, told diplomats in Tehran on Saturday that the country was "prepared for both paths," whether diplomacy or continued confrontation.

Could the U.S. launch new military strikes on Iran?

Trump declined to specify what would trigger renewed U.S. military action during a brief interview with reporters in West Palm Beach, Florida, on Saturday. "If they misbehave, if they do something bad, but right now, we'll see," he said, adding that further strikes remained "a possibility." The Revolutionary Guards responded by saying the room for U.S. decision-making had "narrowed."

Iranian military adviser Mohsen Rezaei, who advises Supreme Leader Mojtaba Khamenei, posted a warning on X that Iranian forces would sink U.S. aircraft carriers. There is no evidence that Iran has sunk any U.S. military vessels during the war. The exchange reflects the broader pattern of escalatory rhetoric that has accompanied the stalled Iran peace proposal process.

How is the Strait of Hormuz closure affecting Iran's economy?

Iran has maintained control of the Strait of Hormuz since the war began, blocking major flows of oil, gas and fertilizer. The United States has imposed a counter-blockade on Iranian ports. Global oil prices are now roughly 50 percent above pre-war levels.

Inside Iran, the economic pressure is intensifying. Inflation has surpassed 50 percent and oil exports have been curtailed. "Everyone is trying to endure it, but they are falling apart," said Amir, a 40-year-old Tehran resident who spoke to an AFP reporter based outside the country. He warned that once people exhaust their savings and reserves, conditions will deteriorate further.

Iran's parliament is also considering draft legislation to formalize control of the strait. Under the proposal, 30 percent of tolls collected would fund military infrastructure, with the remainder directed toward economic development. Deputy speaker Ali Nikzad said managing the strait was "more important than acquiring nuclear weapons."